Statistical analysis is the science of processing large amounts of data to uncover patterns and trends. Statistical analysis is useful for predicting future trends, identifying top-selling products and determining the lowest-performing employees.
There are four basic steps to statistical analysis. First, identify the problem by asking a question answerable through statistical data. Next, implement a data collection process, such as interviews, observations or experimentation. Organize the data collected into a manageable form, such as a graph. Then, analyze and summarize the data, emphasizing trends and looking for strengths and weaknesses. Finally, interpret the data to find an answer to the original problem.