ACCA Applied Knowledge · Management Accounting · Summarising and analysing data
A manager ranks four suppliers as 1st, 2nd, 3rd and 4th based on delivery reliability. What type of data is this ranking?
The supplier ranking is ordinal data, because it places the suppliers in order of reliability without showing how big the differences between them are. Nominal data has no order, while interval and ratio data need meaningful, equal measurement gaps.
- ANominal data
- BOrdinal dataCorrect
- CInterval data
- DRatio data
Explanation
A ranking shows order but not the size of the gaps between positions, so it is ordinal. Nominal data would only label categories with no order. Interval and ratio data require equal, measurable differences, which ranks do not provide.
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