What is the importance of classification of data? What are the types of classification of data?

What is the importance of classification of data?  What are the types of classification of data?

Answer:

Raw data is not very comprehensible. Therefore, data classification is important. 

Some of the reasons why classification of data is important:

• It condenses the bulk data
• Classification condenses the bulk data
• It simplifies the data and makes the data more comprehensible
• Classification facilitates comparison of characteristics
• Classification renders the data ready for any statistical analysis

Types of classification of data:

Geographical classification

Data classified according to region is geographical classification.

Eg: Sales data of an MNC classified as per region namely – NAR, CALA, APAC, EMEA

Chronological classification

Data classified according to the time of its occurrence is called chronological classification.

Eg: Sales data of an MNC classified as per year starting from formation till date.

Conditional classification

Classification of data done according to certain conditions is called conditional classification.

Eg: Classification based on some condition. Sales data of an MNC for the last 10 years where region =APAC.

Qualitative classification

Classification of data that is immeasurable is called qualitative classification.

Eg:  sex of a person, marital status, color and others.

Quantitative classification

Classification of data that is measurable either in discrete or continuous form is called quantitative classification.

Statistical Series

Data is arranged logically according to size or time of occurrence or some other measurable or non-measurable characteristics