What distinguishes qualitative data from quantitative data in business analysis?

The distinction between qualitative data and quantitative data is primarily rooted in the type of information they represent and the methods used to collect and analyze that information. Qualitative data is descriptive and often involves characteristics that can be observed but not measured, such as opinions, sentiments, and experiences. This type of data is subjective, as it reflects personal perspectives and interpretations. For example, feedback from customers about their experience with a product is considered qualitative data.

On the other hand, quantitative data is numerical and can be measured or counted, enabling analysis through statistical methods. This data is typically objective, meaning it is based on observable phenomena that do not change based on individual perception. An example of quantitative data could be the number of sales made in a specific period or the average customer satisfaction score.

Thus, the correct answer reflects these characteristics accurately, specifying that qualitative data is descriptive and subjective, while quantitative data is numerical and objective. This foundational understanding is essential for business analysts as they decide the appropriate methods for data collection and analysis based on their objectives.