Dummy data refers to fictitious information created for testing or demonstration purposes. It is often used in software development, data analysis, and database management to simulate real-world scenarios without compromising sensitive information. By using dummy data, developers can ensure that their applications function correctly and can handle various data inputs. This type of data can include names, addresses, numbers, and other attributes that resemble actual data but do not correspond to real individuals or entities. Tools and libraries, such as Faker or Mockaroo, are commonly used to generate dummy data, making it easier for developers to create realistic datasets for their projects.