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What is a data warehouse primarily used for?a. Storing transactional datab. Storing processed data for analysisc. Storing real-time datad. Storing metadata

Question

What is a data warehouse primarily used for?

a. Storing transactional data
b. Storing processed data for analysis
c. Storing real-time data
d. Storing metadata

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Solution

Analyzing the Options

  1. Storing Transactional Data: This option refers to storing data that is generated from daily operations or transactions. While data warehouses can handle this type of data, they are not primarily designed for the purpose of storing transactional data.

  2. Storing Processed Data for Analysis: Data warehouses are specifically designed to store large volumes of processed data that can be analyzed. This is the primary function of a data warehouse, as it aids in decision-making processes by providing a centralized repository of historical data.

  3. Storing Real-Time Data: Data warehouses typically do not store real-time data. They are more suited to batch processing of historical data for analysis rather than immediate operational decision-making.

  4. Storing Metadata: While data warehouses contain metadata that describes the data stored within, this is not their primary purpose. Metadata enhances the usability of the data warehouse but does not define its main function.

Conclusion

Given the analysis, the correct answer is:

b. Storing processed data for analysis.

Data warehouses are utilized predominantly to support business intelligence activities by storing historical data that has been processed and is ready for analysis.

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