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Business Research Methods


(12th Edition)
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You have data from a corporation on the annual salary of each of its zoo employees.

a)      Illustrate how the data can be presented as ratio, interval, ordinal, and nominal data.

b)      Describe the successive loss of formation as the presentation changes from ratio to
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Measurement scale is used to categorize the values assigned to the variables. The four scales of
measurements are as follows:
My Textbook Solutions
• The nominal scale information can be grouped into two or more categories, which is mutually
exclusive and collectively exhaustive.

• The ordinal scale includes the characteristics of nominal scale along with indication of the order.
It provides the ranking of the data.

• The interval scale includes the characteristics of nominal and ordinal along with concept of Business Precalculus Loose Leaf
Research... 13th Edition for...
equality of interval (i.e. distance).
12th Edition 16th Edition
• The ratio scale includes the characteristics of all nominal, ordinal and interval scale along with
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absolute zero or origin. This scale represents the actual amounts of variable.

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Step 2 of 3

In this case, there is a data available from a corporation on their annual salary for 200
employees. The measurement of these data using different scales is as follows:

• The nominal scale measures data into categorizes. Therefore, all 200 employees’ annual
salaries can be categorized based on permanent employees and third party employees, divisions
or departments wise and also designation wise. This provides the information

• The ordinal scale provides ranking to the data. Therefore, the information on highest salaried
employees to lowest salaried employee can be obtained. Similarly, highest paid division to lowest
paid division information can also be obtained for all 200 employees.

• The interval scale can measure the salary range based on designation wise. For instance: the
salary range for junior software employee is $5,000 - $6,500. For all the 200 employees, salary
range can be categorized based on designation

• Ratio scale is useful to make a comparison of number of times the salaries of senior engineers
is greater to the junior engineers. For instance: salaries of senior engineers are 2 times greater
than junior engineers.

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Step 3 of 3

b)

When the scale changes from ratio to nominal, the data presentation is restricted to categorical
information only. The interpretation that can be made using nominal scale is limited and does not
provide any key support to make key decisions. For instance: The ratio scale above provides
information that senior engineer salaries are 2 times greater than junior engineers. This helps
management to take a decision that this year it should be 3 times to the junior engineers to retain
the experienced employees. Data presentation using nominal scale cannot provide effective for
easy decision making.

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Chapter 11, Problem 5DQ Chapter 11, Problem 4DQ

You have data from a corporation on the annual Do you agree or disagree with the following
salary of each of its zoo employees.a)     Illustrate statements? Explain.a) Validity is more critical to
how the data can be... measurement than...

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