In the context of economics, businesses use _____________ to create observations based on data.

• A. random guessing
• B. statistical analysis
• C. advertising
• D. intuition

Answer: (B)

Verified step by step guidance

1. Understand the context of the question: it asks about the method businesses use to create observations based on data in economics.
2. Recall that 'random guessing' and 'intuition' are not systematic or data-driven methods, so they are unlikely to be correct answers.
3. Recognize that 'advertising' is a business activity but not a method for analyzing data or creating observations from data.
4. Identify that 'statistical analysis' is the process of collecting, organizing, analyzing, and interpreting data to make informed observations and decisions.
5. Conclude that the correct term to fill in the blank is 'statistical analysis' because it directly relates to creating observations based on data.