A company collects data on customer purchase habits through their online store. Which of the following BEST explains how this data can be used to create information that is valuable to the business?
Storing the data in a secure database for future use
Analyzing the data to understand buying trends and inform inventory management
Performing regular server maintenance to ensure data integrity
Encrypting the data to prevent unauthorized access
The correct answer explains that analyzing customer purchase data allows a company to identify trends and patterns. This process turns raw data into actionable information, which can then be used to make informed business decisions, such as managing inventory and planning marketing campaigns. Data encryption is a security measure to protect data, not a method for creating information from it. Storing data is a passive step in the computing cycle that preserves data for future use but does not inherently transform it into information. Server maintenance is an operational task that ensures the system's reliability but is not part of the data analysis process.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What does analyzing data mean in this context?
Open an interactive chat with Bash
Why is encryption not suitable for creating actionable information from data?