Explain the concept of "Normalization" in the context of the Caboodle Data Model.

Normalization is a crucial concept in the Caboodle Data Model that focuses on organizing data in a way that reduces redundancy and dependency. This process involves structuring the data into tables and defining relationships between them to ensure that each piece of data is stored in one place only. By doing so, normalization helps maintain data integrity and makes it easier to update records without the risk of introducing inconsistencies.

For instance, if a database contains redundant copies of customer information across multiple tables, it can lead to discrepancies when updating customer details. Normalization addresses this issue by breaking down the information into smaller, related tables that reference each other through relationships, thereby streamlining data management and enhancing efficiency.

In this context, other options present concepts that are unrelated to the primary goal of normalization. For example, combining data from various sources into one table generally refers to data integration rather than normalization. Establishing a hierarchy among data elements pertains more to data categorization or classification, while creating data backups is focused on data security and recovery, rather than organization and structure. Thus, the essence of normalization as a means to optimize relational database design is best captured by the correct answer.