Kinds of Statistical Analysis

Statistics involves the study of data to derive new understanding of the subjects the data represents. Because this discipline can examine both past performance and make educated guesses about the future behavior of conditions, it is used in both academics and business. Understanding the different analytical methods utilized in statistics is important to effectively harnessing the power of data analysis.
  1. Basic Statistical Measurement

    • The simplest form of statistical analysis incorporates tools to figure out the middle range of data measured. Practices such as measuring the mean, the mode, and the average of a data set represent these basic tools. They are typically taught first in statistical analysis courses to teach students how to begin manipulating data for results.

    Linear Regression

    • The process of measuring behavior of data when two variables may be unknown and the data moves in a sequential pattern is known as linear regression. By breaking down at each point where the other variable results in allows a user to graph a line on a graph to measure the data with different inputs of data. The model commonly uses a process of solving for X and Y in a mathematical formula.

    Multiple Regression

    • Where data involves multiple variables that can change simultaneously, multiple regression is used to determine measurements. This statistical model allows a user to place multiple variables into a mathematical model and solve for them at different data points. The result graphically can begin to look like a three dimensional shape as it measures data with three or more different metrics. This sort of statistical analysis tends to be frequently used in stock portfolio analysis.

    Variation and Deviation

    • In some cases, the statistical analysis is focused more on the change that occurs within an entire data population rather than specific points. Statistical formulas for measuring variation or standard deviation get used for this purpose. Practical applications involve determining change to confirm tolerances or ranges of acceptable change before measurements exceed acceptable limits.

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