Intro to Business Statistics

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Nominal scale

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Intro to Business Statistics

Definition

A nominal scale is a level of measurement used for labeling variables without any quantitative value. It categorizes data into distinct groups or categories that are mutually exclusive.

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5 Must Know Facts For Your Next Test

  1. Nominal scales are used to label variables with no inherent order or ranking.
  2. Examples of nominal data include gender, nationality, and hair color.
  3. Mathematical operations like mean or median cannot be performed on nominal data.
  4. The only statistical measure applicable to nominal data is the mode.
  5. Chi-square tests are commonly used to analyze relationships between nominal variables.

Review Questions

  • What type of mathematical operations can be performed on nominal data?
  • Give two examples of variables that would be measured on a nominal scale.
  • Which statistical test is appropriate for analyzing relationships between nominal variables?
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