Which type of reasoning involves creating a theory from generalizations?

Inductive reasoning is a logical process through which generalizations are formed based on specific observations or examples. In this method, one draws broader conclusions from particular instances. For example, if you observe that the sun rises in the east every morning, you may conclude that the sun always rises in the east. This type of reasoning moves from specific data points to broader theories or principles.

Other types of reasoning serve different purposes. Deductive reasoning starts with general premises or theories and applies them to specific cases to reach a conclusion. Abductive reasoning seeks the best explanation for a set of observations, often leading to hypotheses rather than solid generalizations. Analogical reasoning draws a comparison between two different things based on their similarities, using the known qualities of one to infer something about the other. Therefore, the nature of inductive reasoning is fundamentally about forming theories from specific cases, making it the correct choice in this context.