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Essential Statistics for Non-STEM Data Analysts

Essential Statistics for Non-STEM Data Analysts

By : Li
4.6 (10)
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Essential Statistics for Non-STEM Data Analysts

Essential Statistics for Non-STEM Data Analysts

4.6 (10)
By: Li

Overview of this book

Statistics remain the backbone of modern analysis tasks, helping you to interpret the results produced by data science pipelines. This book is a detailed guide covering the math and various statistical methods required for undertaking data science tasks. The book starts by showing you how to preprocess data and inspect distributions and correlations from a statistical perspective. You’ll then get to grips with the fundamentals of statistical analysis and apply its concepts to real-world datasets. As you advance, you’ll find out how statistical concepts emerge from different stages of data science pipelines, understand the summary of datasets in the language of statistics, and use it to build a solid foundation for robust data products such as explanatory models and predictive models. Once you’ve uncovered the working mechanism of data science algorithms, you’ll cover essential concepts for efficient data collection, cleaning, mining, visualization, and analysis. Finally, you’ll implement statistical methods in key machine learning tasks such as classification, regression, tree-based methods, and ensemble learning. By the end of this Essential Statistics for Non-STEM Data Analysts book, you’ll have learned how to build and present a self-contained, statistics-backed data product to meet your business goals.
Table of Contents (19 chapters)
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1
Section 1: Getting Started with Statistics for Data Science
5
Section 2: Essentials of Statistical Analysis
10
Section 3: Statistics for Machine Learning
15
Section 4: Appendix

Understanding the power law and black swan

In this last section, I want to give you a brief overview of the so-called power law and black swan events.

The ubiquitous power law

What is the power law? If you have two quantities such that one varies according to a power relationship of another, and independent of the initial sizes, then you have a power law relationship. Many distributions have a power law shape, rather than normal distributions: . The exponential distribution we saw previously is one such example.

For a real-word example, the frequency of words in most languages follows a power law. The English letter frequencies also roughly follow a power law. e appears the most often, with a frequency of 11%. The following graph taken from Wikipedia (https://en.wikipedia.org/wiki/Letter_frequency) shows a typical example of such a power law:

Figure 5.11 – Frequency of English letters

What's amazing about a power law is not only its universality...

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