Google Data Analytics Professional Certification Practice Test

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Prepare for your Google Data Analytics exam. Practice with comprehensive questions and descriptive explanations. Be exam-ready!

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What does Return on Investment (ROI) evaluate?

Data complexity
Success of a business
Daily decision-making
Problem domains

The correct answer is: Success of a business

Return on Investment (ROI) evaluates the success of a business by measuring the profitability of an investment relative to its cost. It is a key performance indicator that helps businesses understand how effectively they are using their resources to generate profit or achieve financial goals. By calculating ROI, businesses can assess whether their investments are yielding positive returns and make informed decisions about future investments. This ensures that the resources are allocated to the most effective initiatives that contribute to overall growth and sustainability. The other options do not align with the definition of ROI. Data complexity generally refers to the intricacies involved in managing and analyzing data, which is unrelated to measuring business profitability. Daily decision-making encompasses a range of factors beyond just financial returns, focusing more on operational choices rather than investment evaluation. Problem domains pertain to specific areas of issues or challenges within an organization, not specifically tied to the evaluation of investment success.