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Chapter 1: Problem 37

Determine the level of measurement of each variable. Assessed value of a house

Short Answer

Expert verified
Ratio level

Step by step solution

01

Understand the Level of Measurement

Levels of measurement describe the nature of information within the values assigned to variables. There are four levels: nominal, ordinal, interval, and ratio.
02

Identify the Nature of the Variable

Identify the characteristics of the variable 'Assessed value of a house'. This value is numerical and can be measured with a meaningful zero point.
03

Determine the Level of Measurement

Since 'Assessed value of a house' can be quantified, ordered, and has a true zero point (i.e., a house can have an assessed value of $0), the appropriate level of measurement is 'ratio'.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Nominal Level
In the nominal level of measurement, variables are categorized without any order or ranking. This level is the most basic among the four. Categories are simply named labels that differentiate between items. For example, eye colors like blue, green, and brown are nominal measurements because they describe different categories. You cannot say that brown is 'greater' or 'less' than blue. They are just different.
Ordinal Level
The ordinal level of measurement involves categories that have a meaningful order or ranking. However, the differences between these ordered categories are not quantifiable. An example is the ranking of students in a class (1st, 2nd, 3rd, etc.). Here, you know that 1st is higher than 2nd, but you cannot measure how much higher the 1st rank is compared to the 2nd rank. It tells you 'order' but not 'quantity'.
Interval Level
The interval level of measurement has ordered categories with meaningful, quantifiable differences between them. However, this level lacks an absolute zero point. A classic example is the temperature scale in Celsius or Fahrenheit. You can say that 30 degrees is hotter than 20 degrees and even determine that the difference is 10 degrees. But, 0 degrees does not mean 'no temperature'鈥攊t is just another point on the scale.
Ratio Level
The ratio level of measurement includes ordered categories with meaningful differences and a true zero point. Variables at this level can be compared using their ratios. The 'assessed value of a house' is a perfect example. If one house is valued at \(200,000 and another at \)400,000, you can say that the second house is twice as valuable. Also, an assessed value of $0 indicates the complete absence of value. This level allows for meaningful statements about how much greater one value is compared to another.

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Most popular questions from this chapter

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