What is Data Analysis?

• A. Transformation of data to make it easier to read
• B. Task of transforming, summarizing or modeling data to support decision making
• C. How we want it to work
• D. Foundation for handling data

Answer: (B)

Data analysis is the process of transforming, summarizing or modeling data to support decision making. It goes beyond just making data readable; it turns raw data into meaningful information that helps you understand what’s happening and what could happen next.

Think of it as cleaning and shaping data so it’s usable, pulling out key statistics or patterns, and building models or forecasts that inform choices. For example, analyzing sales data to identify which products are driving revenue, how seasonality affects demand, and what would happen if you adjust prices or promotions.

The other descriptions are narrower or describe different aspects: transforming data to read more easily is mainly about readability and presentation, not the full analytical process; being the foundation for handling data describes data management infrastructure rather than the analysis itself; and saying “how we want it to work” is vague and doesn’t capture the active analysis work to extract insights.