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Data Analytics
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 Data Analytics
Systems Engineering • Cybersecurity • Project Management

Christopher Greco

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Contents

Preface������������������������������������������������������������������������������������������������������ xi
Acknowledgments����������������������������������������������������������������������������������� xiii

1 Introduction to Statistics for

Data Analysts����������������������������������������������������������������� 1–4
1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 The Three Professions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2 What is Data?���������������������������������������������������������������� 5–10

2.1 Data Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.1 Quantitative values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.1.2 Qualitative values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1.3 Application of Each Type of Data. . . . . . . . . . . . . . . . . . . . . . . . . 8

3 Statistics Review – Measures of the

Central Tendency�������������������������������������������������� 11–32
3.1 Mean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.1.0 Averaging with the PERT Method. . . . . . . . . . . . . . . . . . . . . . . 13
3.1.1 Geometric Mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.2 Median. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.3 Mode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
vi • Data Analytics

3.4 Data Skew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.4.1 Kurtosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.5 Measures of Variation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.5.1 Variance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.5.2 Standard Deviation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.5.2.1 Real-World Use of the Standard Deviation. . . . . . . . . . . . . . . . 22
3.6 Standard Normal Curve vs. Normal Curve . . . . . . . . . . . . . . . . 23
3.7 Other Measures of Variation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.7.1 Mean Absolute Deviation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.7.2 Median Absolute Deviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.7.3 Still More Tests for Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.7.3.1 Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.7.3.2 Inter-Quartile Range (IQR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.7.3.3 Percentile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.7.4 Five Number Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4 Probability Primer������������������������������������������������� 33–38

4.1 Addition Method in Probability . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.2 Multiplication Property of Probability. . . . . . . . . . . . . . . . . . . . 35
4.3 Bayesian Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

5 Occam’s Razor and Data Analytics������������������ 39–42

5.1 Data Origination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

6 Data Analysis Tools������������������������������������������������ 43–48

6.1 Microsoft Excel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
6.2 R Stats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
6.3 Open Office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
6.4 Minitab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
6.5 Tableau, SPSS, QLIK, and others. . . . . . . . . . . . . . . . . . . . . . . . 45
6.6 Geospatial Statistical Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . 45
6.6.1 ARCGIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
6.6.2 QGIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

7 Effect Size ����������������������������������������������������������������� 49–52

7.1 Correlation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
7.1.1 Correlation does not mean causation, but…. . . . . . . . . . . . . . . 51
 Contents • vii

8 Analysis Process Methods���������������������������������� 53–62

8.1 CRISP-DM Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
8.1.1 Understand the Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . 54
8.1.2 Understanding the Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
8.1.3 Preparing the Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
8.1.4 Analyze and Interpret the Data . . . . . . . . . . . . . . . . . . . . . . . . . 56
8.1.5 Evaluate the Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
8.1.6 Communicate and Deploy the Results. . . . . . . . . . . . . . . . . . . . 57
8.2 Alternative Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
8.2.1 Framing the Question. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
8.2.2 Understanding Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
8.2.3 Choose a Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
8.2.4 Calculate the Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
8.2.5 Interpret the Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
8.2.6 Test the Significance of the Statistics. . . . . . . . . . . . . . . . . . . . . 62
8.2.7 Question the Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

9 Data Analytics Thinking�������������������������������������� 63–76

9.1 Elements of Data Analytic Thinking . . . . . . . . . . . . . . . . . . . . . 64
9.1.1 Data Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
9.1.2 Analysis Elements Inside Data. . . . . . . . . . . . . . . . . . . . . . . . . . 64
9.1.3 Analysis Elements Outside Data. . . . . . . . . . . . . . . . . . . . . . . . . 65
9.2 There is a “Why” in Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
9.2.1 The “V’s” in Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
9.2.1.1 Data Velocity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
9.2.1.2 Data Variety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
9.2.1.3 Data Volume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
9.2.1.4 Data Vulnerability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
9.3 Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
9.3.1 Probability of Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
9.3.2 Risk Impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
9.3.3 The Risk Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

10 Where’s the Data?��������������������������������������������������� 77–88

10.1 Data Locations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
10.2 How Much Data? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
10.3 Sampling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
viii • Data Analytics

10.3.1 Random Sampling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

10.3.2 Systematic Sampling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
10.3.3 Sampling Bias . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
10.3.3.1 Mitigating Data Bias. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
10.3.4 Determinism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
10.3.4.1 Lift. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
10.3.4.2 Leverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
10.3.4.3 Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
10.3.4.4 Strength. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

11 Data Presentation��������������������������������������������������� 89–94

11.1 The Good, the Bad, and the OMG���������������������������������������������89
11.2 Real-World Example from a Project Management
Perspective�����������������������������������������������������������������������������������92

12 Geospatial Data Analytics�������������������������������� 95–102

12.1 Geospatial Mean Center�������������������������������������������������������������95
12.1.1 Real-World Application of Geospatial Mean�����������������������������97
12.2 Standard Distance�����������������������������������������������������������������������99
12.3 Standard Deviational Ellipse �����������������������������������������������������99
12.4 Geary’s C �����������������������������������������������������������������������������������100

13 Additional Data Analytics Methods��������� 103–110

13.1 Entropy �������������������������������������������������������������������������������������103
13.2 Effect Size, Part 2���������������������������������������������������������������������105
13.3 Modeling and Simulation ���������������������������������������������������������106
13.3.1 Model Type �������������������������������������������������������������������������������106
13.3.2 Simulation ���������������������������������������������������������������������������������109

14 Summary�������������������������������������������������������������������� 111–112

15 Case Studies����������������������������������������������������������� 113–122

15.1 Case Study Scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
15.2 Case Study: Description of Data. . . . . . . . . . . . . . . . . . . . . . . .114
15.3 Case Study: Normal Curve. . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
15.4 Case Study: Variation Measures. . . . . . . . . . . . . . . . . . . . . . . . 117
 Contents • ix

15.5 Case Study: Probability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

15.6 Case Study: Occam’s Razor. . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

APPENDIX
RECOMMENDED SOLUTIONS FOR
CASE STUDIES����������������������������������������������������������������� 123–126
A Introduction�������������������������������������������������������������������������������123
A.1 Recommended Approach for Case Study 15.2 �����������������������123
A.2 Recommended Approach for Case Study 15.3 �����������������������124
A.3 Recommended Approach for Case Study 15.4 �����������������������124
A.4 Recommended Approach for Case Study 15.5 �����������������������125
A.5 Recommended Approach for Case Study 15.6 �����������������������126

References������������������������������������������������������������������ 127–128

index������������������������������������������������������������������������������� 129–132
Preface

The idea of data analytics has been applied to data since the beginning of
human existence. People may say that we are just maturing in this endeavor,
but time has shown that humans are more than ready to accept data and
analyze that data to achieve greatness. When Wilbur and Orville Wright
flew in 1903, they did not do so on a whim, but gathered data to see how
and when their airplane would fly. There was a book written several decades
ago about the owner of a TV dinner brand that made a million dollars by
understanding the demographics of the time. The author saw the data on
homemakers who were tired of making dinner every night. The TV dinner
was a way to provide a solution to this issue. As I recall, the work of selling
the product was hard, but the outcome was successful. Another book that
showed data is the focus of human existence is the book Outliers: The Story
of Success by Malcolm Gladwell [Gladwell-2008]. Gladwell highlights the
idea that creativity, linked with data analysis, could lead the user and analyst
to new perspectives, pointing out the successes of this activity.
If you have not heard Gladwell’s talk on Pepsi, watch it online at (https://
www.youtube.com/watch?v=VkhFh5Ms1vc). You will forever be changed
about the use of data in any form.
Tool-centric learning has to be mitigated since “buttonology” is not the
way to really teach analytics (or any other subject for that matter – other
than those classes that teach the tool details). Therefore, this book is helpful
to an instructor of the craft. Please buy this book and use it as a classroom
study guide. Please enjoy and share the content in this book with your stu-
dents and other teachers, and feel free to provide feedback. I would love
xii • Data Analytics

to hear from you about the book and how to make it better. You can con-
tact me through my website, www.grectech.com, and I would be happy to
answer your questions. Thank you in advance for your help and support.
One last item, there are screenshots of US government websites that
are permitted under the rules governed at this site: https://www.usa.gov/
government-works. Using these sites and the information on them does not
mean this book is endorsed by any agency of the US Federal Government.
The opinions in this text are only those of the author.
Acknowledgments

In this, and every other endeavor, there are people who are the unsung
heroes who help and provide support in the background, but in the end,
are never listed on the cover of the book. Of course, without my family sup-
porting me, this would have been a failure. My wife, daughters, son-in-law,
and grandson are all part of the family unit that helped me get through this.
It is not a sprint but a marathon, and thanks to you all, I ended up finish-
ing the race. My siblings are part of this support unit and I thank them for
the consistent positive support they give me. In addition, I want to thank
my friends, like Greg, Barbara, Rich, and others, whose consistent kind-
ness and generosity make me want to share my work. My company motto
is “Learn, Offer, Value, and Educate.” You likely figured out that the first
letters of each word spell “LOVE,” and that is what makes us all a success.
I would also like to thank Jennifer Blaney and the copy editors for their
diligence and work on this product.
Other documents randomly have
different content
He. See? (Burns.) The ashes thereof will drive away the
evil spirit that molests you.
She (recoiling). And I don’t wonder.
[The Curtain falls, and rises again the next
morning. The room is full of smoke.
He (shaving). Who is that man digging in the garden?
She. Oh, that’s father. He’s digging a grave for you. It’s
become a sort of habit with him.
He. Wilt thou not tell him it is not required?
She (through the window). Father, we shan’t want it this
time. Sorry.
He. I thank thee.
She (irritable). Oh, do stop saying “thee.” And will you
please take these horrible ashes and throw them away at
once? Really, I can hardly breathe.
He. Nay, my love. They are our charm against danger. Art
not thou—aren’t you, I mean—grateful?
She. Yes, of course. But they’ve done the trick by now. We
can’t spend our whole married life in this atmosphere.
He. But indeed we must. The witch enjoined me that,
unless they were preserved, I should perish, even as
those before me.
She. Well, I’m extremely sorry, but I really can’t stand this.
(Through the window.) Father, you might bury this, will
you? (throws down the ashes). Thank you. Oh, and don’t
fill up the hole yet. We may want it after all.
CURTAIN
 Transcriber’s Notes:
Variations in spelling and hyphenation are retained.
Perceived typographical errors have been changed.
*** END OF THE PROJECT GUTENBERG EBOOK LITTLE RAYS
OF MOONSHINE ***

Updated editions will replace the previous one—the old editions

will be renamed.

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