University of Central Florida (UCF) GEB4522 Data Driven Decision Making Practice Exam 2

Qualitative data plays a crucial role in decision making by offering insights about trends and behaviors that are often not captured through quantitative analysis. This type of data is rooted in descriptions, observations, and subjective interpretations, allowing decision-makers to understand the context and nuances behind numerical trends.

For example, qualitative data can reveal customer motivations, preferences, and experiences, providing a richer understanding of their needs. This understanding is essential for organizations when developing strategies, products, or services that align closely with customer expectations. The insights gained from qualitative data can guide adjustments and innovations that might not be evident through numbers alone, ultimately leading to more effective and targeted decision-making processes.

In contrast, other options reflect roles that qualitative data does not fulfill. Providing numerical data for analysis pertains primarily to quantitative data, predictive analytics relies more heavily on statistical models and numerical inputs, and the notion that qualitative data is of minimal importance overlooks its significance in understanding complex human behaviors and social phenomena.