Question

One investigating company tracked all credit card purchase during 2012 and measured two variables: (1) the type of credit card used (VISA, MasterCard, American Express, or Discover), and (2) the amount (in dollars) of each purchase. Identify the level of each variable measured.

Answer 1

The level of each variable measured is (1)  the type of credit card is Nominal variable or a categorical variable which comes under multiple categories.(2) the amount (in dollars) of each purchase is ration variable it can have both discrete it starts at a fixed zero point.

Explanation:

• There are four levels of measurement, while analyzing data of columns.
• Nominal,Ordinal, Interval and ratio.
• Nominal each row of that particular column has specific identification.
• Nominal can have classification race,gender,ethnicity.
• Ordinal data is based on the ranking system, order or list.
• Numbers are still used arbitrary.
• Interval distance between the numbers Celsius,Fahrenheit and kelvin.
• Ratio data has an absolute zero point non-arbitrary, It is measuring .
• Blood pressure is a common example of ratio data.