Data obtained that will be converted to quality information should be which of the following?

Prepare for your CPFO Risk Assessment Exam with detailed questions and explanations. Use flashcards and multiple-choice questions to enhance your understanding. Get exam-ready today!

The correct answer is the option that includes both relevance and reliability as essential criteria for transforming data into quality information.

When data is deemed relevant, it means that it directly pertains to the specific questions or issues at hand. Relevant data ensures that the information derived from it will be useful in making informed decisions or assessments. For example, in financial planning or risk assessment, data related to market trends is relevant because it helps to forecast future conditions that may affect financial strategies.

Reliability refers to the trustworthiness of the sources from which data is obtained. Data from reliable sources is critical because it ensures that the information is accurate and can be depended upon for analysis. Using unreliable data can lead to incorrect conclusions and potentially poor decision-making.

Combining both relevance and reliability enhances the credibility and applicability of the information derived from the data, making it robust for practical use. Quality information depends on having data that not only addresses the specific context but also comes from credible origins.

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