What does the term 'data lineage' refer to?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The term 'data lineage' indeed refers to the lifecycle of data, which encompasses its origins, the steps it undergoes as it moves through various processes, and any transformations it experiences over time. Understanding data lineage is crucial for organizations as it provides a clear view of where data comes from, how it has been altered, and where it proceeds to within the data ecosystem. This visibility helps in ensuring data quality, compliance with regulations, and the capability to troubleshoot data issues when they arise.

The lifecycle perspective inherent in data lineage contributes to the ability to audit data effectively, making it easier to trace back through historical data usage and transformations to validate its accuracy or to understand the implications of changes that have occurred over time.

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