In: Finance
Which of the following is true of interval scales?
a. There is a fixed zero point, where zero denotes the absence of the attribute being measured.
b. Arithmetic operations are limited to statistics such as the median or mode.
c. The numbers used to rank objects represent equal increments of the attribute being measured.
d. There is no necessary relationship between scale categories.
e. None of the above.
Let's first understand the meaning of interval scale.
1. In an interval scale you can take the difference between the two values but you cannot take the ratio between them. The is equal interval/distance between two values.
For example: Celsius scale.
If we say temperature in New York is 10 degree centigrade and temperature in Washington is 20 degree centigrade. We can say that there is a difference of of 10 degree centigrade between New York and Washington BUT we cannot say that Washington is twice as hot as New York.
2. interval scale is based on an arbitrary zero ( where as ratio scale is based on absolute zero. )
The option is C. As it meet the definition and meaning.
The option A,B, C doesn't fulfill the meaning of Interval scale.
As there is No fixed real Zero point.
It's not just restricted to mean & median.
There is a relationship between scale categories.
Thank you, hope you find it helpful.