IGCSE Edexcel Business Practice Test

Data quality has a direct impact on the quality of decisions. If the data is out of date or inaccurate, the conclusions drawn from it are likely to be wrong, which means the resulting decisions are often unsound. For example, using old customer demand data to plan inventory in a changing market can lead to overstock or stockouts, while incorrect cost data can distort budgeting or pricing. Because decisions rely on information, poor data undermines the whole process, making unsound outcomes likely. That’s why the statement is true. Not related wouldn’t fit because data quality clearly affects decisions; Sometimes would be too weak a claim, and False would contradict the clear link between data quality and decision quality.