Unit 5: Deriving Data Insights
This unit builds on the last unit by covering data distribution techniques like the mean, median, and mode, how frequency tables can be used to organize and summarize data, and how to analyze a frequency distribution, which displays the number of times an event occurs in a set of data. Frequency tables are useful for describing the number of occurrences for a specific event. Data analysts rely on frequency tables to identify trends within data. One common method for organizing data is to construct a frequency distribution. For example, a company may ask you to conduct an employee satisfaction survey. Once the survey responses are complete, frequency tables and distributions display employees' responses by age, position, race, gender, and other categories determined by the company. Companies use this data in many ways – for example, frequency tables based on age can reveal the numbers of employees retiring soon, which lets managers prepare for shortages and job vacancies. Frequency distribution is a way to tabulate and present data on a visual scale and compile and organize data meaningfully to help decision-makers glance at data to see the big picture quickly.
Completing this unit should take you approximately 5 hours.
Upon successful completion of this unit, you will be able to:
- describe the mean, median, and mode of a set of data;
- analyze data presented in frequency tables, frequency distributions, and graphics;
- analyze relative frequencies and the relationship with frequency tables; and
- interpret cumulative frequency distribution and explain its use in decision-making.
5.1: Conducting Data Analysis
Data analysis is a method to collect and organize data to gain insightful information. It is the process of inspecting, cleaning, transforming, and modeling data. Data analysis aims to reveal insightful information, communicate conclusions, and provide recommendations for decision-making.
5.1.1: Frequency Tables
"Frequency" is the number of times an event or a value occurs in a dataset. A frequency table lists each item and the number of times the item appears. Read this module on frequency, frequency tables, and the levels of measurement (nominal, ordinal, interval, and ratio scales). Pay attention to each frequency table exercise. After each exercise, use the definitions to identify and explain its level of measurement.
Watch this video on collecting data into frequency tables. Focus on how to collect, tally, and display data. Take notes and use what you learned to answer each question in the video.
5.1.2: Frequency Distributions
Read this article, and pay attention to the definition of frequency graphs and charts. Imagine you are an analyst. How would you explain the difference between a histogram and a bar chart? Which graph would you use to display quantitative and qualitative data?
5.1.3: Graphic Presentations
Watch this video to learn how to choose the appropriate graphic presentation. Take notes on the recommendations given that support using each type of presentation. Remember, your ability to apply the correct graph or chart improves business presentations and enhances the data-driven decision-making process.
Every analyst should provide quality graphs. Graphs present a visual aid to reviewers and decision-makers in a manner that is easy to understand. This reduces confusion and misinterpretation of data results. Therefore, graph presentations present statistical data in a visually attractive way in comparison to frequency tables.
5.2: Charts, Graphs, and Tables
Charts and graphs are also known as visual (graphic) presentations. Businesses use them to make sense of data and convey information. Remember, not everyone is a data expert. Therefore, focus on providing a visual presentation decision-makers can reference and understand. Remember, simplicity is key to an excellent business presentation.
Read this article on visual aids. Pay attention to the purpose, emphasis, support, and clarity section. Take notes of techniques to improve presentations using clarity and simplicity. Also, focus on how to prepare visual aids.
Think back to when you were at school, an event, or a business meeting. Remember the types of visual aids that were used. Did the presentation meet the visual aid criteria? Why or Why not? How might presentations that do not meet the criteria affect the audience's ability to learn?
Tables and charts are vital to effective business presentations. Read this article to learn how to paste, insert, and link Microsoft Excel charts and tables in Microsoft Powerpoint. Keep in mind that other presentation and spreadsheet tools may have the same integration features.
Read this article to learn how to paste, insert, and link charts in Microsoft Word and Powerpoint products and complete the Skills Refresher for each tool. Now you know to assess data using levels of measurement, frequency distribution, and frequency tables. Remember, graphic presentations (visual aids) are equally essential for proving effective business presentations. Make a practice of using the visual aid criteria in this unit to provide straightforward and easy-to-read business presentations.
Study Guide: Unit 5
We recommend reviewing this Study Guide before taking the Unit 5 Assessment.
Unit 5 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.