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Statistical Analysis

Statistical analysis is a component of data analytics.

In the context of business intelligence (BI), statistical analysis involves collecting and scrutinizing every data sample in a set of items from which samples can be drawn. A sample, in statistics, is a representative selection drawn from a total population.

Statistical analysis can be broken down into five discrete steps, as follows:

1-Describe the nature of the data to be analyzed.
2-Explore the relation of the data to the underlying population.
3-Create a model to summarize understanding of how the data relates to the underlying population.
4-Prove (or disprove) the validity of the model.
5-Employ predictive analytics to run scenarios that will help guide future actions.