When you have any role in the operation of a company, data is crucial to growth.
After all, consider this: every company has goals that it wants to achieve over the course of the next month, quarter, year, or further. Thus, every company has a finish line that it wants to get to.
The question then arises, how do you know how far away from that finish line you are if you don’t have data? An abundance of data is critical to understanding the achievement of your company’s lofty goals.
These five data analysis methods will allow your company to better use data to understand where it’s going and how it’s gonna get there.
One of the most common statistical methods, a regression analysis involves taking a set of data, setting an independent and dependent variable, and analyzing whether there is a repeatable pattern. If such a pattern of high consistency is discovered, then the independent variable can be used to predict the dependent variable.
A regression can be linear, polynomial, exponential, or logarithmic. Make sure to consider all possible types in order to get the regression of best fit.
A correlation analysis is similar to a regression analysis in that it involves finding a relationship between two variables. However, where a regression analysis is causative (the independent variable causes the dependent variable), a correlation analysis is (obviously) just correlative.
This means that you will not be able to given one variable, you won’t be able to predict the other with absolute certainty. Instead, correlation analysis just establishes a link between the two variables, which has useful applications to product development.
One of the most important types of statistical analysis, scenario analysis involves taking a future situation, and analyzing all of the potential future outcomes. This statistical method is crucial whenever your company is about to make a major decision.
Analyzing all possible outcomes will allow you to influence the scenario to produce the most desired outcome.
Data visualization is key to presenting whatever analysis you complete. The old proverb, “a picture is worth a thousand words,” is never truer than with data analysis.
Whenever you present the data you’ve collected to the higher-ups, it’s crucial that you use data visualization tools like MongoDB analytics to sell the correlations and regressions that you’ve been able to establish.
Sample Size Determination