What does the term “data-driven decision making” refer to?

The term “data-driven decision making” refers to making decisions based on data analysis and interpretation, which is represented by the correct choice. This approach emphasizes the importance of utilizing empirical evidence and quantitative data to guide choices rather than relying solely on intuition, gut feelings, or personal opinions.

In today’s business landscape, data-driven decision making enables organizations to leverage analytics, predictive modeling, and statistical methods to derive insights that inform strategies, improve efficiency, and optimize outcomes. By using data, decision-makers can identify trends, measure performance, assess risks, and make informed predictions, which ultimately leads to more effective and justifiable decisions.

Other approaches, such as relying purely on historical precedents, employee feedback, or intuition, may lack the rigor and reliability that data analysis provides. While each of those may contribute to decision-making contexts, they do not embody the comprehensive and analytical nature of data-driven decision making.