Which description best characterizes the data used in Step 2?

• A. It is solely numerical data
• B. It comprises both quantitative and qualitative information
• C. It is largely speculative projections
• D. It is limited to financial assets only

Answer: (B)

Data used in Step 2 should combine quantitative measurements with qualitative information to give a complete view of the situation. Quantitative data provides objective numbers, trends, and comparisons that let you measure performance and quantify outcomes. Qualitative information adds context, explains why trends occur, and captures factors that numbers alone can miss, such as stakeholder opinions, processes, and qualitative risk indicators. Using both types enables more accurate interpretation, better identification of drivers, and more robust decision-making in Step 2. Relying only on numerical data misses context; describing the data as largely speculative projections would be forecasting rather than describing actual data used; limiting data to financial assets would ignore non-financial factors that can influence results.