Statistics is the study of the collection, analysis, interpretation, presentation, and organization of data. In applying statistics to, e.g., a scientific, industrial, or social problem, it is conventional to begin with a statistical population or a statistical model process to be studied. Populations can be diverse topics such as "all people living in a country" or "every atom composing a crystal". Statistics deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments.
Statistical Analysis is an aspect of Data Analysis. In the context of Business Intelligence (BI), statistical analysis involves collecting and scrutinising 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:
- Describe the nature of the data to be analyzed.
- Explore the relation of the data to the underlying population.
- Create a model to summarize understanding of how the data relates to the underlying population.
- Prove (or disprove) the validity of the model.
- Employ predictive analytics to run scenarios that will help guide future actions.
- Ordinary Least Squares
- Regression Analysis
- Analysis of Variance, ANOVA
- Outlier Analysis
- Backward Propagation
- Structure Modelling