COURSES
MBAData Science & AnalyticsDoctorate Software & Tech AI | ML MarketingManagement
Professional Certificate Programme in HR Management and AnalyticsPost Graduate Certificate in Product ManagementExecutive Post Graduate Program in Healthcare ManagementExecutive PG Programme in Human Resource ManagementMBA in International Finance (integrated with ACCA, UK)Global Master Certificate in Integrated Supply Chain ManagementAdvanced General Management ProgramManagement EssentialsLeadership and Management in New Age BusinessProduct Management Online Certificate ProgramStrategic Human Resources Leadership Cornell Certificate ProgramHuman Resources Management Certificate Program for Indian ExecutivesGlobal Professional Certificate in Effective Leadership and ManagementCSM® Certification TrainingCSPO® Certification TrainingLeading SAFe® 5.1 Training (SAFe® Agilist Certification)SAFe® 5.1 POPM CertificationSAFe® 5.1 Scrum Master Certification (SSM)Implementing SAFe® 5.1 with SPC CertificationSAFe® 5 Release Train Engineer (RTE) CertificationPMP® Certification TrainingPRINCE2® Foundation and Practitioner Certification
Law
Job Linked
Bootcamps
Study Abroad
MS in Data AnalyticsMS in Project ManagementMS in Information TechnologyMasters Degree in Data Analytics and VisualizationMasters Degree in Artificial IntelligenceMBS in Entrepreneurship and MarketingMSc in Data AnalyticsMS in Data AnalyticsMS in Computer ScienceMaster of Science in Business AnalyticsMaster of Business Administration MS in Data ScienceMS in Information TechnologyMaster of Business AdministrationMS in Applied Data ScienceMaster of Business Administration | STEMMS in Data AnalyticsM.Sc. Data Science (60 ECTS)Master of Business AdministrationMS in Information Technology and Administrative Management MS in Computer Science Master of Business Administration MBA General Management-90 ECTSMSc International Business ManagementMS Data Science Master of Business Administration MSc Business Intelligence and Data ScienceMS Data Analytics MS in Management Information SystemsMSc International Business and ManagementMS Engineering ManagementMS in Machine Learning EngineeringMS in Engineering ManagementMSc Data EngineeringMSc Artificial Intelligence EngineeringMPS in InformaticsMPS in Applied Machine IntelligenceMS in Project ManagementMPS in AnalyticsMS in Project ManagementMS in Organizational LeadershipMPS in Analytics - NEU CanadaMBA with specializationMPS in Informatics - NEU Canada Master in Business AdministrationMS in Digital Marketing and MediaMSc Sustainable Tourism and Event ManagementMSc in Circular Economy and Sustainable InnovationMSc in Impact Finance and Fintech ManagementMS Computer ScienceMS in Applied StatisticsMaster in Computer Information SystemsMBA in Technology, Innovation and EntrepreneurshipMSc Data Science with Work PlacementMSc Global Business Management with Work Placement MBA with Work PlacementMS in Robotics and Autonomous SystemsMS in Civil EngineeringMS in Internet of ThingsMSc International Logistics and Supply Chain ManagementMBA- Business InformaticsMSc International ManagementMBA in Strategic Data Driven ManagementMSc Digital MarketingMBA Business and MarketingMaster of Business AdministrationMSc in Sustainable Global Supply Chain ManagementMSc Digital Business Analytics MSc in International HospitalityMSc Luxury and Innovation ManagementMaster of Business Administration-International Business ManagementMS in Computer EngineeringMS in Industrial and Systems EngineeringMSc International Business ManagementMaster in ManagementMSc MarketingMSc Business ManagementMSc Global Supply Chain ManagementMS in Information Systems and Technology with Business Intelligence and Analytics ConcentrationMSc Corporate FinanceMSc Data Analytics for BusinessMaster of Business AdministrationMaster of Business AdministrationMaster of Business AdministrationMSc in International FinanceMSc in International Management and Global LeadershipMaster of Business AdministrationBachelor of BusinessMaster of Business Administration 60 ECTSMaster of Business Administration 90 ECTSMaster of Business Administration 90 ECTSBachelor of Business AnalyticsBachelor of Information TechnologyMaster of Business AdministrationMBA Business AnalyticsMSc in Marketing Analytics and Data IntelligenceMS Biotechnology Management and EntrepreneurshipMSc in Luxury and Fashion ManagementMaster of Business Administration (90 ECTS)Bachelor of Business Administration (180 ECTS)B.Sc. Computer Science (180 ECTS) MSc in International Corporate Finance MSc in Sustainable Luxury and Creative IndustriesMSc Digital Marketing
For College Students

Types of Derived Metrics Explained Using Data Analysis

$$/$$

In the last lecture, you saw some examples of derived metrics. Now, let’s understand the various types of derived metrics. Watch the following lecture to get an idea of the different types of derived metrics.

$$/$$

Broadly, there are three different types of derived metrics:

1.    Type-driven metrics

2.    Business-driven metrics

3.    Data-driven metrics

 

Type-Driven Metrics

 

These metrics can be derived by understanding the variable’s typology. You have already learnt one simple way of classifying variables/attributes — categorical (ordered, unordered) and quantitative or numeric. Similarly, there are various other ways of classification, one of which is Steven's typology.

 

Steven’s typology classifies variables into four types — nominal, ordinal, interval and ratio.

  • Nominal variables: Categorical variables, where the categories differ only by their names; there is no order among categories, e.g. colour (red, blue, green), gender (male, female), department (HR, analytics, sales)

    • These are the most basic form of categorical variables.

  • Ordinal variables: Categories follow a certain order, but the mathematical difference between categories is not meaningful, e.g., educational level (primary school, high school, college), height (high, medium, low), performance (bad, good, excellent), etc.

    • Ordinal variables are nominal as well.

  • Interval variables: Categories follow a certain order, and the mathematical difference between categories is meaningful but division or multiplication is not, e.g., temperature in degrees celsius (the difference between 40 and 30 degrees Celcius is meaningful, but 30 degrees x 40 degrees is not), dates (the difference between two dates is the number of days between them, but 25th May / 5th June is meaningless), etc.

    • Interval variables are both nominal and ordinal.

  • Ratio variables: Apart from the mathematical difference, the ratio (division/multiplication) is possible, e.g., sales in dollars ($100 is twice $50), marks of students (50 is half of 100), etc.

    • Ratio variables are nominal, ordinal and interval type.

$$/$$

Understanding the types of variable enables you to derive new metrics of types different from the same column.

 

For example, age in years is a ratio attribute, but you can convert it into an ordinal type by binning it into categories such as children (< 13 years), teenagers (13-19 years), young adults (20-25 years), etc. This enables you to ask questions, e.g., do teenagers do X better than children, are young adults more likely to do X than the other two types, etc. Here, X is an action you are interested in measuring. 

 

Let’s look at some more examples of type-driven derived metrics.

$$/$$

In the next lecture, you will learn the second type of derived metrics - business-driven metrics.