Derived data is data that is produced by which process?

Derived data is data that is produced by which process?

• A. Collecting raw data directly from sources.
• B. Filtering data for immediate operational use.
• C. Storing data in archival tapes.
• D. Combining existing data to create a new data set.

Answer: (D)

Derived data is data produced by combining or transforming existing data to create something new. The value comes from assembling information from multiple sources or applying calculations that generate a new dataset or metric that didn’t exist in its original form. For example, merging customer records from different systems into a single profile or computing a credit score from various indicators creates derived data. Collecting raw data yields unprocessed information, filtering for use creates a subset of the original data, and archival storage is just saving data—none of these produce the new, synthesized information that derived data represents.

Derived data is data produced by combining or transforming existing data to create something new. The value comes from assembling information from multiple sources or applying calculations that generate a new dataset or metric that didn’t exist in its original form. For example, merging customer records from different systems into a single profile or computing a credit score from various indicators creates derived data. Collecting raw data yields unprocessed information, filtering for use creates a subset of the original data, and archival storage is just saving data—none of these produce the new, synthesized information that derived data represents.