Derived data is data that is produced by which process?

• A. Collecting raw data directly from sources.
• B. Filtering data for immediate operational use.
• C. Storing data in archival tapes.
• D. Combining existing data to create a new data set.

Answer: (D)

Derived data is data produced by combining or transforming existing data to create something new. The value comes from assembling information from multiple sources or applying calculations that generate a new dataset or metric that didn’t exist in its original form. For example, merging customer records from different systems into a single profile or computing a credit score from various indicators creates derived data. Collecting raw data yields unprocessed information, filtering for use creates a subset of the original data, and archival storage is just saving data—none of these produce the new, synthesized information that derived data represents.