Databases that are designed and managed specifically to meet information needs are calleda)production databasesb)transaction databasesc)data warehousesd)database management systemsCorrect answer is option 'C'. Can you explain this answer?

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Answer

Data Warehouses

Data warehouses are databases that are designed and managed specifically to meet information needs. They are a type of specialized database that is optimized for querying and analyzing large volumes of data. Unlike transactional databases, which are designed for day-to-day operations and transaction processing, data warehouses are built to support decision-making processes.

Key Features of Data Warehouses

Data warehouses have several key features that distinguish them from other types of databases:

Subject-Oriented: Data warehouses are organized around specific subjects or areas of interest, such as sales, customer data, or inventory. They are designed to provide a comprehensive view of the data related to a particular subject.

Integrated: Data warehouses integrate data from multiple sources, such as operational databases, external systems, and other data feeds. The data is transformed and standardized to ensure consistency and accuracy.

Time-Variant: Data warehouses store historical data and enable analysis of data changes over time. This allows for trend analysis, forecasting, and comparison of performance metrics across different time periods.

Non-Volatile: Once data is loaded into a data warehouse, it is typically not updated or deleted. Instead, new data is added to the warehouse, maintaining a complete history of all the data that has been collected.

Benefits of Data Warehouses

Data warehouses offer several benefits for organizations:

Improved Decision-Making: By providing a centralized and comprehensive view of data, data warehouses enable better decision-making processes. Decision-makers can access relevant and reliable information quickly, leading to more informed and effective decisions.

Enhanced Data Analysis: Data warehouses provide powerful analytical capabilities, allowing users to perform complex queries, generate reports, and conduct advanced data analysis. This helps uncover patterns, trends, and insights that can drive business strategies and initiatives.

Data Consistency and Quality: Data warehouses ensure data consistency and quality by integrating and standardizing data from various sources. This reduces data duplication, inconsistencies, and errors, leading to more reliable and accurate information.

Scalability and Performance: Data warehouses are designed to handle large volumes of data and support complex queries efficiently. They are optimized for performance, enabling fast data retrieval and analysis even with vast amounts of data.

Overall, data warehouses play a crucial role in meeting information needs by providing a centralized, integrated, and historical view of data. They enable organizations to make data-driven decisions, uncover insights, and improve overall business performance.

Answer

Production databases are also known as transaction databases. Although such databases yield streams of useful information, there are specialised databases, known as data warehouses that are designed and managed specifically to meet information needs. The data warehouses derive their data from production databases.

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