CFA Level II ExamQuantitative MethodsEasy
A data scientist is tasked with analyzing a massive dataset of real-time trading activity, which includes millions of transactions per second. The primary challenge is not the variety of data or its trustworthiness, but rather the sheer volume and the speed at which it is generated and processed. Which characteristic of Big Data does this scenario primarily highlight?
- AVariety
- BVolume
- CVelocity
- DVeracity
Show answer & explanationAnswer & explanation
Correct answer: C. Velocity
The scenario explicitly mentions 'millions of transactions per second' and emphasizes the 'speed at which it is generated and processed.' This directly points to the Velocity characteristic of Big Data, which refers to the speed at which data is generated, collected, and processed.
Why the other options are wrong
- A. Variety refers to the different forms of data (structured, unstructured, semi-structured), which is not the primary issue here.
- B. Volume refers to the sheer amount of data, which is present, but the primary challenge described is the speed of generation and processing, not just the static size.
- D. Veracity refers to the trustworthiness and accuracy of data, which the problem states is not the primary challenge.
Big Data Velocity
The speed at which data is generated, collected, and processed, often in real-time or near real-time.
- Refers to streaming data, rather than static datasets.
- Requires rapid processing to extract value.
- Examples include sensor data, online transactions, social media feeds.
Memory trick: Big data has a lot of V's to see!