For each of the following variables, please identify the appropriate level of measurement/ primary scale: nominal,...

For each of the following variables, please identify the appropriate level of measurement/ primary scale: nominal, ordinal, interval, ratio

a. Stock price

Socioeconomic status (coded as “low income”, “middle income” and “high income”)
Number of days since you last ate in a restaurant (the exact number)
Number of days since you last ate in a restaurant coded as (1=Within the past week, 2=With the past 2 weeks, 3=Within the past month, 4=Within the past 3 months, 5=More than 3 months ago)
Zip code
Share of wallet (%)
Favorite sports team (e.g., “Yankees”, “Mets”, “Knicks”, etc.)
Likelihood to recommend (on an 11-point scale where 0=Definitely would NOT recommend and 10=Definitely would recommend)
Overall satisfaction (on a 7-point scale where -3=Extremely dissatisfied, -2=Dissatisfied, -1=Somewhat dissatisfied, 0=Neutral, 1 = Somewhat satisfied, 2= satisfied, 3=Extremely satisfied)
Distance from your home to the nearest gas station (in miles, e.g., 2.4 miles)

Solutions

Expert Solution

There are four scales of measurements - Nominal, Ordinal, Interval and Ratio.

A nominal scale is a scale where objects are described by labels, with no quantitative value. Each option is described only by its name and has no distinct value for each.
An ordinal scale is one where there is a clear order to the values, but the difference between two values is not clear
An interval scale is a scale where there is a clear order, and the difference between two values is known. The key thing about interval scales is that there is no "true zero", that is zero of whatever we are measuring.
A ratio scale is an interval scale with a true zero, meaning that we can take ratios of values.

a. Stock Prices - Ratio Scale of Measurement (Prices are numbers with a true 0)

b. Socio-economic Status - Nominal Scale of Measurement ( There are just categories which cannot be ordered)

c. Number of Days since you last ate at a restaurant (Exact Number) - Ratio Scale of Measurement ( Number of Days are exact number with a true Zero)

d. Number of Days since you last ate at a restaurant (coded) - Ordinal Scale of Measurement ( The Times are coded as Numbers making it ordinal)

e. Zip Code - Nominal Scale of Measurement ( a zip code is a number acting as a label or namesake)

f. Share of Wallet (%) - Ratio Scale of Measurement ( They are exact percentages with true 0)

g. Favorite Sports Team - Nominal Scale of Measurement ( They are names which do not have indisputable order)

h. Likelihood - It would be Ordinal Scale of Measurement. Since, recommendations are coded with numbers that have indisputable order.

i. Overall Satisfaction - Ordinal Scale of Measurement ( They are ordered numbers)

j. Distance from your home to the nearest gas station - Ratio Scale of Measurement (They are exact numbers)

orchestra answered 11 months ago

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