Definition

statistical analysis

Statistical analysis is a component of data analytics. In the context of business intelligence (BI), statistical analysis involves collecting and scrutinizing every single data sample in a set of items from which samples can be drawn.

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.

The goal of statistical analysis is to identify trends. A retail business, for example, might use statistical analysis to find patterns in unstructured and semi-structured customer data that can be used to create a more positive customer experience and increase sales. 

This was last updated in July 2014
Contributor(s): Stan Gibilisco
Posted by: Margaret Rouse

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