Which statement best describes the relationship among data, information, and knowledge?

Which statement best describes the relationship among data, information, and knowledge?

• A. Data are processed data; information is raw facts; knowledge is irrelevant
• B. Data are raw facts; information is processed data that have meaning; knowledge is insights and understanding derived from information
• C. Data are facts; information is opinions; knowledge is data analysis results
• D. Data are structured data; information is unstructured; knowledge is metadata

Answer: (B)

The relationship among data, information, and knowledge follows a progression: data are raw facts, information is processed data that have meaning, and knowledge is the insights and understanding you gain from information that you can apply to decisions or actions.

Think of data as the unorganized numbers or observations you collect. When you process that data—organize it, summarize it, and give it context—you turn it into information with meaning, such as a trend, pattern, or comparison. When you take that information and interpret it, often drawing on experience and context, you develop knowledge that lets you understand what to do next and make informed decisions.

For example, a list of daily sales numbers is data. If you compute the average sales and note a rising trend over two weeks, that becomes information. If you then decide to increase inventory in anticipation of higher demand based on that trend, you are applying knowledge derived from the information.

The other statements don’t fit because they mischaracterize the relationships: information is not raw facts, opinions, or simply data analysis results in a way that ignores meaning, and knowledge isn’t just metadata or reclassified data.