00:01
A quantitative variable is something that can be measured on a numerical scale.
00:05
If it makes sense to average the levels of that variable, then the variable is quantitative.
00:11
For example, age, if i have different ages, i could average them and it makes sense.
00:17
A categorical variable is something that can be separated into categories, or some of that can be named.
00:23
In our example, we were dealing with different types of businesses.
00:27
Those businesses were split up into the categories of manufacturing, large service, and small.
00:35
Because they're separated into these categories, that makes business types a categorical variable.
00:41
It wouldn't make sense to average these three because they're not numerical.
00:46
In part b, we need to find the percentage that are small businesses.
00:50
In order to do that, we're going to take the number of small businesses, divide it by the total, and multiply by 100%.
00:58
So in our example, there were 30 small businesses...