Data Analytics and Artificial Intelligence
Chapter1: Introduction to Data Analytics and Artificial Intelligence
Grading Policy
Evaluation Grade
Assignments 10
Midterm Exam 30
Mini-project 20
Final Exam 40
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Data Analytics
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Data Analytics
▪ Data: Set of values of qualitative or quantitative variables
▪ Information: Meaningful or organized data
▪ Data Analytics: The process of examining data in order to draw and
communicate useful conclusions about the information it contains
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Data Analytics : Then and Now
▪ Data Analytics has been around for years
▪ Even in 1950’s, businesses were using basic analytics (manual
examination) on data (essentially numbers in a spreadsheet) to uncover
insights and trends
▪ New tools and technologies bring speed and efficiency in techniques
▪ Today, businesses analyze data and can identify insights for immediate
decisions
▪ The ability to work faster and stay agile gives organizations a competitive
edge they did not have before
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Data Analytics : The Process
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Data Analytics : The Process
Define Objectives : Clearly define the goals of the analysis and the specific
questions you aim to answer. Establish a clear understanding of what insights or
decisions the analyzed data should inform.
Data Collection: Gather relevant data from various sources. Ensure data integrity,
quality, and completeness. Organize the data in a format suitable for analysis. There
are two types of data: qualitative and quantitative data.
Data Cleaning and Preprocessing: Address missing values, handle outliers, and
transform the data into a usable format. Cleaning and preprocessing steps are
crucial for ensuring the accuracy and reliability of the analysis.
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Data Analytics : The Process
Exploratory Data Analysis (EDA): Conduct exploratory analysis to understand
the characteristics of the data. Visualize distributions, identify patterns, and calculate
summary statistics. EDA helps in formulating hypotheses and refining the analysis
approach.
Statistical Analysis : Apply appropriate statistical methods or modeling
techniques to answer the defined questions. This step involves testing hypotheses,
building predictive models, or performing any analysis required to derive meaningful
insights from the data.
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Data Analytics : The Process
Visualization and Communication: Interpret the results in the context of the
original objectives. Communicate findings through reports, visualizations, or
presentations. Clearly articulate insights, conclusions, and recommendations based
on the analysis to support informed decision-making.
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Data Analytics : Types of Data Analysis
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Data Analytics : Types of Data Analysis
Descriptive Analysis : Descriptive analysis helps us understand what happened
in the past. It looks at historical data and summarizes it in a way that makes
sense.
What it does: Summarizes and describes past data.
Purpose: Answers “What happened?”
For example, a company might use descriptive analysis to see how much they
sold last year or to find out which product was most popular.
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Data Analytics : Types of Data Analysis
Diagnostic Analysis: Diagnostic analysis works hand in hand with
Descriptive Analysis. As descriptive Analysis finds out what happened in the
past, diagnostic Analysis, on the other hand, finds out why did that happen or
what measures were taken at that time, or how frequently it has happened. It
helps businesses figure out the reasons behind certain outcomes.
What it does: Examines data to understand why something happened.
Purpose: Answers “Why did it happen?”
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Data Analytics : Types of Data Analysis
Predictive Analysis: By forecasting future trends based on historical data,
predictive analysis enables organizations to prepare for upcoming
opportunities and challenges.
What it does: Uses historical data and models to predict future outcomes.
Purpose: Answers “What is likely to happen?”
For example, a store might use predictive analysis to figure out what
products will be popular in the upcoming season. It helps businesses prepare
for future events and make plans. 13
Data Analytics : Types of Data Analysis
Prescriptive Analysis: Prescriptive Analysis is an advanced method that takes
Predictive Analysis insights and gives suggestions on the best actions to take.
What it does: Suggests actions based on predictions to achieve the best
outcome.
Purpose: Answers “What should we do?”
For example, if predictive analysis shows that a certain product will be popular,
prescriptive analysis might suggest how much stock to buy or what marketing
strategies to use. It’s about giving businesses clear advice on how to act.
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Artificial Intelligence (AI)
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Artificial Intelligence (AI)
Artificial Intelligence (AI) is a technology that enables machines and computers
to perform tasks that typically require human intelligence. It helps systems learn
from data, recognize patterns and make decisions to solve complex problems.
It is used in healthcare, finance, e-commerce and transportation offering
personalized recommendations and enabling self-driving cars.
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Artificial Intelligence (AI)
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Artificial Intelligence (AI): Core Areas of AI
Machine Learning (ML): Teaching systems to learn from data.
Natural Language Processing (NLP): Understanding and processing
human language (e.g., chatbots).
Computer Vision: Analyzing and interpreting visual data (e.g., facial
recognition).
Robotics: Designing machines that can perform human-like tasks.
Expert Systems: AI systems designed to provide expert-level decisions in
specific domains.
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Relationship between Data Analytics and AI
Data Analytics focuses on analyzing data and generating [Link] builds
on these insights to make intelligent decisions and automate processes.
Example:
Data Analytics shows that customers buy more umbrellas during rainy days.
AI uses this insight to automatically adjust stock levels and personalize
promotions in real-time.
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Applications of Data Analytics and AI
Healthcare: Predicting diseases, recommending treatments.
Finance: Fraud detection, credit scoring, algorithmic trading.
Retail: Personalized recommendations, inventory management.
Transportation: Route optimization, self-driving cars.
Education: Adaptive learning platforms, student performance analytics.
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Benefits and Challenges
Benefits
▪ Improved decision-making
▪ Efficiency and automation
▪ Cost reduction
▪ Better customer experiences
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Benefits and Challenges
Challenges
▪ Data privacy and security
▪ Bias in AI models
▪ Data quality issues
▪ High implementation cost
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