Exploratory Data Analysis: Discovering Insights

Learning Objectives: After this lesson, you'll master the systematic approach to understanding data—summarizing, finding patterns, detecting anomalies, and forming hypotheses through effective EDA workflows.

What is EDA?

Exploratory Data Analysis (EDA) is the process of investigating data to discover patterns, spot anomalies, test hypotheses, and check assumptions. It's detective work with data.

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The EDA Workflow

The EDA process follows a systematic approach. Explore this interactive workflow diagram:

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Step 1: Load and Inspect

Use this interactive DataFrame explorer to practice EDA techniques. Try switching between Table, Statistics, Distributions, and Correlations views:

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Step 2: Data Quality Assessment

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Step 3: Univariate Analysis

Analyze each variable individually.

Numerical Variables

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Categorical Variables

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Step 4: Bivariate Analysis

Explore relationships between pairs of variables. Here's an interactive scatter plot showing the relationship between income and monthly charges:

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Numerical vs Numerical

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Numerical vs Categorical

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Categorical vs Categorical

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Step 5: Document Insights

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EDA Checklist

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Key Takeaways

EDA is systematic — Follow a workflow: load → quality → univariate → bivariate → insights

Ask questions — Let curiosity guide exploration, not confirmation bias

Document everything — Findings, anomalies, hypotheses, and decisions

Use multiple views — Statistics AND visualizations complement each other

Iterate — EDA is not linear; discoveries lead to new questions

Quality first — Address data quality before analysis

Connections: EDA in the Data Science Pipeline

🔗 Connection to Machine Learning

EDA directly informs modeling decisions:

EDA FindingML Action
Missing valuesImputation strategy
OutliersRobust methods or removal
Skewed distributionsLog transform
High correlationFeature selection
Class imbalanceResampling strategies
Categorical cardinalityEncoding choices

🔗 Connection to Business

EDA QuestionBusiness Value
What drives churn?Retention strategies
Who are best customers?Marketing targeting
What's the typical pattern?Setting benchmarks
What's unusual?Fraud detection, QA

Practice Exercise

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Next Steps

In the next lesson, we'll build the Statistical Foundations needed for data science—distributions, hypothesis testing, and correlation analysis.


Ready to add statistical rigor to your analysis? Let's dive into statistics!