CompTIA Tech+ (FC0-U71)Data and Database FundamentalsHard
A retail manager reviews a monthly sales dashboard and notices a steady three-month decline in sales for one product line. Based on this trend, the manager decides to discount that product line to boost sales. This scenario is an example of which concept?
- AData-driven decision making
- BData normalization
- CData encryption
- DData redundancy
Show answer & explanationAnswer & explanation
Correct answer: A. Data-driven decision making
Data-driven decision making means using collected and analyzed data (such as sales trends on a dashboard) to guide business decisions, rather than relying on intuition alone. The manager's decision was directly informed by the trend shown in the data.
Why the other options are wrong
- B. Normalization is a database design technique to reduce redundancy, unrelated here.
- C. Encryption protects data confidentiality and has nothing to do with this scenario.
- D. Redundancy refers to duplicate data storage, not decision-making.
Data-Driven Decision Making
Data-driven decision making is the practice of basing business or operational decisions on the analysis of collected data, such as trends, reports, and dashboards, rather than intuition alone.
- Relies on reports, dashboards, and trend analysis
- Improves accuracy of business decisions
- Common tools: dashboards, KPIs, data visualizations
Memory trick: Data-Driven = 'Drive' decisions using the Data as the steering wheel