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Question 1

Nominal Scales

Answer 1

Different statistical methods use different levels of measurement

This provides the least amount of information

Counted with no order

Ex.) Assigning the number 1 to a municipal bond fund and the number 2 to a corporate bond fund

Question 2

Ordinal Scales

Answer 2

Ordinal scales assign observations to a category then the categories are ordered based on some characteristic

ex.) 100 100 assigned as top performing and the next 100 assigned as second top performing and so forth

There is no additional information outside of that such as how much the top 100 out performs the next top 100 but just that is does

Question 3

Interval Scale

Answer 3

Provide relative ranking

Like ordinal scales except that the difference between the scales are always equal

Question 4

Frequency Distribution

Answer 4

Tabular presentation of statistical data; summarizes the data by assigning it to specified groups or intervals

Data used may be used to measure any type of measurement scale