Categorize these measurements associated with a robotics company according to level: nominal, ordinal, interval, or ratio.(a)Salesperson's performance: below average, average, above average.nominalordinal intervalratio(b)Price of company's stocknominalordinal intervalratio(c)Names of new productsnominalordinal intervalratio(d)Temperature (°F) in CEO's private officenominalordinal intervalratio(e)Gross income for each of the past 5 yearsnominalordinal intervalratio(f)Color of product packagingnominalordinal intervalratio
Question
Categorize these measurements associated with a robotics company according to level: nominal, ordinal, interval, or ratio.(a)Salesperson's performance: below average, average, above average.nominalordinal intervalratio(b)Price of company's stocknominalordinal intervalratio(c)Names of new productsnominalordinal intervalratio(d)Temperature (°F) in CEO's private officenominalordinal intervalratio(e)Gross income for each of the past 5 yearsnominalordinal intervalratio(f)Color of product packagingnominalordinal intervalratio
Solution
(a) Salesperson's performance: below average, average, above average. This is an ordinal level of measurement because the categories have a clear order or ranking.
(b) Price of company's stock. This is a ratio level of measurement because it has a clear order, equal intervals, and a true zero point (the stock cannot be worth less than $0).
(c) Names of new products. This is a nominal level of measurement because the categories are simply names with no inherent order or ranking.
(d) Temperature (°F) in CEO's private office. This is an interval level of measurement because it has a clear order and equal intervals, but no true zero point (0°F does not mean there is no temperature).
(e) Gross income for each of the past 5 years. This is a ratio level of measurement because it has a clear order, equal intervals, and a true zero point (income cannot be less than $0).
(f) Color of product packaging. This is a nominal level of measurement because the categories are simply names with no inherent order or ranking.
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