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IAI Actuarial Core Principles · Actuarial Statistics · Exploratory data analysis

An insurer's motor claims dataset contains the following fields: (i) vehicle registration state, (ii) number of claims in the last year, (iii) claim amount in rupees, (iv) customer satisfaction rating on a scale of 1 (poor) to 5 (excellent). Which row correctly classifies all four fields?

State is nominal, claim count is discrete, claim amount is continuous and the satisfaction rating is ordinal. The rating has a natural order but no guaranteed equal spacing, while state names have no order at all.

  1. A(i) nominal; (ii) discrete; (iii) continuous; (iv) ordinalCorrect
  2. B(i) ordinal; (ii) discrete; (iii) continuous; (iv) nominal
  3. C(i) nominal; (ii) continuous; (iii) continuous; (iv) interval-scaled numeric only
  4. D(i) nominal; (ii) discrete; (iii) discrete count; (iv) nominal
  5. (i) ordinal; (ii) continuous; (iii) discrete; (iv) ordinal

Explanation

State is a label with no order, so nominal. The number of claims is a count, so discrete. Claim amount is treated as continuous. A 1-5 rating has an order but unequal gaps, so ordinal. Option 1 swaps the nominal and ordinal labels.

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