Select the correct statement regarding the stages of the data science methodology.

The first stage of the data science methodology is indeed Business Understanding. This stage is fundamental because it involves defining the problem you’re trying to solve and understanding the goals and requirements from a business perspective. By starting with business understanding, a data scientist can ensure that the entire project aligns with the objectives of the organization and that the subsequent stages are focused on delivering actionable insights that are relevant to decision-makers.

In this initial stage, it’s important to gather information about the available resources, constraints, and the specific questions that need to be answered. This groundwork sets the foundation for the later stages, such as Data Collection and Data Understanding, which depend on having a clear business objective to guide the analysis and the methods used.

Other stages, like Data Collection and Data Understanding, come after establishing what the business needs are; without first understanding these needs, the following steps may lack direction or purpose. Modeling is also a later stage that relies on having a defined problem and solid data to build effective predictive models. Thus, starting from Business Understanding ensures that the project is relevant and focused on producing meaningful results.