Following are some data-collection considerations to keep in mind for your analysis:
How the data will be collected
Decide if you will collect the data using your own resources or receive (and possibly purchase it) from another party. Data that you collect yourself is called first-party data.
Data sources
If you don’t collect the data using your own resources, you might get data from second-party or third-party data providers. Second-party data is collected directly by another group and then sold. Third-party data is sold by a provider that didn’t collect the data themselves. Third-party data might come from a number of different sources.
Solving your business problem
Datasets can show a lot of interesting information. But be sure to choose data that can actually help solve your problem question. For example, if you are analyzing trends over time, make sure you use time series data — in other words, data that includes dates.
How much data to collect
If you are collecting your own data, make reasonable decisions about sample size. A random sample from existing data might be fine for some projects. Other projects might need more strategic data collection to focus on certain criteria. Each project has its own needs.
Time frame
If you are collecting your own data, decide how long you will need to collect it, especially if you are tracking trends over a long period of time. If you need an immediate answer, you might not have time to collect new data. In this case, you would need to use historical data that already exists.
Use the flowchart below if data collection relies heavily on how much time you have:
When you think about the word “format,” a lot of things might come to mind. Think of an advertisement for your favorite store. You might find it in the form of a print ad, a billboard, or even a commercial. The information is presented in the format that works best for you to take it in. The format of a dataset is a lot like that, and choosing the right format will help you manage and use your data in the best way possible.
Data format examples
As with most things, it is easier for definitions to click when we can pair them with real life examples. Review each definition first and then use the examples to lock in your understanding of each data format.
Data is everywhere and it can be stored in lots of ways. Two general categories of data are:
Structured data: Organized in a certain format, such as rows and columns.
Unstructured data: Not organized in any easy-to-identify way.
For example, when you rate your favorite restaurant online, you’re creating structured data. But when you use Google Earth to check out a satellite image of a restaurant location, you’re using unstructured data.
Here’s a refresher on the characteristics of structured and unstructured data:
Structured data
As we described earlier, structured data is organized in a certain format. This makes it easier to store and query for business needs. If the data is exported, the structure goes along with the data.
Unstructured data
Unstructured data can’t be organized in any easily identifiable manner. And there is much more unstructured than structured data in the world. Video and audio files, text files, social media content, satellite imagery, presentations, PDF files, open-ended survey responses, and websites all qualify as types of unstructured data.
The fairness issue
The lack of structure makes unstructured data difficult to search, manage, and analyze. But recent advancements in artificial intelligence and machine learning algorithms are beginning to change that. Now, the new challenge facing data scientists is making sure these tools are inclusive and unbiased. Otherwise, certain elements of a dataset will be more heavily weighted and/or represented than others. And as you’re learning, an unfair dataset does not accurately represent the population, causing skewed outcomes, low accuracy levels, and unreliable analysis.
This reading introduces you to data modeling and different types of data models. Data models help keep data consistent and enable people to map out how data is organized. A basic understanding makes it easier for analysts and other stakeholders to make sense of their data and use it in the right ways.
Important note: As a junior data analyst, you won’t be asked to design a data model. But you might come across existing data models your organization already has in place.
What is data modeling?
Data modeling is the process of creating diagrams that visually represent how data is organized and structured. These visual representations are called data models. You can think of data modeling as a blueprint of a house. At any point, there might be electricians, carpenters, and plumbers using that blueprint. Each one of these builders has a different relationship to the blueprint, but they all need it to understand the overall structure of the house. Data models are similar; different users might have different data needs, but the data model gives them an understanding of the structure as a whole.
Levels of data modeling
Each level of data modeling has a different level of detail.
comparison of data models
Data-modeling techniques
There are a lot of approaches when it comes to developing data models, but two common methods are the Entity Relationship Diagram (ERD) and the Unified Modeling Language (UML) diagram. ERDs are a visual way to understand the relationship between entities in the data model. UML diagrams are very detailed diagrams that describe the structure of a system by showing the system’s entities, attributes, operations, and their relationships. As a junior data analyst, you will need to understand that there are different data modeling techniques, but in practice, you will probably be using your organization’s existing technique.
data modeling techniques
Data analysis and data modeling
Data modeling can help you explore the high-level details of your data and how it is related across the organization’s information systems. Data modeling sometimes requires data analysis to understand how the data is put together; that way, you know how to map the data. And finally, data models make it easier for everyone in your organization to understand and collaborate with you on your data. This is important for you and everyone on your team!
In this reading, you will explore the basics of Boolean logic and learn how to use multiple conditions in a Boolean statement. These conditions are created with Boolean operators, including AND, OR, and NOT. These operators are similar to mathematical operators and can be used to create logical statements that filter your results. Data analysts use Boolean statements to do a wide range of data analysis tasks, such as creating queries for searches and checking for conditions when writing programming code.
Boolean logic example
Imagine you are shopping for shoes, and are considering certain preferences:
You will buy the shoes only if they are pink and grey
You will buy the shoes if they are entirely pink or entirely grey, or if they are pink and grey
You will buy the shoes if they are grey, but not if they have any pink
Below are Venn diagrams that illustrate these preferences. AND is the center of the Venn diagram, where two conditions overlap. OR includes either condition. NOT includes only the part of the Venn diagram that doesn’t contain the exception.
The AND operator
Your condition is “If the color of the shoe has any combination of grey and pink, you will buy them.” The Boolean statement would break down the logic of that statement to filter your results by both colors. It would say “IF (Color=”Grey”) AND (Color=”Pink”) then buy them.” The AND operator lets you stack multiple conditions.
Below is a simple truth table that outlines the Boolean logic at work in this statement. In the Color is Grey column, there are two pairs of shoes that meet the color condition. And in the Color is Pink column, there are two pairs that meet that condition. But in the If Grey AND Pink column, there is only one pair of shoes that meets both conditions. So, according to the Boolean logic of the statement, there is only one pair marked true. In other words, there is one pair of shoes that you can buy.
The OR operator
The OR operator lets you move forward if either one of your two conditions is met. Your condition is “If the shoes are grey or pink, you will buy them.” The Boolean statement would be “IF (Color=”Grey”) OR (Color=”Pink”) then buy them.” Notice that any shoe that meets either the Color is Grey or the Color is Pink condition is marked as true by the Boolean logic. According to the truth table below, there are three pairs of shoes that you can buy.
The NOT operator
Finally, the NOT operator lets you filter by subtracting specific conditions from the results. Your condition is “You will buy any grey shoe except for those with any traces of pink in them.” Your Boolean statement would be “IF (Color=“Grey”) AND (Color=NOT “Pink”) then buy them.” Now, all of the grey shoes that aren’t pink are marked true by the Boolean logic for the NOT Pink condition. The pink shoes are marked false by the Boolean logic for the NOT Pink condition. Only one pair of shoes is excluded in the truth table below.
The power of multiple conditions
For data analysts, the real power of Boolean logic comes from being able to combine multiple conditions in a single statement. For example, if you wanted to filter for shoes that were grey or pink, and waterproof, you could construct a Boolean statement such as: “IF ((Color = “Grey”) OR (Color = “Pink”)) AND (Waterproof=“True”).” Notice that you can use parentheses to group your conditions together.
Whether you are doing a search for new shoes or applying this logic to your database queries, Boolean logic lets you create multiple conditions to filter your results. And now that you know a little more about how Boolean logic is used, you can start using it!
What is data transformation?
In this reading, you will explore how data is transformed and the differences between wide and long data. Data transformation is the process of changing the data’s format, structure, or values. As a data analyst, there is a good chance you will need to transform data at some point to make it easier for you to analyze it.
Data transformation usually involves:
Adding, copying, or replicating data
Deleting fields or records
Standardizing the names of variables
Renaming, moving, or combining columns in a database
Joining one set of data with another
Saving a file in a different format. For example, saving a spreadsheet as a comma separated values (CSV) file.
Why transform data?
Goals for data transformation might be:
Data organization: better organized data is easier to use
Data compatibility: different applications or systems can then use the same data
Data migration: data with matching formats can be moved from one system to another
Data merging: data with the same organization can be merged together
Data enhancement: data can be displayed with more detailed fields
Data comparison: apples-to-apples comparisons of the data can then be made
Data transformation example: data merging
Mario is a plumber who owns a plumbing company. After years in the business, he buys another plumbing company. Mario wants to merge the customer information from his newly acquired company with his own, but the other company uses a different database. So, Mario needs to make the data compatible. To do this, he has to transform the format of the acquired company’s data. Then, he must remove duplicate rows for customers they had in common. When the data is compatible and together, Mario’s plumbing company will have a complete and merged customer database.
Data transformation example: data organization (long to wide)
To make it easier to create charts, you may also need to transform long data to wide data. Consider the following example of transforming stock prices (collected as long data) to wide data.
Long data is data where each row contains a single data point for a particular item. In the long data example below, individual stock prices (data points) have been collected for Apple (AAPL), Amazon (AMZN), and Google (GOOGL) (particular items) on the given dates.
Wide data is data where each row contains multiple data points for the particular items identified in the columns.
With data transformed to wide data, you can create a chart comparing how each company’s stock changed over the same period of time.
You might notice that all the data included in the long format is also in the wide format. But wide data is easier to read and understand. That is why data analysts typically transform long data to wide data more often than they transform wide data to long data. The following table summarizes when each format is preferred:
What is data anonymization?
You have been learning about the importance of privacy in data analytics. Now, it is time to talk about data anonymization and what types of data should be anonymized. Personally identifiable information, or PII, is information that can be used by itself or with other data to track down a person’s identity.
Data anonymization is the process of protecting people’s private or sensitive data by eliminating that kind of information. Typically, data anonymization involves blanking, hashing, or masking personal information, often by using fixed-length codes to represent data columns, or hiding data with altered values.
Your role in data anonymization
Organizations have a responsibility to protect their data and the personal information that data might contain. As a data analyst, you might be expected to understand what data needs to be anonymized, but you generally wouldn’t be responsible for the data anonymization itself. A rare exception might be if you work with a copy of the data for testing or development purposes. In this case, you could be required to anonymize the data before you work with it.
What types of data should be anonymized?
Healthcare and financial data are two of the most sensitive types of data. These industries rely a lot on data anonymization techniques. After all, the stakes are very high. That’s why data in these two industries usually goes through de-identification, which is a process used to wipe data clean of all personally identifying information.
Data anonymization is used in just about every industry. That is why it is so important for data analysts to understand the basics. Here is a list of data that is often anonymized:
Telephone numbers
Names
License plates and license numbers
Social security numbers
IP addresses
Medical records
Email addresses
Photographs
Account numbers
For some people, it just makes sense that this type of data should be anonymized. For others, we have to be very specific about what needs to be anonymized. Imagine a world where we all had access to each other’s addresses, account numbers, and other identifiable information. That would invade a lot of people’s privacy and make the world less safe. Data anonymization is one of the ways we can keep data private and secure!
Just like data privacy, open data is a widely debated topic in today’s world. Data analysts think a lot about open data, and as a future data analyst, you need to understand the basics to be successful in your new role.
What is open data?
In data analytics, open data is part of data ethics, which has to do with using data ethically. Openness refers to free access, usage, and sharing of data. But for data to be considered open, it has to:
Be available and accessible to the public as a complete dataset
Be provided under terms that allow it to be reused and redistributed
Allow universal participation so that anyone can use, reuse, and redistribute the data
Data can only be considered open when it meets all three of these standards.
The open data debate: What data should be publicly available?
One of the biggest benefits of open data is that credible databases can be used more widely. Basically, this means that all of that good data can be leveraged, shared, and combined with other data. This could have a huge impact on scientific collaboration, research advances, analytical capacity, and decision-making. But it is important to think about the individuals being represented by the public, open data, too.
Third-party data is collected by an entity that doesn’t have a direct relationship with the data. You might remember learning about this type of data earlier. For example, third parties might collect information about visitors to a certain website. Doing this lets these third parties create audience profiles, which helps them better understand user behavior and target them with more effective advertising.
Personal identifiable information (PII) is data that is reasonably likely to identify a person and make information known about them. It is important to keep this data safe. PII can include a person’s address, credit card information, social security number, medical records, and more.
Everyone wants to keep personal information about themselves private. Because third-party data is readily available, it is important to balance the openness of data with the privacy of individuals.
Databases enable analysts to manipulate, store, and process data. This helps them search through data a lot more efficiently to get the best insights.
A relational database is a database that contains a series of tables that can be connected to show relationships. Basically, they allow data analysts to organize and link data based on what the data has in common.
In a non-relational table, you will find all of the possible variables you might be interested in analyzing all grouped together. This can make it really hard to sort through. This is one reason why relational databases are so common in data analysis: they simplify a lot of analysis processes and make data easier to find and use across an entire database.
Normalization is a process of organizing data in a relational database. For example, creating tables and establishing relationships between those tables. It is applied to eliminate data redundancy, increase data integrity, and reduce complexity in a database.
Tables in a relational database are connected by the fields they have in common. You might remember learning about primary and foreign keys before. As a quick refresher, a primary key is an identifier that references a column in which each value is unique. In other words, it’s a column of a table that is used to uniquely identify each record within that table. The value assigned to the primary key in a particular row must be unique within the entire table. For example, if customer_id is the primary key for the customer table, no two customers will ever have the same customer_id.
By contrast, a foreign key is a field within a table that is a primary key in another table. A table can have only one primary key, but it can have multiple foreign keys. These keys are what create the relationships between tables in a relational database, which helps organize and connect data across multiple tables in the database.
Some tables don’t require a primary key. For example, a revenue table can have multiple foreign keys and not have a primary key. A primary key may also be constructed using multiple columns of a table. This type of primary key is called a composite key. For example, if customer_id and location_id are two columns of a composite key for a customer table, the values assigned to those fields in any given row must be unique within the entire table.
Databases use a special language to communicate called a query language. Structured Query Language (SQL) is a type of query language that lets data analysts communicate with a database. So, a data analyst will use SQL to create a query to view the specific data that they want from within the larger set. In a relational database, data analysts can write queries to get data from the related tables. SQL is a powerful tool for working with databases — which is why you are going to learn more about it coming up!
Data analytics, by design, is a field that thrives on collecting and organizing data. In this reading, you are going to learn about how to analyze and thoroughly understand every aspect of your data.
Take a look at any data you find. What is it? Where did it come from? Is it useful? How do you know? This is where metadata comes in to provide a deeper understanding of the data. To put it simply, metadata is data about data. In database management, it provides information about other data and helps data analysts interpret the contents of the data within a database.
Regardless of whether you are working with a large or small quantity of data, metadata is the mark of a knowledgeable analytics team, helping to communicate about data across the business and making it easier to reuse data. In essence, metadata tells the who, what, when, where, which, how, and why of data.
Elements of metadata
Before looking at metadata examples, it is important to understand what type of information metadata typically provides.
Title and description
What is the name of the file or website you are examining? What type of content does it contain?
Tags and categories
What is the general overview of the data that you have? Is the data indexed or described in a specific way?
Who created it and when
Where did the data come from, and when was it created? Is it recent, or has it existed for a long time?
Who last modified it and when
Were any changes made to the data? If yes, were the modifications recent?
Who can access or update it
Is this dataset public? Are special permissions needed to customize or modify the dataset?
Examples of metadata
In today’s digital world, metadata is everywhere, and it is becoming a more common practice to provide metadata on a lot of media and information you interact with. Here are some real-world examples of where to find metadata:
Photos
Whenever a photo is captured with a camera, metadata such as camera filename, date, time, and geolocation are gathered and saved with it.
Emails
When an email is sent or received, there is lots of visible metadata such as subject line, the sender, the recipient and date and time sent. There is also hidden metadata that includes server names, IP addresses, HTML format, and software details.
Spreadsheets and documents
Spreadsheets and documents are already filled with a considerable amount of data so it is no surprise that metadata would also accompany them. Titles, author, creation date, number of pages, user comments as well as names of tabs, tables, and columns are all metadata that one can find in spreadsheets and documents.
Websites
Every web page has a number of standard metadata fields, such as tags and categories, site creator’s name, web page title and description, time of creation and any iconography.
Digital files
Usually, if you right click on any computer file, you will see its metadata. This could consist of file name, file size, date of creation and modification, and type of file.
Books
Metadata is not only digital. Every book has a number of standard metadata on the covers and inside that will inform you of its title, author’s name, a table of contents, publisher information, copyright description, index, and a brief description of the book’s contents.
Data as you know it
Knowing the content and context of your data, as well as how it is structured, is very valuable in your career as a data analyst. When analyzing data, it is important to always understand the full picture. It is not just about the data you are viewing, but how that data comes together. Metadata ensures that you are able to find, use, preserve, and reuse data in the future. Remember, it will be your responsibility to manage and make use of data in its entirety; metadata is as important as the data itself.
The battle between security and data analytics
Data security means protecting data from unauthorized access or corruption by putting safety measures in place. Usually the purpose of data security is to keep unauthorized users from accessing or viewing sensitive data. Data analysts have to find a way to balance data security with their actual analysis needs. This can be tricky-- we want to keep our data safe and secure, but we also want to use it as soon as possible so that we can make meaningful and timely observations.
In order to do this, companies need to find ways to balance their data security measures with their data access needs.
Luckily, there are a few security measures that can help companies do just that. The two we will talk about here are encryption and tokenization.
Encryption uses a unique algorithm to alter data and make it unusable by users and applications that don’t know the algorithm. This algorithm is saved as a “key” which can be used to reverse the encryption; so if you have the key, you can still use the data in its original form.
Tokenization replaces the data elements you want to protect with randomly generated data referred to as a “token.” The original data is stored in a separate location and mapped to the tokens. To access the complete original data, the user or application needs to have permission to use the tokenized data and the token mapping. This means that even if the tokenized data is hacked, the original data is still safe and secure in a separate location.
Encryption and tokenization are just some of the data security options out there. There are a lot of others, like using authentication devices for AI technology.
As a junior data analyst, you probably won’t be responsible for building out these systems. A lot of companies have entire teams dedicated to data security or hire third party companies that specialize in data security to create these systems. But it is important to know that all companies have a responsibility to keep their data secure, and to understand some of the potential systems your future employer might use.