A mortgage company randomly samples accounts of their...

A mortgage company randomly samples accounts of their time-share customers. State whether each of the following variables is categorical or numerical. If categorical, give the level of measurement. If numerical, is it discrete or continuous? a. The original purchase price of a customer's time-share unit b. The state (or country) of residence of a time-share owner c. A time-share owner's satisfaction level with the maintenance of the unit purchased (1: very dissatisfied to 5: very satisfied) d. The number of times a customer's payment was late

A mortgage company randomly samples accounts of their time-share customers. State whether each of the following variables is categorical or numerical. If categorical, give the level of measurement. If numerical, is it discrete or continuous?
a. The original purchase price of a customer's time-share unit
b. The state (or country) of residence of a time-share owner
c. A time-share owner's satisfaction level with the maintenance of the unit purchased (1: very dissatisfied to 5: very satisfied)
d. The number of times a customer's payment was late

Key Concepts

Categorical Variables

Categorical variables represent qualities or characteristics that can be sorted into groups or categories. They are non-numeric in nature, although they may sometimes be coded numerically. This type of variable answers questions such as 'which type?' or 'what category?'.

Numerical Variables

Numerical variables represent measurable quantities and are expressed as numbers. They can be subjected to arithmetic operations and convey meaningful quantitative information about the subject under study.

Levels of Measurement

Levels of measurement refer to the ways in which categorical variables can be classified. The nominal level is used for variables that have categories without any intrinsic order, while the ordinal level is for variables with a meaningful order among categories, although the intervals between the categories may not be equal.

Discrete Variables

Discrete variables are a type of numerical variable that can take on only specific, distinct values, often counts or whole numbers. They do not allow for fractions or decimals in the context of the measurement.

Continuous Variables

Continuous variables are numerical variables that can assume an infinite number of values within a given range. They typically measure quantities that are not restricted to separate values but include fractions and decimals, representing measurements such as lengths, weights, or prices.

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