Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which type of data is considered more accurate and reliable than secondary data?

1. Primary data

2. Qualitative data

3. Quantitative data

4. Market research data

The correct answer is: Primary data

Primary data is considered more accurate and reliable than secondary data because it is collected firsthand by the researcher for a specific purpose. This type of data is gathered directly through methods such as surveys, interviews, experiments, and observations, allowing the researcher to gather information that is current, specific, and directly relevant to their research needs. Since primary data reflects the actual conditions, behaviors, or opinions of the subjects being studied, it often provides a more detailed and trustworthy insight compared to secondary data, which is derived from existing sources and may not suit the specific research question at hand. While qualitative and quantitative data refer to the nature and measurement of the data collected (one being descriptive and the other numerical), they can still originate from either primary or secondary sources. Market research data encompasses both primary and secondary data, making it less precise in terms of trustworthiness compared to the specificity and directness of primary data collection. Thus, primary data stands out for its reliability in contributing to informed decision-making in an entrepreneurial context.