For WizardKim-D.A.D R1

Week 3 Data Analysis Discussion Post Response :

Instructions:

Respond to the post below with any inputs or suggestions.

· All posts (both initial and responses) must be substantial (several paragraphs each) and each of your initial posts must be supported by 3 peer reviewed or authoritative sources, not including the textbook, cited properly in APA format. Responses should have proper support with at least 1 different source as applicable.  

Data analysis plays a critical role in contemporary business processes. Most businesses use their data to identify customer trends for strategic planning. Appropriate statistical tests are essential in ensuring that companies make the most out of available data. It is important to evaluate the contexts each type of test is appropriate for to determine the usefulness of the tests in analyzing the company’s transaction data.

The analysis report indicates the number of deposits less than $0 to be 400, while the number of repeat transactions is 8. The report used descriptive statistics, most specifically frequencies. Descriptive statistics are appropriate tests when describing complex data. It presents a general overview of big data in an easily understandable form (Norris et al. 22). The current analysis indicates that only eight customers performed more than one transaction during the month under consideration, and 400 withdrawals in the month. The decision-makers can use these analyses to determine future strategies to improve the organization's performance.

Predictive statistics are useful in forecasting customer and transaction trends for the organization. For example, regression analysis can help decision-makers to determine how the organization's performance will be in the future. It is essential to project future transactions and customer behavior to plan appropriately. While descriptive statistics provide useful performance metrics for particular variables such as the fraction of repeat transactions in the dataset, regression analysis shows the trends within the data (Furht and Villanustre 8). This improvement will help the company to know the presence, amount, and direction of change in the two metrics. Therefore, performing regression analysis would help the company to determine the significance of the number of deports and repeat transactions relative to the previous period. 

References:

Furht, Borko, and Flavio Villanustre. "Introduction to big data." Big data technologies and applications. Springer, Cham, 2016. 3-11.

Norris, Gareth, et al. Introduction to statistics with SPSS for social science. Routledge, 2014.