Question

An example of an ordinal scale is executive title. Corporate executives can be ranked as assistant vice president, vice president, senior vice president, and president. A vice president is ranked higher than an assistant vice president, a senior vice president is ranked higher than a vice president, and so on. Find a couple more examples of business geared ordinal ranking and explain thoroughly utilizing references

Answer 1

Dear student, please comment in the case of any doubt and I would love to clarify it.

A categorical variable (sometimes called a nominal variable) is one that has two or more categories, but there is no intrinsic ordering to the categories. For example, gender is a categorical variable having two categories (male and female) and there is no intrinsic ordering to the categories.

An ordinal variable is similar to a categorical variable. The difference between the two is that there is a clear ordering of the variables. For example, suppose you have a variable, economic status, with three categories (low, medium, and high).

Examples of business geared ordinal ranking can be the income level(“less than 50K”, “50K-100K”, “over 100K”), employees can be ranked according to their income.

They can be categorized on the basis of satisfaction rating (“extremely dislike”, “dislike”, “neutral”, “like”, “extremely like”). How satisfied is an employee at his/her office is a crucial thing to know.

They can be categorized on the basis of education level (“high school”,” BS”,” MS”,” Ph.D.”) also, how educated they are can be a factor too.