Type 2 refers to a method of managing Slowly Changing Dimensions (SCD) in data warehousing where historical data is preserved by creating new records for each change in attribute values. This approach allows organizations to track and analyze changes over time, maintaining a complete history of an entity's attributes while keeping the current state intact. Type 2 is crucial for businesses that need to report on historical trends and analyze changes in their data, providing a comprehensive view of an entity’s evolution.
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