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CHAPTER-1

Unit Objectives:

After reading this Unit, you should be able to understand:

- Why Do We Need Analytics? What is ‘R’ all about?


- Why do we need Business Analytics?
- Data visualization
- What are the specialized areas of r and its usage?

R is an open-source data analytical tool with large packages that are more flexible for
complicated datasets.

What is the Purpose of having Analytics


Before going to the straight answer for the purpose of analytics, let us see the different fields
where R can be implemented to solve complicated problems.

Banking :

Banking(fig1.1) is a real-time field which has continuous transactions of large data. It deals with
millions of users every day. So it is hard to find their mortgages.

Fig.1.1.The analytical field for Banking

The solution for the existing problem:


To find a way for such problem R develops a traditional model that maintains all the information
of loans to all the individual customers. That helps the bank to resolve the amount to be paid by
the users over time.

Insurance:

Insurance(fig1.2) broadly rely on forecasting. The challenging task for this is to check whether
the policy is accepted or rejected.

Fig.1.2. The analytical field for Insurance

The solution for the existing problem:

To solve this problem, R creates a model that will generate continuous credit report as input, it
will not just check the risk demand but also make a predictive forecasting alert as well.

Healthcare:

Nowadays Hospitals(fig.1.3) have become one of the topmost busy areas where millions of
people get admitted and have their checkup based on the admission process.
Fig.1.3 Analytical field for Healthcare

The solution for the existing problem:

Whenever the patients enter into a hospital for a checkup, they have to enroll their details. Here
comes the prediction model using R based on the previous results and reports of the patient,
identify the people who are at risk for hospitalization and to what range the medical equipment
should be measured.

Data Analytics (fig.1.4) support and provides services to the organizations to have control over
the data to generate new opportunities. The need for analytics mostly come across 4 aspects we
talk about the need for analytics in an organization, you must come across these 4 features. They
are Cost Reduction, Decision Making, Product analysis, Organization analysis
Fig.1.4. Four aspects of Data Analytics

Business Analytics for large datasets


It is a process of testing huge datasets to study and analyze the hidden patterns. Mostly it helps
us understand, predict and take better decisions for generating best products in research or
any other kind of data. Customers will be most benefitted by this kind of decisions, products and
different strategies Below diagram refers to better considerable:

Fig.1.5.Business analytics for large datasets


When we go deep into the above figure, the given data will be first scattered. Whenever the user
wants to find specific information from the database. It will be bulky to identify. In order to
simplify such data, we go for quick analysis of data. Based on the decision, we choose the path
to implement business analytics for enhancement of organizations. In this process, we can't
expect people in the chain mentioned all the time to understand the raw content that you are
determining ensuing analytics. A gap has been occurred, therefore overcome this gap, a concept
called data visualization has been developed

Data visualization

Data visualization is used to visualize data in various forms like the chart, diagrams so on.
Accessing of huge data is been developed after analytics. It helps humans to understand the
situation rather data analysis in diagrammatic approach by comparing raw data. It is the simplest
way to understand by looking at the first attempt through pie chart or a bar graph.

To achieve data visualization from already implemented or processed analyzed data. Following
are some of the tools that are usable for data visualization

Fig.1.6 Tools for Data Visualization


Sometimes we wonder how these tools really help us to see visualized data, how to carry out
analytics through R?

R is defined as a programming language as well as statistical language.

R programming mostly used for Data Analysis and Visualization.

R programming is simple to learn and easy to understand, read and write.

R programming has made open source, where we can easily modify the changes we need
accordingly. Like for example FLOSS (Free Libre and Open Source Software).

Who can use R programming?

 R can be used in the Consumer Financial Protection Bureau for data analysis
 In case of time series modeling and geospatial analysis R is used for the more reliable and
propagatable way.
 Banking sectors in America use R for reporting and describing information.
 R is used as a technological stack in Foursquare’s famed recommendation engines.
 R is used for finding and crediting risk analysis for ANZ, which is the fourth largest bank
in Australia.
 R is used as a predictor for Economic Activity by Google
 R is used for visualization web activity in Mozilla, a Firefox web browser.

Various Domains using R:

 Banking
 Pharma
 Education
 Telecom
 Retail

Fig.1.7. Different sectors where R is used