DhanaVeda

How to prove relationship between Two or more Variables ?

You are doing research and you have gathered data in order to prove something. For example higher advertisment results into higher sales or certain type of diet helps to build weight.

But wait, how do you do that? You can’t just put down your answer based on your understanding. You have to prove it by doing statistical tests in order to validate and prove them to others.

All data can be categorised into 2 types.

Numerical Data
Categorical Data

Numerical Data :- Data which is in form of numbers are numerical data. this can be further divided into

Categorical Data:- Data which is not numeric and qualitative in nature is called as categorical data. It can be further classified into

Deciding which type of test to be done depends upon the type of variables you want to compare.

1. Numerical to Numerical

Suppose you want to find relationship between height and weight, both are numerical in nature. You can simply use a correlation matrix to find the data. Correlation values ranges from – 1 to 1. Where -1 is perfectly negatively correlated and +1 is perfectly positively correlated, a correlation of 0 would signify no correlation.

2. Categorical to Numerical

Suppose you want to prove there is difference between Male’s and Female’s height. You can use students t-test or if there are many variables to compare you can use ANOVA.

3. Categorical to Categorical

Suppose you want to compare relationship between Preference for Ice cream flavour and Gender, you can use Chi Square rest.

This are some of the test which you can do to find relationship but there are many more you can try.

What are New-Age Investments and how they differ from Traditional investments ?

“The Only Constant in Life Is Change.”
– Heraclitus

Welcome to the 21st Century, where people are addicted to Internet. And literally everything is online so why not Investments then ? In today’s post we’ll know what are New-Age Investments and how they differ from traditional investments ?

For most of the human history, We we’ve been investing in tangible things like Gold. Then came the age of paper instruments like shares and debentures they didn’t had any tangible value but they had underlying value. Now in this block chain era we are seeing rise of a new class of assets completely different from the traditional ones.

Traditional investments got their value because of rarity, take gold for example it’s just a shiny metal, it has limited usage, it’s not that strong as well but why it has value ? Because it’s rare in nature and it’s shiny. You don’t find gold easily when you dig earth as compared to other metals like Iron, Magnesium etc.

Financial instruments like shares have value because of the ownership they offer, when u buy a share, you buy a fraction of ownership of that company. when company prospers, your investments go up and vice versa. Earlier shares where in paper format causing problems like duplication, easy to lose and didn’t last long enough, but now it’s completely online.

New Age investments like Crypto Currencies, NFTs have caught the eye of investors. The underlying technology behind such investments is block chain which in itself is a wonderful technology, it overcomes the weakness of current web 2.0 which is centralisation. You know today’s internet is controlled by corporations not by individuals. Block chain changes the game, now we have decentralised networks where everyone is the owner. This opens up an entire new landscape of opportunities.

Let’s talk about NFTs, just like how share certificates were digitalized, NFTs digitalized the Artwork. You can own your own unique artwork on the internet. NFT market has crossed 40 Billion recently and it’s expected to grow even more.

We’ll, crypto currencies don’t require introduction. It has kept market at craze, everybody wants to invest them, when u can invest them for as low as 100 rs, who would not. Block chain makes it almost impossible to duplicate the currencies making it par with fiat currency. It differs with the fiat currency in the nature that it has limited supply take example of Bitcoin, only 21 million Bitcoins can be mined making it rare and valuable.

Imagine having your own world where you own a big house, yacht, plot etc. It’s longer a dream it’s reality now, Welcome to the Metaverse. Companies are investing big in it, Meta (Facebook), invested 10 Billion in it. Many individuals are also buying virtual stuffs in metaverse. Hoping later to sell them at higher price.

Traditional investments are still the most popular investment avenues, but these new age investments are growing fast and who knows if they surpass them in few decades.

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How to get more out of your data ?

“Data are just summaries of thousands of stories – tell a few of those stories to help make the data meaningful.”
~ Chip and Dan Heath

With great data, comes great analysis
~ Me

We know that data is the new oil, but as we have to refine and clean the oil which we extract and collect, same has to be done with the data. Raw data is as inefficient as raw oil.

At some point on time in our life, we must have encountered a CSV, Excel or any type of file containing data which we need to analyse to find the insights. It’s no easy task doing that if u don’t know how to start with. Every data set is different from other, it requires it’s own procedures. But there are some common procedures which u can follow everytime.

1. Ask

Before touching your data, you must ask some questions to your self and others.
Like What’s should be the outcome of my Analysis ? What do stakeholders need from me. How will my analysis help the business to make data driven decisions?

2. Exploratory data analysis

Whenever u get the data, this is the first thing you must do, it helps u to understand the nature and quality of data. Check the data types, Null values if any, relationship between the variables, Patterns in data.

3. Data Cleaning/Wrangling/ Prepossessing

When you are done with EDA, you must start cleaning your data. Make sure that you have kept the original copy safe .Remove the unwanted columns, Fill the empty values, convert the data types to the required data types, Remove Unwanted characters. Format the data etc. This part takes most of the time of data analysis.

4. Analysis

Once You have cleaned the data, it’s time to do some Analysis. Do 5 point analysis, Aggregate your data and do analysis, find outliers, find trends and patterns,

5. Visualization

At this step you are ready with your insights, you just need to share them with your stakeholders. Wait how do u do that ? all people won’t understand the steps u have taken to come to the conclusion. It’s better to visualise the answers of your analysis.
Make some beautiful Line/Bar/Pie charts and more depending upon the type of data.
Use Discrete or Continuous colors wherever needed.

6. Act

Once you have done all above things, You have your insights, identify the weakness where we need to work more, and make data driven decisions.

Following this steps would surely help you to do great analysis and find more information from your data.

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Why you should learn Python ? (Even if you are not a programmer)

Automation is driving the decline of banal and repetitive tasks.
Amber Rudd

Python is one of the most popular programming language and it’s not surprising. Its sheer popularity is due to the fact that it’s very easy to learn and it’s versatility. It can almost be used in every field.

https://stackoverflow.blog/2017/09/06/incredible-growth-python/

Here are the top 5 reasons you should learn Python (even if you are not a programmer)

Versatility

This point has to be first, python is among the most versatile language. It can be used in any field ranging from programming, data science, medical, artificial intelligence, finance, computer vision to research. you’ll find tons of companies using python for their daily activity. Learning python will give you an edge in your job.

Easy

You don’t need sit for 6 hrs lecture or a computer science degree to learn python.
You can learn it sitting at home having snacks. Python is one of the easiest language to learn. It’s syntax are made in a way that humans can understand easily.
It doesn’t require a high specification device to run (I’ve used python in a 1 GB ram potato PC ) depending upon your speed of learning you can learn python in 2 weeks to 1 month.It’s because of its simplicity it’s the most popular language to learn among beginners.

Your never alone.

Got stuck with an error while running your code ? Don’t worry there are thousands of python communities who are ready to help you. Python is a active language. It’s still developing and there are many community members who are helping other people with there doubts. You’ll find your every doubt answered.

Automate things

There are still a lot of things which you do manually which can be automated like sending personalized emails to different people, Merging big excel files. Python comes to rescue you from this time consuming things. You can even automate whatsapp to send personalized Birthday wishes to your contact numbers.

Be in demand

In this world machines are rapidly eating redundant jobs. For example in early years banking was a labour intensive sector, at every branch you would find 20-30 people doing manual jobs like printing paasbooks, verifying cheques. But today you’ll find less than 10 people working most things are done by machine now. This thing is true for every sector from Accounting, Finance, Insurance, Management to Media. Companies don’t require many no tech guys now they want tech guys who have buisness knowledge.

In India where majority of students enroll for non tech degrees are at loss for struggling to find new job in future. But by learning python you’ll have an edge over others in your interview.

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What is investing and why you should invest ?

Well, we all must have heard about investing in our life. But for most investing just means putting our money in some schemes or in gold and expecting it to grow over time. Which is completely narrow minded approach.

Investing is a very broad concept which includes allocating some part of your total income into Shares, Debentures, Bonds, Real Estate, Bullion, FD, Crypto and the list is never ending . You can Virtually invest into any thing we you which you can classify as Asset. Yep you read that right, Assets. What are assets? You may ask, Assets are those tangible or intangible things whose value may appreciate in the future or it gives you cashflows in future.

Let’s take an example to understand the difference between asset and non-asset.

You have 2 options:

Either Buy a Maruti Swift worth Rs. 6 lakhs.

Buy Shares of Maruti Suzuki India Ltd. Worth 6 lakhs

Which one would you choose ?

If you chose the car as an investment, bad luck my friend you’ve chosen a liability. The Car would eventually suck money from your account.

But if you the choose the shares you might get dividend as well as Capital Appreciation. It can rightfully called as an asset worth of investing.

So now you know what is investing. So let’s figure out why investing is important ?

To Beat the Inflation: we all know resources are scarce on our earth and our wants are Unlimited, Which causes the price of goods to go up gradually in other words value of money decreases over time.

Your hard earn money would lose its value overtime if you don’t invest it.

Wealth Creation: how many years would you like to work 15yrs, 20yrs, 40yrs, 60yrs or till you are alive ? We all want to retire as soon as possible. For that we want money, huge sum of money for retirement so that we can live our rest of our life peacefully. Investing helps us to create that wealth.

To take most of the compounding: Once Einstein said “Compounding is the 8th wonder of the world” Compounding means interest on Interest

Source: https://www.syfe.com/magazine/how-compounding-can-help-make-you-rich/

Early you invest more you get. So start investing as soon as possible.

What is the future of Cryptocurrency ?

symbols of three most popular cryptocurrencies Firo, Litecoin and Bitcoin

before we start, it’s important to understand what Cryptocurrency is. Cryptocurrency is a means of exchange just like gold, silver, or any other standard currency it’s entirely virtual which means there’s no Physical commodity or currency you hold. But then you may ask what’s the use of such currency which we can’t even see or touch?

Think cryptocurrency as a share of a company, can you see or touch the shares of any company; I bet you can’t but still they have value. One more question that might arise in your mind is that shares have value because you are buying a share in part of the profits of the company. What does Cryptocurrency have? Well, I’ve to agree with you on this question cryptocurrency honestly doesn’t have any underlying asset. But it’s backed by millions of traders who regularly buy and sell cryptocurrencies regularly and there are Major companies that accept cryptocurrencies like Microsoft, BMW, and JPMorgan, etc. So real underlying Value of cryptocurrencies is the Faith and believes that they would be accepted shortly as means of exchange by most of the companies.
So, now let’s talk about ‘will cryptocurrencies ever be accepted by the general public as means of exchanges’.

The answer is both yes and no, If you see the cryptocurrencies are backed by Block-Chain technology which makes them safe them from any counterfeits, think of it as a big register which all cryptocurrency holders hold but it’s virtual, every cryptocurrency mined or transacted is being registered in that register which is visible to everyone making them difficult to hack. Cryptocurrencies are also safe from Inflation which is a major plus since all paper currencies suffer from Inflation and Value degradation over time. The value of Rs. 100 in the 1970s is not the same as the value of hundred today. A sudden increase in cash floating in the economy can also cause the value of any currency to degrade but in Cryptocurrencies’ case, it’s different there’s already a limit set by the creators of how much cryptocurrencies can be mined. Cryptocurrencies are also decentralized which means that there is no central authority that governs the production and exchange of Cryptocurrencies; it is governed by the millions of people who trade in Cryptocurrencies.

But… Governments across the globe are not happy with Cryptocurrencies. First, Cryptocurrencies are being used as a means to evade tax, people are making their black money white with Cryptocurrencies making it difficult for the government to track. Second, Cryptocurrencies are heavily used by criminals to Extort money from the victims, because of it’s decentralization which makes the money difficult to track for the government. Third, Cryptocurrencies are still very volatile making them difficult to accept as a means of payment, for any currency to be accepted by anyone its value has to be stable but the Cryptocurrency market is still young and it makes their value highly volatile. A single tweet by Elon Musk could make Bitcoin skyrocket or down to dust. As a buyer or a seller, anyone won’t be ready to accept any money whose value changes strongly.

So will Cryptocurrencies ever be used as general means of exchange in the future? In my opinion, Cryptocurrencies have the potential to become means of exchange in the distant future when people will become more aware of Cryptocurrencies and when the Cryptocurrencies will mature. But that doesn’t seem to be in near future.