A Brief Introduction to the Analysis of Data

Statistical analysis, in simple terms, is the scientific, precise study of the direct relationship between statistical variables and their effect on the outcome of a specific study. The goal of statistical analysis would be to ascertain whether the stated hypothesis (a carefully chosen hypothesis) regarding the direct relationship between the variables is true. In the end, statistical analysis would come out with an answer that can be used in computing statistics and other mathematical tools used in science. In this article, we will see how we can use a variety of statistical techniques to analyze data sets to come up with some of the best possible results.

One of the best methods for statistical analysis would be the dependent-variable method where one variable is measured as the dependent variable and the other as the independent variables. For instance, if we are looking at the survey data set of a particular company, the dependent variable is the income group and the independent variable is the average income of all the employees. By averaging all the incomes, we can form a sample of the average income of all the employees working in that company. By conducting statistical analysis, we can now look into how much the average income varies across different groups within that average.

Let us now apply this same concept to cluster analysis. The concept of cluster analysis is very easy to understand. We have already formed a sample of a particular company’s employees, now all we have to do is make cluster out of them using the standard statistical method called the t-test. If there is a significant difference between the cluster means, then the independent variable must be the cluster mean and vice-versa. If there is no significant difference, then we can conclude that both mean are the independent variables and therefore, the t-test is not significant.

Another famous form of statistical analysis would be the conjoint analysis. In this method, there are two or more factors that need to be statistically compared in order to arrive at a conclusion. For instance, if one of the factors shows a significant effect, then the other factor must be tested as well. In this way, it is possible to find the effect of a price elasticity, say a drop in the price of a product if a certain percentage of the customers purchase it.

Now let us compare the results obtained by this two methods. If we use the t-test, we will see that there is indeed a significant difference in the mean prices. This means that the product’s price has dropped significantly. However, using the conjoint analysis, we will notice that the price has fallen equally for all the products. This could indicate that the products are of equal importance to the market, even though their prices are slightly different.

Another example can be used to prove the importance of price elasticity. Suppose that there is a drop in the mean price of a product and then the mean price increases. This will imply that the previous increase is now a decline. If the analysis is done using the t-test, then we will observe that there is indeed a decreasing mean price. This shows that the increase in mean price was not caused by demand, but by the increased supply.

Let us compare the results obtained by these two tests. If we use the t-test, we will see that there is indeed a significant difference between the actual mean price and the predicted mean price. This shows that the variation of price between the real and predicted times is significantly different. If we use the conjoint test, we will see that the actual mean price and the predicted mean price have slight differences, but they are not significant. This difference may be due to the fact that the products are of equal importance to the market, regardless of their difference in mean time period.

One more statistical test that we can do is the analysis by contrasts. This test compares the changes in prices of variables, such as the mean price over time. It can be used in two ways: first, by taking a logarithm of price changes (over time) and comparing it with the mean; or second, by taking a statistically significant difference from the actual value. Comparison by contrasts was widely applied in the field of statistics. Examples of applications of statistical analysis by contrasts are statistical analysis of health care claims, insurance claims, retailing sales, and sales of a particular good or service to a particular group of people.