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CA Foundation · Quantitative Aptitude · Statistical Description of Data

Consider these four variables recorded for firms in Mumbai: (i) Celsius temperature of a cold-storage unit, (ii) annual turnover in ₹ crore, (iii) PIN code of the registered office, (iv) credit rating grade AAA, AA, A, BBB. Which option correctly matches them in order to interval, ratio, nominal, ordinal scales?

Celsius temperature is interval because its zero is arbitrary, turnover is ratio because it has a true zero, PIN code is nominal because it is just a label, and credit rating is ordinal because grades are ranked with unequal gaps.

  1. A(i) interval, (ii) ratio, (iii) nominal, (iv) ordinalCorrect
  2. B(i) ratio, (ii) interval, (iii) nominal, (iv) ordinal
  3. C(i) interval, (ii) ratio, (iii) ordinal, (iv) nominal
  4. D(i) ordinal, (ii) ratio, (iii) nominal, (iv) interval

Explanation

Celsius temperature has equal intervals but its zero is arbitrary, so it is interval. Turnover has a true zero and ratios make sense, so it is ratio. PIN code is only a label, so nominal. Credit grades have an order but unequal gaps, so ordinal. The second option wrongly calls temperature ratio, though 40°C is not twice as hot as 20°C.

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