Data Driven Metrics Types Explained in Data Analysis

In the last lecture, you learnt how to create business-driven metrics. Apart from type-driven and business-driven metrics, there is a third type of metrics called data-driven metrics.    

Let's see how data-driven metrics can be created from existing data.

To summarise, data-driven metrics can be created based on the variables present in the existing data set. For example, if you have two variables in your data set, such as 'weight' and 'height', which show a high correlation, then instead of analysing these variables separately, you can think of deriving a new metric "Body Mass Index (BMI)". Once you get the BMI, you can easily categorise people based on their fitness, e.g., a BMI below 18.5 should be considered an underweight category, whereas BMI above 30.0 is considered obese, by standard norms. This is how data-driven metrics can help you discover hidden patterns in the data.