Microsoft Certified: Azure Data Fundamentals (DP-900) Practice Test

The purpose of data in decision making is best described by the statement that data helps to formulate, support, and justify decisions. This is because data provides the factual basis upon which decisions can be made, allowing decision-makers to analyze trends, evaluate options, and measure potential outcomes before committing to a course of action. By relying on data, organizations can enhance the accuracy of their decision-making processes, reducing reliance on intuition or assumptions.

While verifying outcomes and supporting theories are important aspects of data usage, the core function in a decision-making context is its role in formulating and justifying those decisions. Regulatory compliance is also a valid reason for data collection and use, but it doesn’t encompass the broader application of data in strategic planning and operational decisions across various organizational contexts. Therefore, this choice accurately captures the comprehensive role of data in enhancing decision-making effectiveness.