Making Sense of Data: The Questions You Should Always Ask

We’ve all heard the old journalism adage: who, what, where, why, and how?

But did you know that a similar framework applies when working with data?

Before using any dataset, it’s essential to ask the right questions to ensure accuracy, relevance, and proper interpretation.

Key Questions to Consider:

·      Release and Revision Schedule:
When and how often is this data set released? Are revisions made to the data after publication?

·      Geographic Coverage:
Does this data source cover national, state, county, or local levels? How does geography affect interpretation?

·      Seasonal Adjustments:
Is the data adjusted for seasonality? What are the implications of using adjusted vs. unadjusted data?

·      Monetary Adjustments:

Is the data adjusted for inflation?  What methodology is used for inflation adjustment?  If adjusted for inflation, what base year is used for constant dollars?

·      Geographic Changes Over Time:
Did definitions for regions change (e.g., new metro area boundaries)? If so, can historical comparisons still be made accurately?

·      Data Source Reliability:
Who collects the data? Is the source reputable, objective, or potentially biased?

Why It Matters:
Understanding these six key factors helps researchers, policymakers, and business leaders make better, data-driven decisions.

In this Making Sense of Data series, we’ll break down key economic and business indicators, where to find them, and how to use them effectively. Stay tuned!