What do you understand by interpretation of data? Illustrate the types of mistakes which frequently occur in interpretation.

Data interpretation refers to the process of using diverse analytical methods to review data and arrive at relevant conclusions. The interpretation of data helps researchers to categorize, manipulate, and summarize the information in order to answer critical questions.

The importance of data interpretation is evident and this is why it needs to be done properly. Data is very likely to arrive from multiple sources and has a tendency to enter the analysis process with haphazard ordering. Data analysis tends to be extremely subjective. That is to say, the nature and goal of interpretation will vary from business to business, likely correlating to the type of data being analyzed. While there are several different types of processes that are implemented based on individual data nature, the two broadest and most common categories are “quantitative analysis” and “qualitative analysis”.

Yet, before any serious data interpretation inquiry can begin, it should be understood that visual presentations of data findings are irrelevant unless a sound decision is made regarding scales of measurement. Before any serious data analysis can begin, the scale of measurement must be decided for the data as this will have a long-term impact on data interpretation ROI. The varying scales include:

Nominal Scale: non-numeric categories that cannot be ranked or compared quantitatively. Variables are exclusive and exhaustive.

Ordinal Scale: exclusive categories that ____ ________ _____ __________ _______ _________ _______ _____ ______ _____.
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