Sandra Catrioni is a research analyst at Spellman Research Associates. She has just completed a study of customers for Brennan's, a department store in Tulsa, Oklahoma. She asked the question, "How much do you believe you spend on an average trip to a department store?" She realizes that the level of the measurement scale of the answer is ratio. However, for her client's presentation, she wants to create categories of the answers and put them in a bar chart. The categories will be of unequal amounts. The first category will be "Less than $10" and the second category will be "$10 to $25," and so on. What effect will this have on the measurement level of the new variable she will create containing the categories?

Question

Quizplus · Accepted Answer

Creating categories from a ratio scale variable results in an ordinal scale because the categories have a meaningful order but not equal intervals.

Sandra Catrioni Is a Research Analyst at Spellman Research Associates