A recent survey of 200 small firms (annual revenue less than $10 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: "Yes," "No," or "Don't Know." This data is best classified as
A) ratio scale.
B) ordinal scale.
C) interval scale.
D) nominal scale.

Question

Quizplus · Accepted Answer

The data collected from the survey is categorical in nature since it consists of responses categorized as "Yes," "No," or "Don't Know." Therefore, it is best classified as nominal scale. The other options, such as ratio, ordinal, and interval scales, are used to measure numeric values and do not apply to this type of data.

A Recent Survey of 200 Small Firms (Annual Revenue Less