Data & Analytics terms
51 Data & Analytics terms explained in plain English.
- Apache AirflowApache Airflow is an open-source platform for scheduling, running, and monitoring workflows, especially data pipelines.
- Apache FlinkApache Flink is an open-source engine for processing continuous streams of data as events arrive, rather than in scheduled batches.
- Apache IcebergApache Iceberg is an open table format: a specification for tracking which data files make up a table, along with its schema and history, so that files in cloud storage behave like reliable database tables.
- Apache ParquetApache Parquet is an open-source file format that stores data by column instead of by row.
- Apache SparkApache Spark is an open-source distributed data processing engine.
- BigQueryBigQuery is Google Cloud's analytics database.
- Business Intelligence (BI)Business Intelligence, or BI, is the practice of collecting, organising, and analysing business data to help people make better decisions.
- Change data capture (CDC)Change data capture (CDC) is a technique for detecting every change made to a database, such as new rows, updates, and deletions, and passing those changes to other systems almost immediately.
- Churn RateChurn rate (also called attrition rate) is the percentage of customers who stop using a product or service within a defined time period, typically monthly or annually.
- Cohort AnalysisCohort analysis groups individuals (customers, users, patients) who share a common defining characteristic (typically when they started using a product, when they were first treated, or when they made their first purchase) and tracks their behavior over time.
- Confidence IntervalA confidence interval is a range of values, constructed from sample data, that is likely to contain the true population value for a parameter (like a mean or proportion).
- Correlation vs CausationCorrelation describes a statistical relationship between two variables -- when one tends to increase or decrease as the other does.
- Customer SegmentationCustomer segmentation is the practice of dividing a company's customers into groups (segments) based on shared characteristics, behaviors, or needs -- and then developing differentiated strategies for each segment.
- DashboardA dashboard is a screen that shows the most important information you need at a glance, usually with charts, numbers, and graphs.
- Data contractA data contract is an agreement between the team that produces data and the teams that use it, defining what the data looks like, what quality to expect, who owns it, and how changes will be handled.
- Data lakeA data lake is a large, central storage system that holds raw data in its original format, structured tables, logs, documents, images, and sensor readings, until someone needs to analyze it.
- Data lakehouseA data lakehouse is a data architecture that stores data cheaply in open file formats, like a data lake, but adds the reliable tables, transactions, and fast queries of a data warehouse.
- Data Scientist vs Data AnalystData analysts and data scientists both work with data but at different levels of complexity and purpose.
- Data StorytellingData storytelling is the practice of communicating analytical insights through a combination of data, visualizations, and narrative context in a way that engages a specific audience and drives understanding or action.
- Data VisualisationData visualisation is the practice of turning numbers and data into visual formats like charts, graphs, and maps.
- Data warehouseA data warehouse is a central database designed for analysis rather than day-to-day transactions.
- Database (beginner version)A database is an organized collection of information stored on a computer.
- DatabricksDatabricks is a cloud platform for large-scale data engineering and machine learning.
- dbt (data build tool)dbt (data build tool) is a widely used tool for transforming data inside a warehouse or lakehouse.
- Descriptive AnalyticsDescriptive analytics is the most fundamental form of data analysis: summarizing and visualizing historical data to understand what has happened in the past.
- ELT vs ETLETL (extract, transform, load) and ELT (extract, load, transform) are two ways to move data into an analytics system.
- Feature EngineeringFeature engineering is the process of creating, selecting, or transforming input variables (features) for machine learning or statistical models to improve their predictive accuracy and business relevance.
- ForecastingForecasting is the process of estimating future values of a variable based on historical data, statistical models, and/or expert judgment.
- Funnel AnalysisFunnel analysis tracks how users move through a defined sequence of steps toward a goal (purchase, signup, activation) and measures the percentage who complete each step.
- HeatmapA heatmap is a data visualization that represents numerical values as colors in a two-dimensional grid.
- HistogramA histogram is a data visualization showing the distribution of a numerical variable.
- Hypothesis TestingHypothesis testing is a formal statistical procedure for evaluating whether observed data provides sufficient evidence against a baseline assumption (the null hypothesis).
- LookerLooker is a business intelligence and data analytics platform acquired by Google in 2020, now part of Google Cloud.
- Margin of ErrorMargin of error (MOE) is the maximum expected difference between a sample estimate and the true population value, at a specified confidence level (almost always 95%).
- Mean / Median / ModeMean, median, and mode are three measures of central tendency -- each describing what a 'typical' value in a dataset looks like from a different angle.
- OutlierAn outlier is a data point that falls far outside the typical range of values in a dataset -- either much higher or much lower than the rest of the data.
- Power BIPower BI is Microsoft's business intelligence (BI) and data visualization platform.
- Predictive AnalyticsPredictive analytics uses historical data, machine learning, and statistical models to make forward-looking predictions about individual-level outcomes.
- Prescriptive AnalyticsPrescriptive analytics recommends specific actions to achieve desired outcomes, going beyond descriptive analytics (what happened), diagnostic analytics (why it happened), and predictive analytics (what will happen) to answer 'what should we do?' Prescriptive methods include optimization (finding the mathematically optimal allocation of resources given constraints), simulation (modeling the consequences of different action choices), and decision trees (structuring multi-step decision problems with probabilistic outcomes).
- Probability DistributionA probability distribution is a mathematical function that describes all possible outcomes (values) of a random variable and the probability of each outcome occurring.
- Regression AnalysisRegression analysis is a collection of statistical methods for modeling the relationship between an outcome variable (dependent variable) and one or more predictor variables (independent variables).
- Report vs AnalyticsReports and analytics both deal with data, but they answer different questions.
- SamplingSampling is the process of selecting a representative subset (sample) from a larger group (population) to collect data and make inferences about the whole population.
- Scatter PlotA scatter plot (also called a scatterplot or scatter diagram) is a data visualization that places each data point at coordinates defined by two numerical variables -- one on the x-axis and one on the y-axis.
- Semantic layerA semantic layer is a shared set of business definitions, such as what counts as 'revenue,' 'active customer,' or 'churn,' that sits between raw data and the tools people use.
- SnowflakeSnowflake is a cloud-based data warehouse platform.
- Standard DeviationStandard deviation is a measure of variability (spread) in a dataset -- how far individual values typically deviate from the mean (average).
- Statistical SignificanceStatistical significance is a mathematical determination that an observed result is unlikely to have occurred by random chance.
- TableauTableau is a business intelligence and data visualization platform that enables analysts and business users to create interactive charts, dashboards, and data stories from diverse data sources without writing code.
- Time-Series AnalysisTime-series analysis is a branch of statistical analysis focused on data collected at regular time intervals (daily sales, monthly revenue, hourly website traffic).
- What is Data?Data is any piece of information that a computer can store, process, or display.