Question

Create a list of six variables related to this decision – three must be categorical in nature, and three must be numeric. Indicate how these variables are measured. For example, are they yes/no questions, Likert-scale questions, numeric values (what units?), etc.

The decision is: making the ordering process quicker for customers at a fast food establishment.

Answer 1

A categorical variable is a variable type with two or more categories. Sometimes called a discrete variable, it is mainly classified into two (nominal and ordinal).

For example, if a fast food establishment (restaurant) is trying to making the ordering process quicker for customers in a day according to type, we regard this as categorical data. When gathering the data, the restaurant will group the number of orders according to the type of items (burgers, pizza, sandwich, roll etc.) ordered.

In this case, the type of items ordered is the Categorical variable. Categorical Data Variables are divided into two, namely; ordinal variable and nominal variable.

Gender: This type of categorical data variable has no intrinsic ordering to its categories. For example, gender status is a categorical variable having two categories (male or female) with no intrinsic ordering to the categories.

List of food items: This type of categorical variable has an intrinsic ordering to its categories. For example, the name of food items included in the ordering process.

Interval data and ratio level variables: (also called continuous level variables) have the most detail associated with them. Mathematical operations such as addition, subtraction, multiplication, and division can be accurately applied to the values of these variables. For example the combo of food items that are ordered and calculate their price and full payment amount.

Numerical data is a data type expressed in numbers, rather than natural language description. Sometimes called quantitative data, numerical data is always collected in number form. Numerical data differentiates itself with other number form data types with its ability to carry out arithmetic operations with these numbers.

Time: The time of delivery is the numerical data variable in the decision of making the ordering process of fast food establishment quicker.

Order Number: Every customer is assigned by an order number by which he/ she know about their order.

Amount: The bill amount paid by the customer.