Answer:
Normally an application has to be tested with multiple sets of data. For instance, a simple login screen, depending on the user type, will give different rights. For example, if the user is an admin he will have full rights, while a user will have limited rights and support if he only has read-only support rights. In this scenario the testing steps are the same but with different user ids and passwords. In data-driven testing, inputs to the system are read from data files such as Excel, CSV (comma separated values), ODBC, etc.
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