New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    A company collects sales data from different regions,

    but the "Revenue" column uses inconsistent currency formats (USD, EUR, INR). What is the best approach to resolve this inconsistency?
    A Remove the inconsistent rows to maintain uniformity. Correct Answer Incorrect Answer
    B Convert all values to a common currency using current exchange rates. Correct Answer Incorrect Answer
    C Ignore the inconsistency and analyze the data as is. Correct Answer Incorrect Answer
    D Replace currency formats with a generic placeholder value. Correct Answer Incorrect Answer
    E Treat inconsistent rows as outliers and exclude them from analysis. Correct Answer Incorrect Answer

    Solution

    Explanation: Converting all revenue values to a common currency ensures uniformity, enabling accurate comparison and aggregation. This approach requires using reliable and updated exchange rates to maintain data integrity. It is especially critical in financial analysis, where inconsistencies in currency formats can lead to significant inaccuracies in insights and decisions. Automating this process through scripts or tools ensures scalability and consistency when dealing with large datasets. Option A: Removing inconsistent rows leads to data loss and affects the completeness of analysis. Option C: Ignoring inconsistencies results in flawed comparisons and unreliable outcomes. Option D: Replacing currency formats with generic placeholders eliminates crucial contextual information. Option E: Treating inconsistent rows as outliers disregards their relevance and importance in the dataset.

    Practice Next