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Data Analysis

Also: data analytics, analytics

Data analysis is the practice of interrogating data to answer a specific question, and of establishing how much weight the answer can bear.

Assessment. The hard part of this job is not technique, it is refusal: knowing which difference is too small, too noisy or too badly sourced to report at all. An analyst who can fit a model but cannot say this data will not answer that question is a liability rather than an asset.

Match the question to the method

What is being askedThe method it calls forUsual failure
How much, where, compared with when?Aggregate and compare against a prior period or a peer group. One query against the warehouse, no modelling.A headline figure that conceals two opposite movements underneath it.
Is this difference real?Quantify the uncertainty before interpreting the gap: an interval around each figure, or a test if the comparison was designed beforehand.Watching a live experiment until it crosses the line you were hoping for, then stopping.
Why did the number move?Decompose. Split the total by segment, channel or cohort until the movement localises in one place.Reading a shift in the mix as a change in behaviour when only the weights moved.
Did the change cause it?A controlled experiment, or failing that a comparison with a group the change never reached.Treating before-and-after as causal on records collected for some other purpose.
What happens next?A forecast or a fitted model, scored on periods deliberately held back from fitting.Reporting how well it reproduces data it has already seen.

Every row in that table begins with a question, which is the step most often skipped. Work that starts from a dataset and goes hunting for something interesting will always find something, because any sufficiently wide table contains a coincidence and the person hunting has no way to separate the coincidence from the finding. Fixing the question first sets the standard of proof in advance: you decide what would count as an answer, and what would count as not enough, before you know which way the evidence points. The tooling then follows the question rather than the reverse. Aggregation and comparison belong where the records already sit, because one query can do the work; pulling a million rows onto a laptop to group them is a habit worth losing early. Python becomes worth the trouble once one query can no longer express the job: reshaping between wide and long, joining against something the warehouse has never heard of, a simulation, an interval you want to compute yourself. What separates analysis from machine learning is the obligation to explain. A model may be a black box provided it predicts well on records it was never shown. An analysis may not, because somebody will act on it and somebody else will contest it. That obligation shapes the method: it is why the simpler estimate that can be checked by hand usually wins, why the working is kept rather than only the conclusion, and why the most valuable sentence in a report is often the one that narrows the claim to accounts opened after the migration and admits that the earlier ones cannot be spoken for.

In practice

Someone asks what the average customer spends. The obvious answer is the mean, and in almost any subscription business the mean describes nobody: a long tail of large accounts drags it above what the bulk of customers pay, and it lurches whenever one of those accounts renews or leaves. The median, with a couple of percentiles beside it, answers the question that was asked. Better still, plot the distribution once and show the room why a single figure was misleading in the first place, because otherwise the same misunderstanding returns next quarter with a new sponsor.

Often confused with

Data Engineering
Engineering makes the numbers arrive; analysis decides what they mean. The tell is the deliverable: a process that runs unattended on Tuesday, versus an argument a person acts on.
Machine Learning
Analysis explains something that already happened, to a human who must choose. A model estimates something that has not happened yet and is judged on accuracy, not on whether anyone followed the reasoning.

Key takeaways

  • →The question determines the method: comparison, decomposition, experiment and forecast are four different jobs and do not substitute for one another.
  • →An analysis is judged on whether it survives challenge, which is why the working matters as much as the conclusion.
  • →Recognising that the available data cannot settle the question is a skill, not an admission of failure.

Related concepts

  • Wrangling is the first stage of the data-analysis loop.

  • Visualization is how analysis is communicated.

  • Learn firstPython

    Most serious data analysis is done in Python.

  • Machine learning and data analysis share foundations and skills.

  • Modern digital marketing leans on data analysis.

  • Well-run automation is applied measurement: every workflow has a hypothesis and a metric.

  • Named together in the office field; each page links the other.

  • An experiment attributes a cause; analysis of existing data can only suggest one.

  • One contested analytical question: which touches caused the sale.

  • BI answers the recurring questions; analysis answers the specific ones.

  • The tool used when the question is whether a difference exceeds chance.

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FAQ

Do I need to code to analyse data?
You can travel further in a spreadsheet than most people admit. Code becomes unavoidable at two points: when the work has to repeat without you present, and when the data is too large or too awkward for a sheet to hold. The order is SQL before Python, because the warehouse is where a disagreement about what counts as a customer gets settled, and Python once a single query stops being enough.
How is this different from data science?
Data science is the broader label and usually implies building predictive systems that run in production. Analysis stops at the decision. In practice the titles track seniority and budget more closely than they track the work, so read the responsibilities in an advert rather than the word at the top of it.
What does a finished analysis look like?
A claim, the evidence for it, the boundary of where it holds, a recommended action, and the query or notebook that produced the figures, stored where a colleague can re-run it. With any of those five absent, expect somebody to repeat the whole thing in six months.

Sources

The primary text this definition rests on. Read it before relying on this one.

Last reviewed 26 September 2026 · Getting Digital