Intro to Business Statistics

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Ratio scale

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Intro to Business Statistics

Definition

A ratio scale is a quantitative scale where there is a true zero point and equal intervals between values, allowing for meaningful comparison of differences and ratios. It enables calculations such as addition, subtraction, multiplication, and division.

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5 Must Know Facts For Your Next Test

  1. Ratio scales have an absolute zero that indicates the absence of the measured attribute.
  2. Examples include weight, height, and income.
  3. With ratio scales, you can compare both differences (e.g., one object is 5 units heavier) and ratios (e.g., one object is twice as heavy).
  4. All mathematical operations are valid on ratio scales: you can add, subtract, multiply, and divide the values.
  5. In statistical analysis, ratio data can be summarized using measures like mean, median, mode, range, and standard deviation.

Review Questions

  • What distinguishes a ratio scale from an interval scale?
  • Give two examples of real-world phenomena that are measured on a ratio scale.
  • Why is it important that a ratio scale has a true zero point?
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