Scenario: A financial institution aims to analyze customer transactions, account balances, and demographics. Considering the complexity of their queries, which schema would be more appropriate: Star Schema or Snowflake Schema?

  • Snowflake Schema, because it provides better data integrity and scalability for financial data analysis.
  • Snowflake Schema, because it supports more intricate relationships among financial data entities and enables better data normalization.
  • Star Schema, because it reduces the need for joins and simplifies data retrieval in financial analytics.
  • Star Schema, because it simplifies query complexity and enhances performance for analytical tasks.
For a financial institution analyzing complex customer data, Snowflake Schema may be more appropriate. Snowflake Schema's normalization reduces redundancy and ensures data integrity, crucial in financial operations where accuracy is vital. It accommodates intricate relationships among entities like customers, transactions, and demographics, facilitating comprehensive analysis and reporting.
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