Final answer:
Data refers to raw, unprocessed facts, while information is structured or processed data that is meaningful to its receiver, assisting in decision-making. In the Information Age, we often face information overload and rely on imperfect information, yet still constantly make decisions based on the available information.
Step-by-step explanation:
When distinguishing between data and information, it is important to understand that data refers to raw, unprocessed facts that are collected through observation or measurement. Data by itself may not carry meaning until it is analyzed or processed.
In contrast, information is data that has been organized or structured in a way that is meaningful and useful to the person who receives it. Information typically informs the receiver and aids in decision-making processes.
In the Information Age, we often experience information overload due to the vast amounts of data available at our fingertips. However, not all of it is useful until it becomes information.
For example, a string of numbers and dates could be just data, but if organized on a timeline, they could provide information about historical events or trends. The transformation of data into information requires interpretation or analysis, and context is crucial for the data to become meaningful.
Economists describe the typical information we have as "imperfect" because we might not have access to all the data we need to make the perfect decision. Yet, despite this, we are still capable of making hundreds of decisions on a daily basis using the information presented to us.