Businesses in a country are listed by size: small, medium, and large. Explain why business size is an example of an ordinal-scal
ed variable. A. The size of a business is ordinal-scaled because it has numerical values that arise from a measuring process. B. The size of a business is ordinal-scaled because it has values that represent quantities. C. The size of a business is ordinal-scaled because it has values that can be used as an order or rank of a categorical variable. D. The size of a business is ordinal-scaled because it has numerical values that arise from a counting process.
Answer: C. The size of a business is ordinal-scaled because it has values that can be used as an order or rank of a categorical variable.
Step-by-step explanation: Ordinal variables are simply categorical in nature just like nominal variables, however, the difference exists in the fact that ordinal labels posses an ordered rank or level unlike nominal variables. Though the extent or width of the difference between these labels cannot be ascertained. In the scenario above, size of businesses are labeled qualitatively with labels such as : small, medium and large. This labels depicts and follow a certain order with small being the least, then medium, then large. Telling us large businesses are superior in size to small and medium and medium is superior to large. Though the extent of the difference cannot be accurately ascertained.
