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CA Foundation · Quantitative Aptitude · Statistical Description of Data

A survey in Jaipur asks customers to rate a hotel as 'Poor', 'Average', 'Good' or 'Excellent'. Which statement about this data is correct?

The hotel ratings form ordinal data. The categories Poor, Average, Good and Excellent can be ranked in a meaningful order, but the gaps between them are not measurable or equal, and ratios have no meaning. So the scale is ordinal, not nominal, interval or ratio.

  1. AIt is ordinal, since the categories have a meaningful order but unequal or unknown gapsCorrect
  2. BIt is ratio, since 'Excellent' is twice as good as 'Average'
  3. CIt is nominal, since the categories are only names with no order
  4. DIt is interval, since the gaps between ratings are exactly equal

Explanation

The ratings can be ranked from Poor to Excellent, so the data is more than nominal. The distance between adjacent ratings is not measurable or equal, so it is not interval or ratio. Ordinal is the correct scale.

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