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Monday, 1 December 2025

what is Data Analytics , exaplin with examples

 Data Analytics is the process of examining raw data to find trends, patterns, and insights. In simple terms, it involves taking a mess of unorganized information (numbers, customer feedback, sales logs) and turning it into meaningful answers that help businesses or individuals make smarter decisions.

The 4 Types of Data Analytics

Data analytics is typically broken down into four stages, often described by the questions they answer.

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  1. Descriptive Analytics (What happened?)

    • Goal: Summarizes past data to understand what has already occurred.

    • Example: A YouTube content creator looks at their dashboard and sees they got 10,000 views last month. This is just a factual summary of the past.

  2. Diagnostic Analytics (Why did it happen?)

    • Goal: Digs deeper into data to find the root cause of an event.

    • Example: The creator notices the views dropped by 50% in the second week. They check the data and see that they didn't upload any videos that week. The cause (no uploads) explains the event (drop in views).

  3. Predictive Analytics (What is likely to happen?)

    • Goal: Uses historical data to forecast future outcomes.

    • Example: Based on previous trends, the creator predicts that if they upload a video about "AI Tools" next Tuesday (a popular topic), they will likely get 15,000 views.

  4. Prescriptive Analytics (What should we do?)

    • Goal: Suggests the best course of action to achieve a desired result.

    • Example: An AI tool analyzes the channel's audience data and tells the creator: "To maximize growth, upload your video at 6:00 PM on Tuesday and use the keyword 'Free AI Tools' in the title."


Real-World Examples of Data Analytics

Here is how major industries use data analytics in ways you likely encounter every day:

1. Entertainment (Netflix & Spotify)

  • The Problem: With thousands of movies and songs, users get overwhelmed and might cancel their subscription if they can't find something they like.

  • The Analytics: Netflix analyzes your watch history (what you watched, when you paused, what you abandoned).

  • The Result: They use Predictive Analytics to recommend a specific movie with a "98% Match" label, keeping you engaged on the platform.

2. E-Commerce (Amazon)

  • The Problem: Amazon needs to deliver millions of packages as fast as possible without wasting money on storage.

  • The Analytics: They analyze purchasing patterns by region. For example, they know that people in Chicago buy more heavy coats in October.

  • The Result: They use Prescriptive Analytics to move stock of winter coats to Chicago warehouses before the customers even place the orders, ensuring "Same-Day Delivery."

3. Transportation (Uber & Ola)

  • The Problem: Balancing the number of available drivers with the number of passengers requesting rides.

  • The Analytics: The app analyzes real-time data on ride requests, traffic, and weather conditions.

  • The Result: If it starts raining and demand spikes, the algorithm applies Surge Pricing (Diagnostic & Prescriptive). This encourages more drivers to get on the road to meet the high demand.

4. Healthcare

  • The Problem: Preventing patients from getting sick again after leaving the hospital.

  • The Analytics: Hospitals analyze patient records, blood pressure history, and medication adherence.

  • The Result: Doctors can identify which patients are at "high risk" of returning within 30 days and provide them with extra home-care support proactively.

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