ACCA Strategic Business Leader (SBL) Practice Exam

What does 'velocity' refer to in the context of big data?

1. The diversity of data sources

2. The speed at which data is generated and processed

3. The overall size of datasets

4. The accuracy of collected data

The correct answer is: The speed at which data is generated and processed

In the context of big data, 'velocity' specifically refers to the speed at which data is generated and processed. This characteristic is crucial because it highlights the need for systems and tools that can handle real-time data influx and rapid processing. In today's digital landscape, data is produced at an unprecedented rate from various sources such as social media, IoT devices, and online transactions. This instantaneous flow of data requires organizations to not only collect this information quickly but also analyze and respond to it almost in real-time to make timely and informed decisions. The ability to manage this velocity is essential for gaining a competitive edge and for effective data-driven strategies. The other options, while related to aspects of data management, do not encapsulate the concept of 'velocity' as accurately. The diversity of data sources refers more to 'variety,' the overall size of datasets is associated with 'volume,' and the accuracy of collected data pertains to 'veracity.' Therefore, the focus on speed in relation to data highlights why this definition of 'velocity' is at the heart of big data discussions.