Measurement Scale

Dr. Myint Moe Moe Khin

Professor / Head
Department of Statistics
Monywa University of Economics
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 Data Vocabulary
• Data is the plural form of the Latin datum (a
“given” fact).
• In scientific research, data arise
from experiments whose results
are recorded systematically.
• In business, data usually arise from
accounting transactions or
management processes.
• Important decisions may depend on data.
 Data Vocabulary
• Subjects, Variables, Data Sets
• We will refer to Data as plural and data set as a
particular collection of data as a whole.
• Observation – each data value.
• Subject (or individual) – an item for study (e.g., an
employee in your company).
• Variable – a characteristic about the subject or
individual (e.g., employee’s income).

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 Data Vocabulary
• Subjects, Variables, Data Sets
• Three types of data sets:
Data Set Variables Typical Tasks
Univariate One Histograms, descriptive
statistics, frequency tallies

Bivariate Two Scatter plots, correlations,

simple regression

Multivariate More than Multiple regression, data

two mining, econometric modeling
 Data Vocabulary
• Subjects, Variables, Data Sets
Consider the multivariate data set with
5 variables 8 subjects
5 x 8 = 40 observations
 Data Vocabulary
• Data Types
• A data set may have a mixture of data types.

Types of Data

Attribute Numerical
(qualitative) (quantitative)

Verbal Label Coded Discrete Continuous

X = economics X=3 X=2 X = 3.15
(your major) (i.e., economics) (your siblings) (your GPA)
 Data Vocabulary
• Attribute Data
• Also called categorical, nominal or qualitative data.
• Values are described by words rather than
numbers.
• For example,
- Automobile style (e.g., X = full, midsize,
compact, subcompact).
- Mutual fund (e.g., X = load, no-load).
 Data Vocabulary
• Data Coding
• Coding refers to using numbers to represent
categories to facilitate statistical analysis.
• Coding an attribute as a number does not make
the data numerical.
• For example,
1 = Bachelor’s, 2 = Master’s, 3 = Doctorate
• Rankings may exist, for example,
1 = Liberal, 2 = Moderate, 3 = Conservative
 Data Vocabulary
• Binary Data
• A binary variable has only two values,
1 = presence, 0 = absence of a characteristic of
interest (codes themselves are arbitrary).
• For example,
1 = employed, 0 = not employed
1 = married, 0 = not married
1 = male, 0 = female
1 = female, 0 = male
• The coding itself has no numerical value so binary
variables are attribute data.
 Data Vocabulary
• Numerical Data
• Numerical or quantitative data arise from counting
or some kind of mathematical operation.
• For example,
- Number of auto insurance claims filed in
March (e.g., X = 114 claims).
- Ratio of profit to sales for last quarter
(e.g., X = 0.0447).
• Can be broken down into two types – discrete or
continuous data.
 Data Vocabulary
• Discrete Data
• A numerical variable with a countable number of
values that can be represented by an integer (no
fractional values).
• For example,
- Number of Medicaid patients (e.g., X = 2).
- Number of takeoffs at O’Hare (e.g., X = 37).
 Data Vocabulary
• Continuous Data
• A numerical variable that can have any value
within an interval (e.g., length, weight, time, sales,
price/earnings ratios).
• Any continuous interval contains infinitely many
possible values (e.g., 426 < X < 428).
 Data Vocabulary
• Rounding
• Ambiguity is introduced when continuous data are
rounded to whole numbers.
• Underlying measurement scale is continuous.
• Precision of measurement depends on instrument.
 Level of Measurement
• Four levels of measurement for data:
Level of
Measurement Characteristics Example
Nominal Categories only Eye color (blue, brown,
green, hazel)
Ordinal Rank has meaning Bond ratings (Aaa, Aab,
C, D, F, etc.)
Interval Distance has Temperature (57o
meaning Celsius)
Ratio Meaningful zero Accounts payable ($21.7
exists million)
 Level of Measurement
• Nominal Measurement
• Nominal data merely identify a category.
• Nominal data are qualitative, attribute, categorical or classification data (e.g., Apple, Compaq, Dell, HP).

• Nominal data are usually coded numerically, codes are arbitrary (e.g., 1 = Apple, 2 = Compaq, 3 = Dell, 4 =
HP).

• Only mathematical operations are counting (e.g., frequencies) and simple statistics.
 Level of Measurement
• Ordinal Measurement
• Ordinal data codes can be ranked
(e.g., 1 = Frequently, 2 = Sometimes, 3 = Rarely,
4 = Never).
• Distance between codes is not meaningful
(e.g., distance between 1 and 2, or between 2 and
3, or between 3 and 4 lacks meaning).
• Many useful statistical tests exist for ordinal data.
Especially useful in social science, marketing and
human resource research.
 Level of Measurement
• Interval Measurement
• Data can not only be ranked, but also have
meaningful intervals between scale points
(e.g., difference between 60F and 70F is same
as difference between 20F and 30F).
• Since intervals between numbers represent
distances, mathematical operations can be
performed (e.g., average).
• Zero point of interval scales is arbitrary, so ratios
are not meaningful (e.g., 60F is not twice as
warm as 30F).
 Level of Measurement
• Likert Scales
• A special case of interval data frequently used in
survey research.
• The coarseness of a Likert scale refers to the
number of scale points (typically 5 or 7).
“College-bound high school students should be required to study a
foreign language.” (check one)
    
Strongly Somewhat Neither Somewhat Strongly
Agree Agree Agree Disagree Disagree
Nor
Disagree
 Level of Measurement
• Likert Scales
• A neutral midpoint (“Neither Agree Nor Disagree”)
is allowed if an odd number of scale points is used
or omitted to force the respondent to “lean” one
way or the other.
Likert coding: Likert coding:
• Likert data are 1 to 5 scale -2 to +2 scale
coded numerically 5 = Help a lot +2 = Help a lot
(e.g., 1 to 5) but any 4 = Help a little +1 = Help a little
3 = No effect 0 = No effect
equally spaced 2 = Hurt a little 1 = Hurt a little
values will work. 1 = Hurt a lot 2 = Hurt a lot
 Level of Measurement
• Likert Scales
• Careful choice of verbal anchors results in
measurable intervals (e.g., the distance from 1 to
2 is “the same” as the interval, say, from 3 to 4).

• Ratios are not meaningful (e.g., here 4 is not

twice 2).
• Many statistical calculations can be performed
(e.g., averages, correlations, etc.).
 Level of Measurement
• Likert Scales
• More variants of Likert scales:
How would you rate your marketing instructor? (check one)

    
Terrible Poor Adequate Good Excellent

How would you rate your marketing instructor? (check one)

Very Bad       Very Good

 Level of Measurement
• Ratio Measurement
• Ratio data have all properties of nominal, ordinal
and interval data types and also possess a
meaningful zero (absence of quantity being
measured).
• Because of this zero point, ratios of data values
are meaningful (e.g., $20 million profit is twice as
much as $10 million).
• Zero does not have to be observable in the data,
it is an absolute reference point.
 Level of Measurement
• Use the following procedure to
recognize data types:
Question If “Yes”

Q1. Is there a Ratio data (all statistical operations are

meaningful zero point? allowed)
Q2. Are intervals Interval data (common statistics allowed,
between scale points e.g., means and standard deviations)
meaningful?
Q3. Do scale points Ordinal data (restricted to certain types
represent rankings? of nonparametric statistical tests)
Q4. Are there discrete Nominal data (only counting allowed,
categories? e.g. finding the mode)
 Level of Measurement
• Changing Data by Recoding
• In order to simplify data or when exact data
magnitude is of little interest, ratio data can be
recoded downward into ordinal or nominal
measurements (but not conversely).
• For example, recode systolic blood pressure as
“normal” (under 130), “elevated” (130 to 140), or
“high” (over 140).
• The above recoded data are ordinal (ranking is
preserved) but intervals are unequal and some
information is lost.
 Rank Order Scaling
• To assign a rank of 1 to the most preferred
brand
• No two brands should receive the same
rank number
Brand Rank order
1. Colgate -----------
2. Close Up -----------
3. Pepsodent -----------
--------------- -----------
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 Continuous Rating Scale
• Referred to as a graphic rating scale
• Typically treated as interval data
• Easy to construct (adve)
• Scoring can be cumbersome unless
computerized
How would you rate ABC as a department store?
Neither good Very good
Very bad Nor bad
Probably Probably
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the worst 0 10 20 30 40 50 60 70 80 90 100 the best
Thanks

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