Final answer:
Businesses use observations to analyze data and create insights, employing methods like controlled experiments and observational studies to test hypotheses and develop predictive models or theories.
Step-by-step explanation:
Businesses use observations to create insights based on data. This involves taking data, which is the singular term for observations collected in a scientific investigation in order to test a hypothesis, and analyzing it. Observations can be qualitative or quantitative and are used by scientists and businesses alike to understand patterns, test hypotheses, and make informed decisions.
Observational methods range from controlled experiments, where variables are manipulated to observe outcomes, to observational studies, where no manipulation occurs and data is collected in a natural setting. After collecting data, a business will often formulate a hypothesis to explain patterns or behaviors observed in the data. They then test this hypothesis through further observation and experimentation, revising the hypothesis if necessary.
Ultimately, the goal is to develop models, theories, or even laws that help make sense of the collected data, allowing the business to make predictions and take actions based on the information gathered.