1

Introduction to
Business Analytics

Business Analytics, 1e
By Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, and Leida Chen

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 1.1: Overview of Business Analytics (2/7)
• Business analytics is a broad topic.
– Statistics
– Computer Science
– Information Systems
• Business analytics is widely applied.
– Marketing
– Human resource management
– Economics
– Finance
– Health, sports, and politics
• Business analytics combines qualitative reasoning with quantitative tools.
– Identify key business problems
– Translate data analysis into decisions
– Improve business performance
• Business analytics differs from data science.
– Data science: develop applications for end users
– Business analytics: data analyses for business applications

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 1.1: Overview of Business Analytics
(4/7)

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 1.2: Types of Data (2/7)
• It is not feasible to collect data that comprise a population of all
elements of interest.
– Too expensive
– It is impossible
• A sample is a subset of the population and is used for analyses.
• Traditional statistical techniques use sample information to draw
conclusions about the population.
• Cross-sectional data
– Collected by recording a characteristic of many subjects at the same point in
time
– Recording a characteristic of many subjects at the same point in time
• Time series data
– Collected over several time periods focusing on certain groups of people,
specific events, or objects
– Hourly, daily, weekly, monthly, quarterly, or annual observations
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-5
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-6
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 Solutions

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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-8
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-9
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 1.2: Types of Data (5/7)
• Structured data
– Reside in a pre-defined, row-column format
– Spreadsheet or database applications
– Enter, store, query, and analyze
– Numerical information that is objective and not open to interpretation
• Historically, companies relied mostly on structured data.
– High cost to store and process
– Performance limitations
• Unstructured data
– Do not conform to a pre-defined, row-column format
– Textual
– Multimedia content
– Do not conform to database structures
• Human- or machine-generated
– Structured human: price, income, retail sales
– Structured machine: sensors, speed cameras, web server logs
– Unstructured human: email, text, social media, presentations
– Unstructured machine: satellite images, video data, camera images

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 Exercises

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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-12
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-13
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-14
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-15
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-16
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-17
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-18
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-19
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-20
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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-21
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1.3: Variables and Scales of Measurement

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 1.4: Data Sources and File Formats (1/1)
• 90% of the data in the world today was created in the last two years.
• There are standard file formats.
– Fixed-width format: each column starts and ends in the same place in every row
– Delimited format: a delimiter separates fields, typically a comma (csv file)
– Extensible Markup Language (XML): structured data, each piece enclosed in a pair
of tags, gives information on what the data are
– HyperText Markup Language (HTML): structured data with tags, gives information on
how to display the data
– JavaScript Object Notation (JSON): alternative to XML, transmit human-readable
data in compact files, not as verbose as XML, supports wide range of data types,
parsing is faster

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 BUSINESS ANALYTICS, 1e | Jaggia, Kelly, 1-24
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 8,12, and 7 characters/column

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 Exercises

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