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Business Research Methods

(12th Edition)
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What are the essential differences among nominal, ordinal, interval, and ratio scales?

How do these differences affect the statistical analysis techniques we use?

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Measurement is process of assigning numbers to the empirical objects or events based on the the app. Standard messaging rates may apply.
set of rules. These objects or events are measured using variables. The characteristics of the
data or variables are classified as order, distance and origin, which combination provides the
measurement scale.
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Business Precalculus Loose Leaf
Research... 13th Edition for...
Measurement scale is used to categorize the values assigned to the variables. The four scales of 12th Edition 16th Edition

measurements are as follows: View all solutions

• The nominal scale information can be grouped into two or more categories, which is mutually
exclusive and collectively exhaustive.

• The ordinal scale includes the characteristics of nominal scale along with indication of the order.
It provides the ranking of the data.

• The interval scale includes the characteristics of nominal and ordinal along with concept of
equality of interval (i.e. distance).

• The ratio scale includes the characteristics of all nominal, ordinal and interval scale along with
absolute zero or origin. This scale represents the actual amounts of variable.

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The differences in these scales are that all scales do not combination of all three characteristics
such as order, distance and origin, except ratio scale. The impact of these differences of the
scales in the statistical analysis techniques is as follows:

• As nominal scale doesn’t have all the three characteristics, it provides only frequency or count
of the data, which is mode of the central tendency.

• As ordinal scale has the characteristics of “order”, it provides the mean of the central tendency
and percentile, quartile as measure of dispersion.

• Interval scale has both order and distance characteristics, which can able to provide mean of
the central tendency, standard deviation as a measure of dispersion. Also, this scale is usable to
perform statistical procedures such as co-relation analysis, t –test, f-test and other parametric
tests.

• The ratio scale includes all the characteristics such as order, distance and origin, which is
usable to perform all statistical techniques.

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Chapter 11, Problem 2DQ 3 Bookmarks Show all steps: ON

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