Data Interpretation Tips

 Data Interpretation can be defined as "the application of statistical procedures to analyze specific observed or assumed facts from a particular study". They come as questions in tests to understand how much a student has understood the subject at hand. In bank entrance exams for data interpretation is used as a means to understand a student's grasp of the subject. It is very important to understand how to interpret data in order to do well in these tests. It is especially important in case of students planning to study finance and mathematics. An interpretation question will usually contain a chart or a graph. It will also contain some data or even sets of data which the student has to analyze and come to a conclusion. When you are solving an interpretation question you will have to understand what the graph or chart means. If there are numbers involved (most probably they will be) you will have to find out what they stand for. Next, you need to draw a data set that represents the graph or chart in question. Now you have to look at the data set and come to a conclusion about what it means. To do well in interpretation questions, practicing them regularly is extremely important.

     Data may be represented in a number of complex forms, and hence solving Data Interpretation problems becomes far more difficult. There is no fixed format for solving such problems, and each has to be tackled in its own distinct way. Thus, to answer such questions correctly, it is essential to practice all types of Data Interpretation exercises a number of times, so as to be familiar with all the data presentation types.

Read the data very carefully, as the smallest detail may change the meaning of the question completely. Similarly, the instructions have to be understood carefully to prevent wasting time. Try to understand the data provided carefully, before jumping to answer the questions. The questions are designed to be deceptive, and proper understanding of the requirements is a must. If the Data Interpretation is of the combined variety or if there are more than one data table/charts/graphs, try to understand the relation between the given tables. Be careful of the units used in the tables, and the units in which the answers are provided. A mistake in the units may yield an entirely different answer. Also be careful of whether the answer is required in decimal or percentage. Such errors are very common and easily avoidable.