When working with data, our ultimate goal is to draw conclusions. The point of data analysis is to discover useful information, inform conclusions, and support decision-making. In general, data analysis lets us evaluate the presence, strength, and direction of relationships between different variables in our data. It lets us see patterns and make connections that would be impossible to find looking at raw data.
Importantly, different types of data analysis allow us to draw different types of conclusions. In this lesson, we will learn about five types of data analysis:
- Descriptive analysis
- Exploratory analysis
- Inferential analysis
- Causal analysis
- Predictive analysis
When applied appropriately, these analyses might let us determine why something happened, why something is the way it is, or what is likely to happen next.