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The Network Measurement System (NMS) represents an implementation of a new approach to the performance measurement and evaluation of computer network systems and services. In this report, the interpretation of data within the NMS is described. These data have been acquired by the Network Measurement Machine (NMM) component of the NMS and are then interpreted by a Data Analysis Package (DAP), which produces meaningful information concerning the quality of network service delivered to interactive terminal users as well as a characterization of user demands and network communication facility utilization. This report traces the flow of data from the time of capture by the mini-computer-based NMM through the several phases of modeling and structuring in the DAP. Included in this description is the statistical treatment of the data which provides quantitative measures of various aspects of network performance.