Page 63 - CITP Review

Data analysis and reporting

Data analytics

Data analytics refers to the analysis of raw data sets with the express goal of reaching conclusions about
the information therein. Today, most data analytics involves the use of specialized tools and software.

Types
There are three main types of data analytics: quantitative analysis, descriptive statistics, and data
visualization.

Quantitative analysis

Quantitative analysis is the broad term used for the collection, organization, analysis, interpretation, and
presentation of data.

Descriptive statistics
Descriptive statistics is at the heart of all quantitative analysis; it’s used to describe or summarize data in
ways that are meaningful and useful, leveraging the following four measures:

 Frequency (count, percent)
 Central tendency (the mean/average, the median/middle value in a data set)
 Dispersion (variability or spread)
 Position (percentile, quartile, rank)

Data visualization

Data visualization involves the creation and study of the visual representation of data. It helps people
understand data using visual analysis and can be viewed as a modern equivalent of visual
communication.

To present complex information in a more accessible, understandable manner, data visualization
translates numerical data into points or lines in graphs and plots or otherwise uses graphics and other
visual media to convey quantitative information. The visual rather than simply numerical presentation
allows users to more easily understand the data presented.

The following are data visualization categories:

 Time series. A single variable is captured over a period of time, such as the prime interest rate over a
25-year period.
 Ranking. Categorical subdivisions are ranked in ascending or descending order, such as a ranking of
sales performance by sales territory during a single period.
 Part-to-whole. Categorical subdivisions are measured as a ratio to the whole (i.e., a percentage out of
100%), such as market share.

© 2019 Association of International Certified Professional Accountants. All rights reserved. 2-17