What is the first step in preparing a data analysis plan?

Identifying or targeting an area of the business for review is a crucial first step in preparing a data analysis plan because it lays the foundation for the entire analysis process. This initial step involves defining the specific business questions or problems that need addressing. By pinpointing a focus area, you can establish the objectives of the analysis, determine the scope, and allocate resources appropriately.

This targeted approach ensures that the subsequent steps, such as collecting data, performing analyses, and modeling, are relevant and aligned with the business's strategic goals. Moreover, having a clear understanding of what you want to investigate helps in identifying the types of data required, designing effective data collection methods, and ultimately leading to actionable insights that serve the business's needs. Without a well-defined area of focus, the data analysis may lack direction and purpose, resulting in inefficiencies and potentially irrelevant findings.