What is “big data”?

Study for the Gramling Business Analytics Exam. Engage with multiple choice questions and detailed explanations. Master your business analytics skills and get ready for success!

Big data refers to large and complex data sets that traditional data processing applications cannot manage efficiently. This concept encompasses the challenges associated with handling the volume, variety, and velocity of data generated in today’s digital world. The scale of big data often exceeds the capabilities of conventional data processing software, making specialized tools and technologies necessary to store, analyze, and derive insights from such vast amounts of information.

In stark contrast, the other alternatives do not accurately define big data. The notion of small and manageable data sets does not align with the very essence of big data, which is significant in size and complexity. Similarly, while marketing could utilize big data, it is not the sole purpose of such data, making it incorrect to define big data exclusively as data collected for marketing purposes. The notion that big data is simply data stored in multiple physical locations is also misleading, as it emphasizes storage rather than the inherent challenges and characteristics of the data itself. Overall, the definition captured in the correct choice encapsulates the core attributes and complexities that define big data.

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