What is Data Interpretation? | General Test Preparation for CUET - CUET Commerce PDF Download

What is Data Interpretation?

Data interpretation involves analyzing provided data and utilizing it to derive the necessary information. This data can be presented in diverse formats such as tables, pie charts, line graphs, bar graphs, or a combination thereof.

What is Data Interpretation Method?

Data interpretation method is a way to analyze and help people make sense of numerical data which has been collected, analyzed and presented. When data is collected, it normally stays in a raw form which may be difficult for the normal person to comprehend and that is why analysts always try to break down the information gathered so that others can make sense of it.
For instance, when Founders present their pitches to his or her potential investors, they do that by interpreting the data such as market size, growth rate and so on for better understanding. There are 2 principal methods by which data interpretation can be done:

1. Qualitative Data Interpretation Method
Qualitative data interpretation method is used to analyze qualitative data which is often termed as categorical data. This approach uses texts, rather than numbers or patterns to represent data. Qualitative data requires first to be coded into numbers before it can be analyzed. As the texts are usually cumbersome and take more time. Coding done by the analyst is also documented so that it can be reused by others and also examined further.
There are 2 main types of qualitative data, such as nominal and ordinal data. These two data types are both performed using the same method, but ordinal data interpretation is easier than that of nominal data.
In most of the cases, ordinal data is usually labeled with numbers throughout the process of data collection, and so many times coding may not be required. This is different from nominal data which still requires to be coded for proper interpretation.

2. Quantitative Data Interpretation Method
Quantitative data interpretation method is used to analyze quantitative data which is also termed as numerical data. This data type includes numbers and is therefore can be analyzed with the help of numbers and not texts. 
Quantitative data can be categorized into two main types, such as discrete and continuous data. Continuous data is further divided into interval data and ratio data, with all the data types being numeric. 
Due to its natural existence as a number, analysts do not need to use the coding method on quantitative data before analyzing it. The process of analyzing quantitative data requires statistical modeling techniques namely standard deviation, mean and median.

Visualization Techniques in Data Analysis

Data visualization is a graphical representation of information and data. By applying visual elements like charts, graphs, and maps, data visualization tools give a convenient way to see and understand trends, outliers, and patterns in data.
In the world of Big Data, data visualization tools and technologies are necessary to interpret massive amounts of data and make data-driven judgments. Our eyes are drawn to colors and patterns. We can immediately identify red from blue, and square from a circle. Our culture is visual, including everything from art and advertisements to TV and movies.
Data visualization is another form of visual art that seizes our interest and holds our eyes on the message. When we see a chart, we immediately see trends and outliers. If we can see something, we internalize it fast.

Types of Data Interpretation

The various types of Data Interpretation are given below:
1. Tabular DI: In Tabular DI, data is provided in horizontal rows and vertical columns called tabular form. A table is one of the simplest and most convenient tools used for summarizing data and presenting it in a meaningful way. In a table, data is arranged systematically in columns and rows. While reading a table, the following parts need to be given careful observation.

• Title of the Table: It gives the description of the content of the table and precisely describes the kind of data, measurements and the period for which it occurred.
• Column Heading: This defines the information contained in the various columns with specifications of the unit of measurement in some cases.
• Head Note: In general, the unit of measurement is specified in the head note.
• Footnote: These are used to point out any exceptions in arriving at the data.

2. Pie Charts: It is a circular chart divided into various sectors. The sectors of the circle are constructed in such a way that the area of each sector is proportional to the corresponding values of information provided. In pie charts, the total quantity is distributed over a total angle of 360° or 100%.
Pie graphs have the shape of a pie and each slice of the pie represents the portion of the entire pie allocated to each category. Here the data could be presented and converted into 360 degrees or in percentages or in fractions. Many times, Statisticians may use exact figures against these sectors inside or outside as the case may be. Pie charts can be classified into two main types such as Exploded Pie Chart and Doughnut Pie Charts.

• Exploded Pie Chart: A pie chart with one or more sectors separated from the rest of the disk is called an exploded pie chart. This pie chart is used to either highlight a sector or to highlight smaller segments of the chart with a small proportion.
• Doughnut Pie Chart: A doughnut pie chart (also spelt as donut) is functionally identical to a pie chart, with the exception of a blank center and the ability to support multiple statistics at once. There are two types of doughnut pie charts, doughnut and exploded doughnut pie charts.

3. Bar Graph: In Bar Graph, data is represented as horizontal or vertical bars. One of the parameters is given on the x-axis and other on y-axis. Here we need to understand the given information and thereafter answer the given questions. A bar graph or a bar chart presents the grouped data with the help of rectangular bars. These bars are either horizontal or vertical and their lengths are proportional to the value that they represent.
There are 2 axes in the graph in which one represents particular categories being compared and the other axis shows a discrete value. Those bar graphs in which clustered groups of more than one bar are presented are known as grouped bar graphs, And, bar graphs in which bars are divided into sub-parts to show cumulative effect are known as cumulative bar graphs or stacked bar graphs.

4. Line Graph: A line graph shows the quantitative information or a relationship between two changing quantities with a line or curve. We are required to understand the given information and thereafter answer the given questions. A line graph or a line chart is a geographical representation of the change in two variables over a period of time. A line graph is created by connecting various data points.
Each data point is obtained as a result of plotting a point when we are given the value of two variables such as one independent variable and one dependent variable. Line graphs are a small but important part of data interpretation. In line graph questions, candidates are provided with certain data in the form of a line graph. The data may be related to various categories such as the following, Average income and expenses, Comparing pie charts, population or demographics study, demand and supply, funds, distribution and utilization etc.

5. Caselet DI: In Caselet DI, a long paragraph is provided and with that as the basis, some set of questions are asked. We need to understand the given information and then answer the given questions.

Tips to Solve Question-based on Data Interpretation

Students can find different tips and tricks to solve questions based on Data Interpretation:

• Tip 1: Read the entire question carefully – Read the complete data given in the form of values, graph etc.
• Tip 2: Analyze the data – Take a look and analyze the data carefully. Don’t get diverted or afraid due to a lot of information and avoid skipping the information before giving a glance to it.
• Tip 3: Pay attention to the units – Many times, different units are used in one question. For example, speed is given in km/h and time is to be calculated in seconds.
• Tip 4: Use of approximation – If the options are adequately far apart then you can approximate values, fractions and percentages to nearby numbers which can ease our calculations.
• Tip 5: Use of last Digit – Check if all options have different last digits then to find the correct option we can just calculate the last digit of our answer (but then approximation is not at all allowed).
• Tip 6: Mental calculations – Try to do mental calculations as frequently as possible while practicing. It will help in minimizing the time to solve the question.
• Tip 7: Remember the following relations – Value of sector = (Angle of sector/360°) × Total Value & Value of sector = (Percentage of sector/100) × Total value

Solved Examples of Data Interpretation

Example 1: How many percent more teak trees planted by the government in the year 2017 as compared to 2016?
Sol: Total teak trees planted in year 2017 = 35000
Total teak tree planted in year 2016 = 25000
Percentage increase = (35000 – 25000)/25000 × 100 = 40%

Example 2: Find the difference between a total number of red color candies and a total number of blue color candies produced throughout the 6 years.
Sol: Total number of red color candies = 20 + 25 + 35 + 20 + 50 + 40 = 190 lakhs Total number of blue color candies = 30 + 40 + 25 + 30 + 35 + 20 = 180 lakhs
Required difference = 190 – 180 = 10 lakhs.