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IAI Actuarial Core Principles · Actuarial Statistics · Purpose and function of data analysis

In the standard data analysis process described in the CS1 syllabus, which of the following is the correct order of the broad stages?

The correct order is to define the aims, collect the data, process and clean it, analyse it, and then report the conclusions. The aims come first because they decide what data are needed, and the analysis can only be done on cleaned data.

  1. ACollect data, clean data, define the aims, analyse, report
  2. BDefine the aims, collect data, process and clean the data, analyse, report the conclusionsCorrect
  3. CAnalyse, define the aims, collect data, clean data, report
  4. DClean data, define the aims, analyse, collect data, report
  5. Report, collect data, define the aims, clean data, analyse

Explanation

The process begins by stating the aims of the analysis, which determine what data are needed. Data are then collected, processed and cleaned, analysed, and finally the conclusions are communicated. The other orders put analysis or cleaning before the aims are known.

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