Data Interpretation can be defined as "the application of statistical procedures to analyze specific observed or assumed facts from a particular study". Data interpretation is something that is pretty common in education circles. They come as questions in tests to understand how much a student has understood the subject at hand. In school, college, university and higher educational levels, data interpretation is common. In various entrance exams for colleges too, data interpretation is used as a means to understand a student's grasp of the subject.
It is very important to understand how to interpret data in order to do well in these tests. It is especially important in case of students planning to study finance and mathematics. An interpretation question will usually contain a chart or a graph. It will also contain some data or even sets of data which the student has to analyze and come to a conclusion. When you are solving an interpretation question you will have to understand what the graph or chart means. If there are numbers involved (most probably they will be) you will have to find out what they stand for. Next, you need to draw a data set that represents the graph or chart in question. Now you have to look at the data set and come to a conclusion about what it means.
