By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    data-driven image seo
    Data Analytics Helps Marketers Substantially Boost Image SEO
    8 Min Read
    construction analytics
    5 Benefits of Analytics to Manage Commercial Construction
    5 Min Read
    benefits of data analytics for financial industry
    Fascinating Changes Data Analytics Brings to Finance
    7 Min Read
    analyzing big data for its quality and value
    Use this Strategic Approach to Maximize Your Data’s Value
    6 Min Read
    data-driven seo for product pages
    6 Tips for Using Data Analytics for Product Page SEO
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Practical Data Analytics – When is “close enough” good enough?
Share
Notification Show More
Latest News
anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security
ai in software development
3 AI-Based Strategies to Develop Software in Uncertain Times
Software
ai in ppc advertising
5 Proven Tips for Utilizing AI with PPC Advertising in 2023
Artificial Intelligence
data-driven image seo
Data Analytics Helps Marketers Substantially Boost Image SEO
Analytics
ai in web design
5 Ways AI Technology Has Disrupted Website Development
Artificial Intelligence
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > Practical Data Analytics – When is “close enough” good enough?
Business Intelligence

Practical Data Analytics – When is “close enough” good enough?

Brett Stupakevich
Last updated: 2010/10/06 at 11:55 AM
Brett Stupakevich
3 Min Read
SHARE
- Advertisement -

amazing girl quits 1 300x199 photo (data analytics)

amazing girl quits 1 300x199 photo (data analytics)

Data analytics isn’t always about getting the right answer – it’s often about getting useful answers that help make the best decisions. There are many instances where the right answer doesn’t even exist. An example is if we’re using social data or a predictive model.  So how do we know when “close enough” is good enough?

More Read

data analytics is essential for website UX design

Advances in Data Analytics Key to Business Website Optimization

Top 5 Reasons You Should Become a Data Analyst
Email Marketers Use Data Analytics for Optimal Customer Segmentation
4 Data Analytics Tools for Property Market Valuations
Small Businesses Use Data Analytics Tools to Cut Costs as Inflation Rises

Let’s say you are using data analytics to help prevent undesirable turnover of high potential employees in your organization. You have a model that predicts which high potential employees will quit next. So, the idea is to alert management so they can intervene.  In this case, there is no right answer – until someone quits, and then it’s too late. The model provides an indication along some continuum of the likeliness to quit.  You will draw a line on that continuum and intervene for every employee who falls above the line.  Hopefully you have the model inputs and an understanding of how the model works.

If the answer from the model is low, medium or high, is that “close enough” to help you decide where to place the line? What if the model produces a whole number from 0 to 10? Can you make a decision about where to intervene?  What if it provides half-steps (8.5, 9.0, 9.5)? What about tenths (8.1, 8.2, 8.3)? Hundredths (8.01`, 8.02, 8.03)? Pretty soon you’ll reach a point where an increase in precision doesn’t really affect your decision, and you’ve found your definition of “good enough”.

If the model doesn’t provide acceptable precision, you can assess the cost of increasing precision against the cost and consequence of intervening unnecessarily. Once you get acceptable precision, where you place the line will be a balance between your tolerance for risk (someone quits without intervention) and the cost and consequence of intervening unnecessarily.

As with any kind of change management, your success will be heavily influenced by the way you communicate this to others. If you think some users won’t find the results “good enough”, you should manage their expectations and either discuss the process you’ll take to improve the results, or discuss the economics of why improving the results will cost more than the problem is worth. In either case, it’s more likely that a bad decision will be due to a lack of understanding than a lack of information.

Steve McDonnell
Spotfire Blogging Team

Image Credit:  thechive.com

TAGGED: data analytics
Brett Stupakevich October 6, 2010
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
- Advertisement -

Follow us on Facebook

Latest News

anti-spoofing tips
Anti-Spoofing is Crucial for Data-Driven Businesses
Security
ai in software development
3 AI-Based Strategies to Develop Software in Uncertain Times
Software
ai in ppc advertising
5 Proven Tips for Utilizing AI with PPC Advertising in 2023
Artificial Intelligence
data-driven image seo
Data Analytics Helps Marketers Substantially Boost Image SEO
Analytics

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

data analytics is essential for website UX design
Analytics

Advances in Data Analytics Key to Business Website Optimization

7 Min Read
reasons to become a data analyst
Data Science

Top 5 Reasons You Should Become a Data Analyst

6 Min Read
data analytics for better email marketing
Analytics

Email Marketers Use Data Analytics for Optimal Customer Segmentation

12 Min Read
real estate and big data
Analytics

4 Data Analytics Tools for Property Market Valuations

8 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots
ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?