I\'m working on Statistical Techniques in Business and Economics (17th Edition).

Question

I'm working on Statistical Techniques in Business and Economics (17th Edition). I have a question about Chapter 1/ 20E. In this question's solution, mortgage type is considered ordinal data. But I don't see why it is ordinal because it seems there is no "rank" among the type. Why is it not nominal?

Problem Refer to the North Valley Real Estate data, which report information on homes sold in the area last year. Consider the following variables: selling price, number of bedrooms, township, and mortgage type. a. Which of the variables are qualitative and which are quantitative? b. How is each variable measured? Determine the level of measurement for each of the variables Step-by-step solution

Explanation / Answer

Here in this example Mortgage type is used as ordinal data. why ?

Ordinal data would be always used for ordered categories. So here in this examples Mortgage type has two category or more than that. (Fixed, Adjustable)

Ordinal scales provide good information about the order of choices,

mostly in  questionnaires and survey ordinal data wil lbe used for better results.

Nominal variables are used to “name,” or label a series of values.

"Nominal” could simply be called “labels.”

say for example what is your gender ?, what kind of style do you prefer ?, and where do you live ?, kind of naming variables we can use nominal data.

So in the above example of mortgage type as ordinal data is currect choice.

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