Learning Objectives
By the end of this lesson, learners should be able to:
- Explain the purpose of data cleaning.
- Identify common data quality problems.
- Apply techniques for handling missing values.
- Detect duplicates and inconsistencies.
- Prepare cleaner datasets for analysis.
Why Data Cleaning Is Important
Analytical results are only as reliable as the underlying data. Dirty data can cause incorrect reports, inaccurate forecasts, failed marketing campaigns, operational inefficiencies, financial losses, and compliance issues.
Common Data Quality Problems
Missing Values
Examples:
- Missing customer email addresses,
- Missing transaction dates,
- Missing sales amounts.
Duplicate Records
The same customer appears multiple times.
Inconsistent Formats
- 2026-03-01,
- 01/03/2026,
- Mar 1, 2026.
Typographical Errors
- “Singpore” instead of “Singapore”.
Outliers
Unusually large or small values that may indicate data entry errors or exceptional business events.
Handling Missing Values
Deletion
Remove records when only a small number of observations are affected.
Imputation
Replace missing values with:
- Mean,
- Median,
- Mode,
- Predicted values.
International Example
A hotel group operating in Dubai, Singapore, and Sydney replaces missing room rates with the median rate for the same hotel category and season.
Removing Duplicates
Use unique identifiers such as customer ID, booking number, or invoice number.
Standardizing Formats
Ensure consistent formatting for dates, currencies, phone numbers, and text.
Outlier Detection
Methods include:
- Box plots,
- Z-scores,
- Interquartile range (IQR).
Outliers should be investigated before removal because they may represent important business events.
Learning Materials / Reference Materials
- Rahm & Do. Data Cleaning: Problems and Current Approaches.
- OpenRefine Documentation.
- ISO 8000 Data Quality Standards.
Lesson Summary
Data cleaning improves accuracy, consistency, completeness, and reliability, ensuring that business analytics results are trustworthy and useful for decision-making.