DIKW Flashcards
What is Nominal Data?
Data that categorizes things but has no ranking or numerical meaning.
Examples include types of coffee, car brands, and eye colors.
Give an example of Nominal Data.
Types of Coffee: Espresso, Latte, Cappuccino
Nominal data does not imply any order or ranking.
What is Ordinal Data?
Data that can be ranked, but the differences between values aren’t equal.
Examples include customer satisfaction surveys and race results.
In which type of data can you perform mathematical operations?
Ratio Data
Ratio data allows for addition, subtraction, multiplication, and division.
What is the difference between Interval Data and Ratio Data?
Interval Data has equal intervals but no true zero, while Ratio Data has a true zero.
Examples: Temperature (Interval) vs. Weight (Ratio).
What is Descriptive Analysis?
Summarizing and interpreting raw data in a meaningful way without making predictions.
Key metrics include mean, median, mode, percentages, and standard deviation.
What is Inferential Analysis?
Making predictions and drawing conclusions about a larger group based on a smaller sample.
Examples include market research and election polling.
Fill in the blank: The DIKW Pyramid explains how raw data is transformed into meaningful _______.
wisdom
What are the four levels of the DIKW Pyramid?
- Data (Raw Facts)
- Information (Structured Data)
- Knowledge (Analysis & Insights)
- Wisdom (Actionable Strategy)
Each level builds on the previous one to support decision-making.
What is the Dunning-Kruger Effect?
A phenomenon where people with low knowledge overestimate their abilities, while experts underestimate themselves.
This effect has phases including overconfidence and reality check.
What is the ‘Peak of Mount Stupid’ in the Dunning-Kruger Effect?
The phase where beginners are overly confident due to a lack of awareness of their limitations.
Example: A new investor thinks they can predict the stock market after one successful trade.
True or False: Descriptive analysis is used to predict future trends.
False
Descriptive analysis summarizes past data rather than making predictions.
How does understanding the Dunning-Kruger Effect benefit businesses?
Helps avoid overconfidence in decision-making and encourages continuous learning.
Awareness of this effect promotes growth in personal and professional contexts.
