Data interpretation is part of daily life for most people. Interpretation is the process of making sense of numerical data that has been collected, analyzed, and presented. People interpret data when they turn on the television and hear the news anchor reporting on a poll, when they read advertisements claiming that one product is better than another, or when they choose grocery store items that claim they are more effective than other leading brands.

A common method of assessing numerical data is known as statistical analysis, and the activity of analyzing and interpreting data in order to make predictions is known as inferential statistics. Informed consumers recognize the importance of judging the reasonableness of data interpretations and predictions by considering sources of bias such as sampling procedures or misleading questions, margins of error, confidence intervals, and incomplete interpretations.

Why Is Accurate Data Collection Important?