What type of data transformation can the Formula Tool perform?

The Formula Tool in Alteryx is primarily used for performing conditional calculations and data conversions on datasets. It allows users to create new columns or modify existing ones by applying mathematical operations, logical expressions, or string manipulations. This transforms the data into a desired format or computes specific values based on the underlying data conditions.

For example, with the Formula Tool, you can create a new field that categorizes data based on certain conditions (like creating a binary field based on thresholds) or convert data types (such as changing a string to a number). This capability makes it an essential tool for data preparation, ensuring data is in the correct format for analysis or visualization.

The other options involve actions that are not the primary functions of the Formula Tool. Sorting and filtering are handled by different tools specifically designed for those purposes. Merging datasets is typically done with the Join Tool. Creating new workflows relates more to the overall structure of the project and is not within the scope of the Formula Tool's capabilities. Thus, the identification of conditional calculations and data conversions as the primary purpose of the Formula Tool is accurate and highlights its critical role in data manipulation within Alteryx.