• Category
  • >Statistics

7 Types of Statistical Analysis: Definition and Explanation

  • Neelam Tyagi
  • Jan 19, 2021
  • Updated on: Jul 19, 2022
7 Types of Statistical Analysis: Definition and Explanation title banner

Statistics is the branch of science that renders various tools and analytical techniques in order to deal with the huge extent of data, in simple terms, it is the science of assembling, classifying, analyzing and interpreting & manifesting the numeric form of data for making inferences about the population, from the picked out sample data that can be used by business experts to solve their problems.

 

Therefore, in the efforts to organize data and anticipates future trends, depending upon the information, many organizations heavily rely on statistical analysis.

 

More precisely, statistical data analysis concerns data collection, interpretation and presentation. It can be approached while handling data to solve complex problems. More precisely, the statistical analysis delivers significance to insignificant/irrelevant data or numbers. 


 

The Key types of Statistical Analysis are

 

In particular, statistical analysis is the process of consolidating and analyzing distinct samples of data to divulge patterns or trends and anticipating future events/situations to make appropriate decisions. 

 

The statistical analysis has the following types that considerably depends upon data types. 


Displaying seven types of statistical analysis. i.e, descriptive and inferential statistical analysis, predictive, prescriptive analysis, exploratory data analysis, causal and mechanistic analysis.

7 types of statistical analysis


1. Descriptive Statistical Analysis

 

Fundamentally, it deals with organizing and summarizing data using numbers and graphs. It makes easy the massive quantities of data for intelligible interpretation even without forming conclusions beyond the analysis or responding to any hypotheses. 

 

Instead of processing data in its raw form, descriptive statistical analysis enables us to represent and interpret data more efficiently through numerical calculation, graphs or tables.

 

From all necessary preparatory steps to concluding analysis and interpretation, descriptive statistical analysis involves various processes such as tabulation, a measure of central tendency (mean, median, mode), a measure of dispersion or variance (range, variation, standard deviation), skewness measurements and time-series analysis.


Displaying the formula chart of mean, median, deviation, variance, and many more.

Formula chart, source


Under descriptive analysis, the data is summarized in tabular form and managed & presented in the forms of charts and graphs for summing up data, assuming it for the whole population. 

 

Also Read | Descriptive statistics in R

 

Moreover, it helps in extracting distinct characteristics of data and in summarizing and explaining the essential features of data. What’s more, no insights are drawn regarding the groups which are not observed/sampled.

 

2. Inferential Statistical Analysis

 

The inferential statistical analysis basically is used when the inspection of each unit from the population is not achievable, hence, it extrapolates, the information obtained, to the complete population. 

 

In simple words, inferential statistical analysis lets us test a hypothesis depending on a sample data from which we can extract inferences by applying probabilities and make generalizations about the whole data, and also can make conclusions with respect to future outcomes beyond the data available.

 

By this way, it is highly preferable while drawing conclusions and making decisions about the whole population on the basis of sample data. As such, this method involves the sampling theory, various tests of significance, statistical control etc.


Explaining the difference between descriptive and inferential statistical analysis.

Descriptive vs Inferential Statistical Analysis 


3. Predictive Analysis

 

Predictive analysis is implemented to make a prediction of future events, or what is likely to take place next, based on current and past facts and figures. 

 

In simple terms, predictive analytics uses statistical techniques and machine learning algorithms to describe the possibility of future outcomes, behaviour, and trends depending on recent and previous data. Widely used techniques under predictive analysis include data mining, data modelling, artificial intelligence, machine learning and etc. to make imperative predictions. 

 

In the current business system, this analysis is approached by marketing companies, insurance organizations, online service providers, data-driven marketing, and financial corporations, however, any business can take advantage of it by planning for an unpredictable future, such as to gain the competitive advantage and narrow down the risk connected with an unpredictable future event.

 

The predictive analysis converges on forecasting upcoming events using data and ascertaining the likelihood of several trends in data behaviour. Therefore, businesses use this approach to get the answer “what might happen?” where the basis of making predictions is a probability measure.

 

 

4. Prescriptive Analysis

 

The prescriptive analysis examines the data In order to find out what should be done, it is widely used in business analysis for identifying the best possible action for a situation. 

 

While other statistical analysis might be deployed for driving exclusions, it provides the actual answer. Basically, it focuses on discovering the optimal suggestion for a process of decision making.

  

Several techniques, implemented under prescriptive analysis are simulation, graph analysis, algorithms, complex event processing, machine learning, recommendation engine, business rules, etc.

  

However, it is nearly related to descriptive and predictive analysis, where descriptive analysis explains data in terms of what has happened, predictive analysis anticipates what could happen, and here prescriptive analysis deals in providing appropriate suggestions among the available preferences.


 

5. Exploratory Data Analysis (EDA)

 

Exploratory data analysis, or EDA as it is known, is a counterpart of inferential statistics, and greatly implemented by data experts. It is generally the first step of the data analysis process that is conducted prior to any other statistical analysis techniques.

 

EDA is not deployed alone for predicting or generalizing, it renders a preview of data and assists in getting some key insights into it. 

 

This method fully focuses on analyzing patterns in the data to recognize potential relationships. EDA can be approached for discovering unknown associations within data, inspecting missing data from collected data and obtaining maximum insights, examining assumptions and hypotheses. 


 

6. Causal Analysis

 

In general, causal analysis assists in understanding and determining the reasons behind “why” things occur, or why things are as such, as they appear. 

 

For example, in the present business environment, many ideas, or businesses are there that get failed due to some events’ happening, in that condition, the causal analysis identifies the root cause of failures, or simply the basic reason why something could happen. 

 

In the IT industry, this is used to check the quality assurance of particular software, like why that software failed, if there was a bug, a data breach, etc, and prevents companies from major setbacks.  

 

We can consider the causal analysis when;

  • Identifying significant problem-areas inside the data,
  • Examining and identifying the root causes of the problem, or failure, 
  • Understanding what will be happening to a provided variable if one another variable changes.

 

 

7. Mechanistic Analysis

 

Among the above statistical analysis, mechanistic is the least common type, however, it is worthy in the process of big data analytics and biological science. It is deployed to understand and explain how things happen rather than how specific things will take place ulteriorly.

 

It uses the clear concept of understanding individual changes in variables that cause changes in other variables correspondingly while excluding external influences and considering the assumption that the entire system gets influenced via its own internal elements’ interaction.

 

The fundamental objectives of mechanistic analysis involve;

  • Understanding the definite changes in that could make changes in other variables
  • A clear explanation of the happening of a past event in the context of data, especially when the particular subject/concern deals with specific activities.

 

For example, in biological science, when studying and inspecting how various parts of the virus are affected by making changes in medicine. 

 

Besides the above statistical analysis types, it is worth discussing here that these statistical treatments, or statistical data analysis techniques, profoundly rely on the way, the data is being used. While counting on the function and requirement of a particular study, data and statistical analysis can be employed for many purposes, for example, medical scientists can use a variety of statistical analysis for testing the drug effectiveness, or potency.

 

What’s more, plenty of available data can inform numerous things, data professionalists want to explore, therefore statistical analysis is able to get some informative outcomes and make some inferences. Also, in some cases, statistical analysis can be approached to accumulate information regarding the preference of people and their habits. 

 

For example, user data, at sites like Facebook and Instagram, can be used by analysts for understanding user perception, like what uses are doing and what motivates them. This information can benefit commercial ads where a particular group of users are targeted to sell them things. It is also helpful for the application developers to understand users’ response and habits and make changes in products accordingly.


 

Conclusion

 

A deeper understanding of data can widen the numerous opportunities for a business, with the implementation of business analytics, an organization can achieve while scrutinizing data, for driving, for example, predictions, insights, or conclusions from data and this is what statistical analysis can do, for example;

 

  • Compiling and manifesting data in the form of graphs or charts to show key findings,
  • Exploring significant elements/ measurements from data, like mean, variance, skewness, etc,
  • Testing a hypothesis from multiple experiments,
  • Anticipating coming foresight on the basis of past data behaviour, and many more.

 

And hence, a business can take advantages of statistical analysis in various ways, for example, to determine the down performance of sales, to uncover trends from customer data, conducting financial audits, etc.  

 

Also Read | Bayesian Statistics

 

We have seen, preferably, two main types “descriptive and inferential statistical analysis” is to choose while applying statistical analysis to a business problem, however, other types of statistical analysis will become a priority while addressing some other business needs, organizations are looking for, depending on the complete intent or queries.

Latest Comments

  • Vivian Marcus

    Sep 06, 2023

    Hello my name is Vivian Marcus from the United State, i'm so exciting writing this article to let people seek for help in any Break up Marriage and Relationship, Dr Kachi brought my Ex Boyfriend back to me, Thank you Sir Kachi for helped so many Relationship situation like mine to be restored, i was in pain until the day my aunt introduce me to Dr Kachi that she got her husband back with powerful love spell with help of Dr Kachi So i sent him an email telling him about my problem how my Boyfriend left me and cheating on me because of her boss lady at work i cry all day and night, but Dr Kachi told me my Boyfriend shall return back to me within 24hrs and to me everything he asked me to do the next day it was all like a dream when he text me and said please forgive me and accept me back exactly what i wanted, i am so happy now as we are back together again. because I never thought my Ex Boyfriend would be back to me so quickly with your spell. You are the best and the world greatest Dr Kachi. if you're having broke up Ex Lover or your husband left you and moved to another woman, You do want to get Pregnant do not feel sad anymore contact: drkachispellcast@gmail.com his Text Number Call: +1 (209) 893-8075 You can reach him Website: https://drkachispellcaster.wixsite.com/my-site

  • Elizabeth Brooklyn

    Sep 13, 2023

    HOW I CLEARED MY DEBT IN HOURS . If you are in any debt and you need money to clear your debt and you need money to pay off those bills i will advise you contact DARK WEB ONLINE HACKERS to get a bank transfer hack or blank atm card because I just get paid $50,00 for their service and I got my blank atm card of $90,000 delivered to my destination after 24hours of payment i trust their service and they are reliable and trustworthy don't SEARCH no more contact them today and get paid without the fear of being ripped off your money okay Visit their company website at https://darkwebonlinehackers.com For quick and direct response email them at darkwebonlinehackers@gmail.com info@darkwebonlinehackers.com Telegram or WhatsApp: +18033921735 Contact them and get paid.

  • Elizabeth Brooklyn

    Sep 13, 2023

    HOW I CLEARED MY DEBT IN HOURS . If you are in any debt and you need money to clear your debt and you need money to pay off those bills i will advise you contact DARK WEB ONLINE HACKERS to get a bank transfer hack or blank atm card because I just get paid $50,00 for their service and I got my blank atm card of $90,000 delivered to my destination after 24hours of payment i trust their service and they are reliable and trustworthy don't SEARCH no more contact them today and get paid without the fear of being ripped off your money okay Visit their company website at https://darkwebonlinehackers.com For quick and direct response email them at darkwebonlinehackers@gmail.com info@darkwebonlinehackers.com Telegram or WhatsApp: +18033921735 Contact them and get paid.

  • jamescastle5297a42eb207bd64e0a

    Sep 15, 2023

    I’m a 36 years old divorce, software engineer living in the Midwest. I have two children with my ex-spouse (who pay a boatload of child support and Alimony too). Over the last 18 years I’ve not handled my finances wisely. I’ve had every kind of bad mark against me you can imagine: evictions, judgements, past due child support, a chapter 7 bankruptcy, charged off bank accounts, unpaid and unfiled taxes, liens and levy’s. All 3 of my credit scores came down to high 500s, I needed to work on my credit. Every part of life that involves money was so incredibly difficult for me. I asked my lawyer if there’s any trusted credit repair company which he recommended to PINNACLE CREDIT SPECIALIST. Immediately at his presence I gave them a text which I got a response from them after some couple of minutes. I gave them a brief explanation about my financial issue and asked them if they could help me fix my credit. Which they gave me a 100% guarantee that they can. To my greatest surprise after 6 days I got a message from them that my credit has been permanently fixed. I immediately checked through Experian and discovered my credit has been increased to 800s across the 3 credit bureaus. And my credit report has been renewed, I now have a clean credit report. All thanks to PINNACLE CREDIT SPECIALIST. I honestly recommend them from my heart. Hit them up on: PINNACLECREDITSPECIALIST@GMAIL.COM

  • Juliana Davis

    Sep 15, 2023

    i want to share to the whole world how Dr Kachi the Great of all the Spell Caster, that helped me reunite my marriage back, my Ex Husband broke up with me 3months ago, I have been trying to get him back ever since then, i was worried and so confused because i love him so much. I was really going too much depressed, he left me with my kids and just ignored me constantly. I have begged him for forgiveness through text messages for him to come back home and the kids crying and miss their dad but he wont reply, I wanted him back desperately. we were in a very good couple and yet he just ignores me and get on with his life just like that, so i was looking for help after reading a post of Dr Kachi on the internet when i saw a lady name SHARRON testified that Dr Kachi cast a Pure love spell to stop divorce. and i also met with other, it was about how he brought back her Ex lover in less than 24 hours at the end of her testimony she dropped his email, I contacted Dr Kachi via email and explained my problem to Dr Kachi and he told me what went wrong with my husband and how it happen, that he will restored my marriage back, and to my greatest surprise my Ex husband came back to me, and he apologized for his mistake, and for the pain he caused me and my children. Then from that day our marriage is now stronger than how it was before, Dr Kachi you're a real spell caster, you can also get your Ex back and live with him happily: Contact Email drkachispellcast@gmail.com his Text Number and Call: +1 (209) 893-8075 his Website: https://drkachispellcaster.wixsite.com/my-site

  • sarahpowell566afab7b79ae1a430c

    Sep 18, 2023

    Shout out to PINNACLE CREDIT SPECIALIST for helping me achieve my goals of getting an excellent credit score and getting these collections off my credit report.  I am 27. Got my first. Credit cards at 18... was approved for a car off of the Toyota lot 7 months later with no cosigner... Being young and dumb, I maxed out all of my cards and had to go through a rebuild process in 2018 which didn’t work out for me. At that time, I had late payments and collections. I was making a lot of money at the time and again, was spending stupidly. From then on, things only went downhill. Long story short my AMEX was charged off and still reports every month as a charge off. I needed help getting this off my credit because it has shot it down so much!!! Until I came across PINNACLE CREDIT SPECIALIST on this forum how they helped some members restore their credit. I quickly contacted them by email: PINNACLECREDITSPECIALIST@GMAIL.COM to my greatest surprise, within 6 days they helped me achieve my goals. I’m really grateful for their services. I sincerely recommend them.

  • stephaniefueger557e94fd499197f41e9

    Sep 21, 2023

    I am 21 years old, and I graduated college in May 2023. When I started college, I didn't have the credit history to obtain a private student loan for tuition expenses, and I didn't know anyone who would co-sign for me -- and my parents weren't in the position to do so either. Having a decent job at the time, I had the 'bright idea' to obtain a personal loan through my credit union (Founders FCU in SC) to pay for my tuition expenses. Each year I borrowed a little more to pay for each semester -- the loan ended up reaching a whopping $10,000. My credit union also talked me into applying for a credit card -- which I did and had a limit of $5,000. My fall semester of college I lost the job I had throughout college, and having no income until my internship started the next summer, I wasn't able to make the payments and they eventually went into charge off status. Also, during my Junior year in college, my grandmother needed a loan for medical expenses, and her credit was not good enough to qualify on her own, I agreed to co-sign for her, which was dumb, I know. It was a smaller open line of credit ($2,500) at State Employees Credit Union in NC. Around 6 months in, she couldn't make the payments, so I paid it off for her. Unknown to me, she took out an advance on the line right before she passed, and I found out shortly after and was stuck with the bill, and that did not help with the fact that I had lost my job and was already drowning in debt that I could not pay. That account went into charged off status as well shortly after. I have been in a relationship for a couple years, we recently moved in together, and the struggle of being approved as a co-applicant due to my credit made me realize that I needed to get my credit back in shape. It's easy to give up and forget about it, but I know that in the next 3-5 years we will want to buy a house, and I don't want to be the one who makes it difficult because I haven't addressed my credit situation. I have attempted a settlement and payment arrangement with Founders FCU and they have surprisingly been very difficult to work with -- they will not settle and will not make a payment arrangement with me. They also told me that they have filed a judgement. The loan through Founders is still accruing interest as well, but the credit card is not. I got a secured loan through NFCU in March for $300 at a 6-month term, after that a friend of mine who is an attorney recommended PINNACLE CREDIT SPECIALIST to me, which I quickly contacted and explained my predicament to them. They gave me 100% assurance that they’ll bring my credit back to shape. Within 6 days they made my State Employees line of credit reporting as paid and some of my debts marked as paid which boosted my score to an excellent score. Mohela student loan no longer appears on my credit report. All thanks to PINNACLE CREDIT SPECIALIST for helping me gain my happiness back, I sincerely recommend them. Hit them up on email: PINNACLECREDITSPECIALIST@GMAIL.COM

  • Vivian Marcus

    Sep 22, 2023

    Hello my name is Vivian Marcus from the United State, i'm so exciting writing this article to let people seek for help in any Break up Marriage and Relationship, Dr Kachi brought my Ex Boyfriend back to me, Thank you Sir Kachi for helped so many Relationship situation like mine to be restored, i was in pain until the day my aunt introduce me to Dr Kachi that she got her husband back with powerful love spell with help of Dr Kachi So i sent him an email telling him about my problem how my Boyfriend left me and cheating on me because of her boss lady at work i cry all day and night, but Dr Kachi told me my Boyfriend shall return back to me within 24hrs and to me everything he asked me to do the next day it was all like a dream when he text me and said please forgive me and accept me back exactly what i wanted, i am so happy now as we are back together again. because I never thought my Ex Boyfriend would be back to me so quickly with your spell. You are the best and the world greatest Dr Kachi. if you're having broke up Ex Lover or your husband left you and moved to another woman, You do want to get Pregnant do not feel sad anymore contact: drkachispellcast@gmail.com his Text Number Call: +1 (209) 893-8075 You can reach him Website: https://drkachispellcaster.wixsite.com/my-site

  • laurynhamilton9b271001230c541ca

    Sep 25, 2023

    Lost or forgotten access to your hard-earned cryptocurrencies? Don't panic! Cyber Genie Hack Pro is here to help you recover your forgotten, stolen crypto or fix your cyber problem. Don't let hackers get away with your hard-earned digital assets, Cyber Genie team will leave no stone unturned to ensure you get all you have lost. Let me introduce to the world, CYBER GENIE HACK PRO, a legitimate private investigative and asset recovery company that assists victims of various frauds in recouping their lost money, hacked or scammed digital assets, and more. They are very handy and take their client's cases extremely personally. This is a personal experience with them that's why I am putting this 5-star review out here about Cyber Genie's firm. Customer inquiry mediums of theirs are: - Cybergene @ cyberservices (.) com - - WhatsApp -+,12,52,5,12,03,91 - Thank you

  • Vivian Marcus

    Sep 26, 2023

    Hello my name is Vivian Marcus from the United State, i'm so exciting writing this article to let people seek for help in any Break up Marriage and Relationship, Dr Kachi brought my Ex Boyfriend back to me, Thank you Sir Kachi for helped so many Relationship situation like mine to be restored, i was in pain until the day my aunt introduce me to Dr Kachi that she got her husband back with powerful love spell with help of Dr Kachi So i sent him an email telling him about my problem how my Boyfriend left me and cheating on me because of her boss lady at work i cry all day and night, but Dr Kachi told me my Boyfriend shall return back to me within 24hrs and to me everything he asked me to do the next day it was all like a dream when he text me and said please forgive me and accept me back exactly what i wanted, i am so happy now as we are back together again. because I never thought my Ex Boyfriend would be back to me so quickly with your spell. You are the best and the world greatest Dr Kachi. if you're having broke up Ex Lover or your husband left you and moved to another woman, You do want to get Pregnant do not feel sad anymore contact: drkachispellcast@gmail.com his Text Number Call: +1 (209) 893-8075 You can reach him Website: https://drkachispellcaster.wixsite.com/my-site