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?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.
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