Google Data Analytics Professional Certification Practice Test

What refers to data that resides within a company's own systems?

1. External data

2. Structured data

3. Internal data

4. Unstructured data

The correct answer is: Internal data

The term that accurately describes data residing within a company's own systems is internal data. This type of data includes information generated from the company's operations, transactions, and activities, and it can cover various aspects such as sales figures, customer databases, and employee records. Internal data is vital for organizations as it provides critical insights into their performance, helps in decision-making, and aids in strategizing future enhancements. Utilizing internal data allows businesses to analyze their strengths and weaknesses and derive informed conclusions about their operations. The other options refer to different types of data. External data comes from sources outside the organization, such as market research reports or industry analyses. Structured data is characterized by its organization into a well-defined format, such as databases with rows and columns, whereas unstructured data lacks that specific format and can include text files, images, and videos. Understanding these categories is important for effective data management and analysis, highlighting why internal data is the correct choice in this context.