The Importance of Statistics and Probability in Data Science
The trendiest job in the world right now is that of a data scientist. People also refer to it as 21st-century sexist employment. Probability and statistics are important concepts to understand if you want to work in data science.
They are necessary to enter the field of data science. It is stated that statistics and probability knowledge are prerequisites for learning data science. Usually, people aren’t very interested in these subjects.
Here are some fundamental concepts in probability and statistics related to data science.
The most crucial aspect of data science is prediction and the search for various data structures. They are significant because they can manage a variety of analytical activities. Read more in this Springer essay about the significance of statistics.
As a result, statistics is a set of concepts used to gather knowledge about the data so that decisions can be made. It reveals the information’s hidden meaning.
In various machine learning predictive algorithms, probability and statistics are incorporated. They are useful in determining how much data is trustworthy, etc.
The Central Limit Theorem
It is a theory that has a significant impact on statistics. It claims that if you have the population’s mean and standard deviation and large randomised samples are drawn from the population with replacement, the distribution of the samples will be normally distributed.
Terms Used in Statistics
- Population – The location or source where the information must be fetched or gathered.
- Variable – A data point that can be either a measurable quantity or a number.
- Sample – A subset of the population is what is meant by this term.
- Statistical Parameter – This term refers to the quantity that determines a probability distribution’s mean, median, and mode.
Statistical Analysis
The science of statistical analysis involves investigating a huge dataset to uncover various hidden patterns and trends. These types of analyses are used to all types of data, such as research, data from various industries, etc., in order to make model-based judgements. Two main categories of statistical analysis exist:
- Quantitative Analysis: This kind of analysis is characterised as the science of gathering and analysing data using graphs and figures to look for underlying hidden trends.
- Qualitative analysis: A statistical method that uses text and other types of media to provide the general information.
Central Tendency Measures
Central Tendency Measure is described as a single value that seeks to investigate a collection of data by identifying the core point within the collection. It is also known as a central location measure and falls under the category of summary statistics.
- Mean – This statistic is calculated by adding up all the values in the dataset and dividing the result by the total number of values in the data.
- Median – The median value within the dataset, in terms of magnitude. It is regarded as being over mean since it is least affected by outliers and data skewness.
- Mode – This is the dataset’s most prevalent value.
Skewness
the deformed or skewed curve that leans left or right is skewness. The Skewness of a statistical distribution, which indicates whether the data is concentrated on one side, is asymmetry. It provides information about the data’s distribution.
Skewness is split into two categories:
- Positive Skewness: Positive skewness is when the mean is greater than the median or the mode. In this instance, the tail is skewed to the right, meaning that outliers are skewed to the right.
- Negative skewness: it happens when the mean, median, and mode are all negative. The outliers are skewed to the left, which causes the tail to be skewed to the left.
Probability
Most statistics require a foundation and language in probability. It can also be described as the occurrence of a specific result when its significance in day-to-day living is calculated. Problems in data science cannot be solved without understanding probability. It is regarded as a key component of predictive analytics.
Two Types of Hypothesis:
- Null Hypothesis: The null hypothesis postulates that there are no discernible differences between the populations being studied.
- Alternative Hypothesis: A plausible alternative hypothesis.
The probability value, also referred to as the p-value in statistical hypothesis testing, is the likelihood of receiving outcomes that are at least as favourable as those that have already been observed, under the presumption that the null hypothesis is true.
If p value <= 0.05, the null hypothesis is rejected.
If p-value >=0.05, the null hypothesis is accepted
If the null hypothesis is accepted, the independent features have no impact on the target variable’s prediction. The feature will aid in the prediction of the target variable if the null hypothesis is rejected.
Calculating p-value
The summation of the linear relationship between the target and features, or between the dependent and independent variables, is examined to get the p-value.
By using the formula y=mx + B, straight-line linear regression will aid in constructing the link between these variables.
The points closest to the regression line are the most significant and their p values are less than 0.05, so they are taken into account to forecast y, but the points farther from the line are less significant and their p values are greater than 0.05, so they are not taken into account to predict the goal y.
Data science’s fundamental concepts are probability and statistics. To address data science problems, one needs to understand the principles and concepts. It provides information on the data, its distribution, the independent and dependent variables, and other things.
