Problem:
In any business, the quality of decisions is often related to the quality of information. For instance, effective product marketing entails combining the right offering (keeping in mind that products are bundles of attributes and different bundles, or combinations of attributes, will appeal to different prospective buyers) with the right target buyer group. Knowing what constitutes the right offering and the right prospective buyer group usually involves data analysis. In general, using data to shape or guide business decisions entails a progression along the continuum of data → information → knowledge.
What is the difference between data, information, and knowledge? In your opinion, when does data become information and information become knowledge? Support your answer with relevant examples. Why is meaningful and correct data analysis—statistics—important in using the volumes of available business data?