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Essential Statistics for Non-STEM Data Analysts
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Contributors
About the author
Rongpeng Li is a data science instructor and a senior data scientist at Galvanize, Inc. He
has previously been a research programmer at Information Sciences Institute, working on
knowledge graphs and artificial intelligence. He has also been the host and organizer of
the Data Analysis Workshop Designed for Non-STEM Busy Professionals at LA.
Yidan Pan obtained her PhD in system, synthetic, and physical biology from Rice
University. Her research interest is profiling mutagenesis at genomic and transcriptional
levels with molecular biology wet labs, bioinformatics, statistical analysis, and machine
learning models. She believes that this book will give its readers a lot of practical skills for
data analysis.
Preface
2
Essential Statistics for Data Assessment
Classifying numerical and Understanding mean, median,
categorical variables 26 and mode 30
Distinguishing between numerical and Mean30
categorical variables 26 Median31
Mode32
ii Table of Contents
3
Visualization with Statistical Graphs
Basic examples with the plotting72
Python Matplotlib package 54 Example 1 – preparing data to fit the
Elements of a statistical graph 54 plotting
Exploring important types of plotting function API 73
in Matplotlib 56 Example 2 – combining analysis with
plain plotting 76
Advanced visualization
customization65 Presentation-ready plotting tips 78
Customizing the geometry 65 Use styling 78
Customizing the aesthetics 70 Font matters a lot 80
5
Common Probability Distributions
Understanding important distribution 121
concepts in probability 110 Uniform distribution 122
Events and sample space 110 Exponential distribution 122
The probability mass function and Normal distribution 124
the probability density function 111
Subjective probability and Learning about joint and
empirical probability 116 conditional distribution 126
Independency and conditional
Understanding common distribution127
discrete probability
distributions116 Understanding the power law
Bernoulli distribution 117 and black swan 127
Binomial distribution 118 The ubiquitous power law 128
Poisson distribution 120 Be aware of the black swan 129
6
Parametric Estimation
Understanding the concepts of Applying the maximum
parameter estimation and the likelihood approach with
features of estimators 132 Python141
Evaluation of estimators 133 Likelihood function 141
MLE for uniform distribution
Using the method of moments boundaries144
to estimate parameters 136 MLE for modeling noise 145
Example 1 – the number of 911 phone MLE and the Bayesian theorem 155
calls in a day 137
Example 2 – the bounds of Summary160
uniform distribution 139
iv Table of Contents
7
Statistical Hypothesis Testing
An overview of hypothesis The paradigm 180
testing162 T-test181
Understanding P-values, test statistics, The normality hypothesis test 185
and significance levels 164 The goodness-of-fit test 189
A simple ANOVA model 192
Making sense of confidence Stationarity tests for time series 197
intervals and P-values from Examples of stationary and non-
visual examples 167 stationary time series 198
Calculating the P-value from discrete
events168 Appreciating A/B testing with a
Calculating the P-value from the real-world example 206
continuous PDF 170 Conducting an A/B test 206
Significance levels in t-distribution 174 Randomization and blocking 207
The power of a hypothesis test 179 Common test statistics 210
Common mistakes in A/B tests 211
Using SciPy for common
hypothesis testing 180 Summary212
9
Statistics for Classification
Understanding how a logistic Evaluating the performance of the
regression classifier works 248 logistic regression classifier 256
The formulation of a
Building a naïve Bayes classifier
classification problem 250
from scratch 259
Implementing logistic regression
from scratch 251 Underfitting, overfitting, and
cross-validation267
Summary272
10
Statistics for Tree-Based Methods
Overviewing tree-based Evaluating decision tree performance 287
methods for classification tasks274
Exploring regression tree 289
Growing and pruning a
classification tree 278 Using tree models in scikit-learn296
Understanding how splitting works 279 Summary298
11
Statistics for Ensemble Methods
Revisiting bias, variance, and Understanding and using the
memorization300 boosting module 311
Understanding the Exploring random forests with
bootstrapping and bagging scikit-learn316
techniques303 Summary 318
vi Table of Contents
Section 4: Appendix
12
A Collection of Best Practices
Understanding the importance Example 1 – COVID-19 trend 326
of data quality 322 Example 2 – Bar plot cropping 328
Understanding why data can be Fighting against false arguments 334
problematic322
Summary335
Avoiding the use of misleading
graphs326
13
Exercises and Projects
Exercises338 Methods351
Chapter 1 – Fundamentals of Data Chapter 11 – Statistics for Ensemble
Collection, Cleaning, and Preprocessing 338 Methods353
Chapter 2 – Essential Statistics for Data
Project suggestions 355
Assessment339
Chapter 3 – Visualization with Non-tabular data 355
Statistical Graphs 340 Real-time weather data 356
Chapter 4 – Sampling and Inferential Goodness of fit for discrete
Statistics341 distributions358
Chapter 5 – Common Probability Building a weather prediction web app 359
Distributions342 Building a typing suggestion app 360
Chapter 6 – Parameter Estimation 344
Chapter 7 – Statistical Hypothesis Further reading 360
Testing346 Textbooks361
Chapter 8 – Statistics for Regression 348 Visualization361
Chapter 9 – Statistics for Classification 349 Exercising your mind 361
Chapter 10 – Statistics for Tree-Based
Summary362
Other Books You May Enjoy
Index
Preface
Data science has been trending for several years, and demand in the market is now really
on the increase as companies, governments, and non-profit organizations have shifted
toward a data-driven approach.
Many new graduates, as well as people who have been working for years, are now trying
to add data science as a new skill to their resumes. One significant barrier for stepping
into the realm of data science is statistics, especially for people who do not have a science,
technology, engineering, and mathematics (STEM) background or left the classroom
years ago. This book is designed to fill the gap for those people. While writing this book,
I tried to explore the scattered concepts in a dot-connecting fashion such that readers
feel that new concepts and techniques are needed rather than simply being created from
thin air.
By the end of this book, you will be able to comfortably deal with common statistical
concepts and computation in data science, from fundamental descriptive statistics and
inferential statistics to advanced topics, such as statistics using tree-based methods and
ensemble methods. This book is also particularly handy if you are preparing for a data
scientist or data analyst job interview. The nice interleaving of conceptual contents and
code examples will prepare you well.
If you are using the digital version of this book, we advise you to type the code yourself
or access the code via the GitHub repository (link available in the next section). Doing
so will help you avoid any potential errors related to the copying and pasting of code.
Conventions used
There are a number of text conventions used throughout this book.
Code in text: Indicates code words in text, database table names, folder names,
filenames, file extensions, pathnames, dummy URLs, user input, and Twitter handles.
Here is an example: " You can use plt.rc('ytick', labelsize='x-
medium')."
x Preface
import pandas as pd
df = pd.read_excel("PopulationEstimates.xls",skiprows=2)
df.head(8) margin: 0;
Bold: Indicates a new term, an important word, or words that you see onscreen. For
example, words in menus or dialog boxes appear in the text like this. Here is an example: "
seaborn is another popular Python visualization library. With it, you can write less code to
obtain more professional-looking plots."
Get in touch
Feedback from our readers is always welcome.
General feedback: If you have questions about any aspect of this book, mention the book
title in the subject of your message and email us at [email protected].
Errata: Although we have taken every care to ensure the accuracy of our content, mistakes
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Preface xi
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Section 1:
Getting Started
with Statistics for
Data Science
In this section, you will learn how to preprocess data and inspect distributions and
correlations from a statistical perspective.
This section consists of the following chapters:
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