How do annotations enhance reports and dashboards?

Annotations enhance reports and dashboards primarily by providing context and explanations that help observers interpret the data presented. When viewers encounter a report or dashboard, they may need additional information to fully understand the significance of the displayed metrics and trends. Annotations allow analysts to include notes, comments, or insights directly alongside the relevant data, clarifying the reasons behind certain trends, pointing out anomalies, or highlighting key observations.

This contextual information transforms raw data into actionable insights, allowing stakeholders to comprehend the implications of the data more effectively. It serves as a bridge between the data and decision-making, ensuring that users not only see the numbers but also understand their relevance and the story they tell.

The other choices do not capture the primary function of annotations. While decorative elements may enhance the aesthetic appeal of a report, they do not improve its informational value. Reducing the amount of data presented does not inherently relate to the purpose of annotations; rather, it could limit the insights that can be garnered. Summarizing report findings, while useful, differs from the function of annotations, which aim to provide deeper insights rather than just a summary.