Google Data Analytics Professional Certification Practice Test

What term refers to utilizing data to make informed decisions regarding future scenarios?

1. Making predictions

2. Structured thinking

3. Finding patterns

4. Data validation

The correct answer is: Making predictions

The term that refers to utilizing data to make informed decisions regarding future scenarios is making predictions. This concept involves analyzing historical data and identifying trends or patterns to forecast what may occur in the future. Making predictions is a key aspect of data analytics, as it enables businesses and organizations to anticipate potential outcomes based on previous data, allowing for proactive decision-making and strategic planning. Structured thinking, while important for organizing and analyzing data effectively, does not specifically focus on predicting future scenarios. Finding patterns relates to identifying trends or correlations in existing data but does not directly imply making forecasts about future events. Data validation is the process of ensuring that data is accurate and reliable, which is essential for the analytics process but is distinct from the act of predicting future events based on that data. Thus, making predictions captures the essence of using data for informed decision-making about future possibilities.