Session Plan

Statistics Introduction & Applications

Data- Types of scales of measurement
Nominal Ordinal Interval Ratio
Scaling Techniques
Comparative Scaling Techniques (Attitude)
i. Paired Comparison
ii. Rank Order Scaling
iii. Constant Sum Scaling
iv. Q-Sort and Other Procedures
Non-comparative Scales
i. Graphic Rating
ii. Itemized Rating
i.
Likert
ii.
Semantic Differential
iii. Stapel
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Measurement and Scaling

Measurement Assigning numbers or some other symbols to
characteristics of certain objects. Assignment of numbers
permits a statistical analysis of the data.
Assignment must be isomorphic (one to one correspondence)
Same age group , same rupee figures should be assigned to a
household with identical age/income.
Scaling An extension of measurement involves creating a
continuum upon which measured objects are located.
Consider an attitude scale from 1 to 100. Each respondent is
assigned a number from 1 to 100, with 1 = Extremely
Unfavorable, and 100 = Extremely Favorable. Measurement is
the actual assignment of a number from 1 to 100 to each
respondent. Scaling is the process of placing the respondents
on a continuum with respect to their attitude.
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Levels of Data Measurement

Nominal Lowest level of measurement

Ordinal
Interval
Ratio Highest level of measurement

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Nominal Level Data

Numbers are used to classify or categorize

Purpose: Identification of an Object
When used for identification, there is a strict one-to-one correspondence
between the numbers and the objects.
The numbers do not reflect the amount of the characteristic possessed by
the objects.
Only a limited number of statistics, all of which are based on frequency
counts, are permissible, e.g., percentages, and mode.
Example: Employment Classification
1 for Educator
2 for Construction Worker
3 for Manufacturing Worker
Few More General Examples:
House Number (10 Janpath)
,
Telephone Number
Smart Card PIN
Number on Cricket T-Shirt
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Illustration From Class

Dividing the class in three groups:

Commerce Background

Science Background

Humanities Background
Other examples???????
Classifying students into Male and Female
For Male 1
For Female 2
The purpose of assigning numbers is identity or name the
characteristic.
If the numbers assigned were interchanged data study will not be
affected

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Ordinal Level Data

Numbers are used to indicate rank or order

Purpose: Represent Identity & Magnitude

A ranking scale in which numbers are assigned to objects to indicate the

relative extent to which the objects possess some characteristic.
Can determine whether an object has more or less of a characteristic
than some other object, but not how much more or less.
No Quantitative Properties Except Order & Equivalence

Relative magnitude of numbers is meaningful

Differences between numbers are not comparable

Percentile, quartile, median can be used to analyse ordinal level data
Example: Ranking productivity of employees
Position within an organization
1 for President
2 for Vice President
3 for Plant Manager
4 for Department Supervisor
5 for Employee

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Ordinal Numbers- Few More

Examples
Example:

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WTA Ranking of Mahesh Bhupathi

ICC ranking of Gautam Gambhir
Salary Grade
Floor Number
Performance Rating

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Example of Ordinal Measurement

1
6

i
2
4

n
i
s

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Interval Level Data

Purpose: Identity, Magnitude and Equal Interval

Distances between consecutive integers are equal

Relative magnitude of numbers is meaningful

Differences between numbers are comparable

Location of origin, zero, is arbitrary

Example: Fahrenheit Temperature ( Centigrade conversion)
Calendar Time All days are for 24 hours
Example: Monetary Utility (measure is utils)

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Interval Scale.

Numerically equal distances on the scale represent equal values in the

characteristic being measured.
It permits comparison of the differences between objects.
The location of the zero point is not fixed. Both the zero point and the
units of measurement are arbitrary.
Any positive linear transformation of the form y = a + bx will preserve
the properties of the scale.
It is meaningful to take ratios of scale values.
Statistical techniques that may be used include all of those that can be
applied to nominal and ordinal data, and in addition the arithmetic
mean, standard deviation, and other statistics commonly used in
marketing research.

Time displayed in the class vis a vis in time on your

handsets/watches)
?????????

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Ratio Level Data

Purpose: Identity, Magnitude, Equal Interval &

Absolute Zero

Highest level of measurement

Relative magnitude of numbers is meaningful

Differences between numbers are comparable

Location of origin, zero, is absolute (natural)

Examples: Height, Weight, and Volume
Monetary Variables, such as Profit and Loss, Revenues, and
Expenses
Financial ratios, such as P/E Ratio, Inventory Turnover, and
Quick Ratio.

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Ratio Scale contd.

Possesses all the properties of the nominal, ordinal, and interval scales.
It has an absolute zero point.
It is meaningful to compute ratios of scale values.
Only proportionate transformations of the form y = bx, where b is a
positive constant, are allowed.
All statistical techniques can be applied to ratio data.

Marks scored by the students in a test.

Height of the students of the class

Both the above cases, mean can be calculated.( Measure of Central
Tendency)
Standard Deviation can also be found (Measure of dispersion)

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Interval and Ratio scales- A Comparison

Interval Scale employs arbitrary zero point
Ratio Scale employs a true zero point
Scale of Temperature measured in celesius is Interval Scale.
Height as measured from floor has ratio scale
Apart from difference in the nature of zero point ,interval and ratio
scales have same properties and both employ cardinal numbers

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Usage Potential of Various

Levels of Data
Ratio
Interval
Ordinal
Nominal

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Data Level, Operations,

and Statistical Methods
Data Level

Meaningful Operations

Statistical
Methods

Nominal

Classifying and Counting

Nonparametric

Ordinal

All of the above plus Ranking

Nonparametric

Interval

All of the above plus Addition,

Subtraction, Multiplication, and
Division

Parametric

Ratio

All of the above

Parametric

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Types of scales
Zone

Code No.

Sales

Rank

(Rs. In Million)

Northern

01

483

Western

02

738

Eastern

03

265

Southern

04

567

Type

Nominal

Ratio

Ordinal

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Types of scale- another example

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Primary Scales of Measurement

Scale
Nominal

Ordinal

Interval

Numbers
Assigned
to Runners

Finish
7

Rank Order
of Winners

Performance
Rating on a

Finish
Third
place

Second
place

First
place

8.2

9.1

9.6

15.2

14.1

13.4

0 to 10 Scale

Ratio
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Time to
Finish, in

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Another Illustration.
Nominal
Scale

Ordinal
Scale

Interval
Scale

Ratio
Scale

Preference

Preference
Ratings

$ spent last

No. Store

Rankings

3 months

1. Lord & Taylor

2. Macys
3. Kmart
4. Richs
5. J.C. Penney
6. Neiman Marcus
7. Target
8. Saks Fifth Avenue
9. Sears
10.Wal-Mart
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2
8
3
1
5
9
6
4
10

79
25
82
30
10
53
95
61
45
115
IBS

1-7
5
7
4
6
7
5
4
5
6
2

11-17
15
17
14
16
17
15
14
15
16
12

0
200
0
100
250
35
0
100
0
10
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Quiz 1 Class Participation

1. A supervisor is asked by management to rank her five employees on
their value to the company on a scale from 1 to 5. This is an example of
what level of data?
a) nominal b) ordinal c) interval d) ratio e) exponential
2. A quality control technician samples 25 cartons of cereal, and weighs
them to determine the number ounces of cereal in each carton. The
number of ounces in the cartons is an example of what level of data?
a) nominal b) ordinal c) interval d) ratio e) exponential
3. Every hour, a quality control technician records the temperature (in
degrees centigrade) in the laboratory. These temperatures are an
example of what level of data?
a) nominal b) ordinal c) interval d) ratio e) exponential

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A Summary
Scales of Measurement - Applicability &
Usage
Particula
rs
Nominal

Ordinal

Interval

Ratio

Properties

Identity

Identity Magnitude

Identity Magnitude Equal

Interval

Identity Magnitude Equal

Interval Absolute Zero

Mathematical
Properties

Count

Rank Order

Addition Subtraction
(Division & Multiplication
in certain cases)

Addition Subtraction
Multiplication Division

Empirical
Operations

Determination of Determination of
Equality
greater or less

Determination of Equality Determination of Equality

of intervals
of ratios

Usage

Classification

Ranking Preference
Psychological Data

Index Numbers Level of

Knowledge About
products/brands

Descriptive
Statistics

Mode

Mode Median Range

Statistics

Mean Mode Median

Mean Mode Median
Range Variance Standard Range Variance Standard
Deviation
Deviation

Inferential
Statistics

Non Parametric Non Parametric

Chi Square
Friedman ANOVA
Spearman correlation

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Parametric t test Z test

ANOVA Pearson
Correlation

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Sales, volume, units

produced number of
customers and costs

Parametric t test Z test

ANOVA Pearson
Correlation

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Attitude Measurement
Attitude measurement plays an important role in research.
(Attitude of customers towards the products/services)
Attitude cannot be measured directly.
Many psychological variables form an integral part of
investigation made by the researcher
Attitude is derived from perceptions.

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Attitude Three components Cognitive,

Affective And Action (Behavioural)

Cognitive component- This represents an individuals

information and knowledge about an object. Includes
awareness of existence of object, beliefs about the
characteristics or attributes of the object and judgments towards
it.

Eg. If respondents are asked to name the companies

manufacturing pressure cooker, they may remember Hawkins,
Prestige etc. This is unaided recall awareness.
More names are likely to be remembered on the prompt of the
investigator. This is aided recall.

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Attitude Three components Cognitive,

Affective And Action

Affective Summarises a persons overall feeling or emotions

towards the objects.
Eg. Food cooked in pressure cooker is tasty, taste of orange
juice is good or taste of bitter gourd is bad.
If there are number of alternatives to choose from, the liking is
expressed in terms of preference for one over the other.

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Attitude Three components Cognitive,

Affective And Action

Action This is the behavioural component of Attitude

Reflects a predisposition to an action by reflecting the
consumers buying or purchase intention. It also reflects a
persons expectations of future behaviour towards an object.

Thus favourable attitude towards a product may not mean the

intention to buy. Intention to buy has to be backed by the
purchasing power of the consumer. Eg. If Vikrant is having a
favourable attitude to buy Audi , may not mean he is going to
purchase it.

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A Classification of Scaling Techniques- Attitude

Measurement
Scaling Techniques

Noncomparative
Scales

Comparative
Scales

Paired
Comparison

Rank
Order

Constant Q-Sort and Continuous Itemized

Sum
Other
Rating Scales Rating scales
Procedures

Likert

Semantic
Differential

Stapel

A Comparison of Scaling
Techniques

Comparative scales involve the direct comparison of

stimulus objects.
In non-comparative scales, each object is scaled
independently of the others in the stimulus set.

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Likert Scale
The Likert scale requires the respondents to indicate a degree of agreement or
disagreement with each of a series of statements about the stimulus objects.
Strongly
disagree
disagree

Disagree Neither
agree nor agree

Agree

Strongly

1. SS sells high quality merchandise.

2. SS has poor in-store service.

3. I like to shop at SS

The analysis can be conducted on an item-by-item basis (profile analysis), or a total

(summated) score can be calculated.

When arriving at a total score, the categories assigned to the negative statements by the
respondents should be scored by reversing the scale.
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Likert Scale contd

The total score can be calculated

The stimulus objects having high correlation can be
found

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Semantic Differential Scale

The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic meaning.
SS IS:
Powerful
Unreliable
Modern

--:--:--:--:-X-:--:--: Weak
--:--:--:--:--:-X-:--: Reliable
--:--:--:--:--:--:-X-: Old-fashioned

The negative adjective or phrase sometimes appears at the left side of

the scale and sometimes at the right.
This controls the tendency of some respondents, particularly those with
very positive or very negative attitudes, to mark the right- or left-hand
sides without reading the labels.
Individual items on a semantic differential scale may be scored on
either a -3 to +3 or a 1 to 7 scale.
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Stapel Scale
The Stapel scale is a unipolar rating scale with ten categories
numbered from -5 to +5, without a neutral point (zero). This scale
is usually presented vertically. Measures the direction and intensity of attitude
SS
+5
+5
+4
+4
+3
+3
+2
+2X
+1
+1
HIGH QUALITY
-1
-1
-2
-2
-3
-3
-4X -4
-5
-5

POOR SERVICE

The data obtained by using a Stapel scale can be analyzed in the

same way as semantic differential data.
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Basic Non-comparative Scales

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