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It means to make some hypotheses about an event or events. These should be based on some evidence but all to often people draw conclusions based on prejudices.
To make it easier to look at, interoperate and draw conclusions from the data
"Misleading" means that it can easily make you draw wrong conclusions.
Observation data collection is a research method where data is gathered by directly observing subjects in their natural environment without interfering. Researchers carefully watch and record behaviors, interactions, or events to draw conclusions and identify patterns. This method is often used in fields such as psychology, anthropology, and education to provide rich, detailed insights into human behavior and phenomena.
List all the supporting details from a story.