What type of diagram would best serve in representing how data is exchanged between stakeholders?

The best type of diagram for representing how data is exchanged between stakeholders is the sequence diagram. A sequence diagram provides a clear visualization of the interactions between various entities over time. It illustrates the sequence of messages or data exchanges between stakeholders and systems, emphasizing the order and timing of these exchanges. This makes it particularly useful for understanding how different components within a system or between different stakeholders communicate, which is crucial for identifying integration points and ensuring smooth data flow.

By using a sequence diagram, business analysts can depict the dynamics of data transfer and the conditions under which these exchanges occur, allowing for better comprehension of workflows and helping to identify any potential issues in the communication process. This type of diagram is especially valuable in complex scenarios where multiple parties are involved, as it provides a detailed and precise representation of interactions that other diagrams may not capture as effectively.