Statistical Methods

Importance of statistics in data analysis

Statistics plays a crucial role in data analysis, providing methods to summarize, organize, and make inferences from our data. The application of statistical methods enables us to draw meaningful insights from data exploration en route to making data-driven decisions. The pandas library contains a range of basic statistical methods for gaining a strong understanding of our data, which we’ll explore using the credit card dataset.

Central tendency

Central tendency is a statistical measure describing a dataset's center or typical value. There are three central tendency measures—mean, median, and mode. For example, we can find the mean of the Rating column, the median of the Income column, and the mode of the Cards column with the mean(), median(), and mode() methods, respectively.