Level of Measurement

Scales of Measurement

Research is a continuous process. Thousands of researchers are collecting

data every day for specific purposes. All the data collected for these
purposes cannot be analysed in the same statistical way because the
entities represented by the numbers are different. For this purpose, a
researcher has to have proper knowledge of the levels of data
measurement, represented by numbers that are to be analysed.
Measurement scale is an important part of data collection, analysis, and
presentation. In the data collection and data analysis, statistical tools differ
from one data type to another.
Scales of Measurement

Take two numbers, 2 and 4. These two numbers can be the weights of two
particular commodities. Obtaining an average of these two numbers is
always possible. However, if these two numbers are the class ranks of two
individuals, then the average of these two numbers will have no statistical
value. Hence, the same statistical procedure cannot be applied to analyse
these two numbers. If these two numbers are the serial order numbers of a
commodity in a shop, then this is also different from the above two cases. In
other words, numbers convey different meanings that are always case-
specific. Therefore, there is a need to understand the concept of scale of
measurement in order to use an appropriate statistical tool and technique,
based on different scales of measurement.
Data Measurement Levels (Types of Scales)

The following are the four common data measurement levels used:
• Nominal scale
• Ordinal scale
• Interval scale
• Ratio scale
Nominal Scale
A nominal scale is the 1st level of measurement scale in which the
numbers serve as “tags” or “labels” to classify or identify the objects. A
nominal scale usually deals with the non-numeric variables or the numbers
that do not have any value.
• Characteristics of Nominal Scale
• A nominal scale variable is classified into two or more categories. In this
measurement mechanism, the answer should fall into either of the
classes.
• It is qualitative. The numbers are used here to identify the objects.
• The numbers don’t define the object characteristics. The only permissible
aspect of numbers in the nominal scale is “counting.”
• Example:
• An example of a nominal scale measurement is given below-
What is your gender? M- Male F- Female
Here, the variables are used as tags, and the answer to this question
should be either M or F.

• For example, assume that a marketing research company wants to

conduct a survey in three towns of India—Bhopal, Nagpur, and
Baroda. While compiling the data, the company assigns the numeric
code “1” to Bhopal, “2” to Nagpur, and “3” to Baroda. In this case, “1”,
“2”, and “3” are the labels used to identify the three different towns.
• Other Examples- PAN of employees, Year of Birth, Gender of
respondents etc.
Ordinal Scale

The ordinal scale is the 2nd level of measurement that reports the ordering and
ranking of data without establishing the degree of variation between them. Ordinal
represents the “order.” Ordinal data is known as qualitative data or categorical data.
It can be grouped, named and also ranked.

Characteristics of the Ordinal Scale

• The ordinal scale shows the relative ranking of the variables

• It identifies and describes the magnitude of a variable
• Along with the information provided by the nominal scale, ordinal scales give the
rankings of those variables
• The interval properties are not known
• The surveyors can quickly analyse the degree of agreement concerning the
identified order of variables
Ordinal Scale
• For example, a manufacturing company administers a questionnaire to 150
consumers for obtaining the consumer perception for one of its products.
Each consumer is asked to judge between three given options: excellent,
good, or poor. Clearly, excellent is ranked the best and poor the worst with
good ranked between the two. If we want to assign numeric values to these
three attributes, “1” can be used for excellent, “2” for good, and “3” for poor.
• Ranking of school students – 1st, 2nd, 3rd, etc.
• Ratings in restaurants
• Evaluating the frequency of occurrences
• Very often
• Often
• Not often
• Not at all
Assessing the degree of agreement
• Totally agree
• Agree
• Neutral
• Disagree
• Totally disagree
Interval Scale
The interval scale is the 3rd level of measurement scale. It is defined as a quantitative
measurement scale in which the difference between the two variables is meaningful.
In other words, the variables are measured in an exact manner, not as in a relative way
in which the presence of zero is arbitrary.

Characteristics of Interval Scale:

• The interval scale is quantitative as it can quantify the difference between the values
• It allows calculating the mean and median of the variables
• To understand the difference between the variables, you can subtract the values
between the variables
• The interval scale is the preferred scale in Statistics as it helps to assign any numerical
values to arbitrary assessment such as feelings, calendar types, etc.
Interval Scale
• In interval level measurement, the difference between two consecutive
numbers is meaningful.For example, three students of BBA Logistics have
scored 65, 75, and 85 in the subject ‘Business Analytics’. These three
students can be rated in terms of their performances. However, the
difference in the numbers is also meaningful.
• Example:
• Likert Scale
• Net Promoter Score (NPS)
• Bipolar Matrix Table
Likert’s Scale
• How satisfied are you with the logistics service?
1. Very Dissatisfied
2. Dissatisfied
3. Neutral
4. Satisfied
5. Highly Satisfied

An interval scale allows you to measure all quantitative attributes. Any

measurement of interval scale can be ranked, counted, subtracted, or
added, and equal intervals separate each number on the scale
Ratio Scale
• The ratio scale is the 4th level of measurement scale, which is quantitative. It is a
type of variable measurement scale. It allows researchers to compare the
differences or intervals. The ratio scale has a unique feature. It possesses the
character of the origin or zero points.

Characteristics of Ratio Scale:

• Ratio scale has a feature of absolute zero

• It doesn’t have negative numbers, because of its zero-point feature
• It affords unique opportunities for statistical analysis. The variables can be orderly
added, subtracted, multiplied, divided. Mean, median, and mode can be calculated
using the ratio scale.
• Ratio scale has unique and useful properties. One such feature is that it allows unit
conversions like kilogram – calories, gram – calories, etc.
Ratio Scale
• Ratio level measurements possess all the properties of interval data with
meaningful ratio of two values.
• The difference between interval and ratio scales comes from their ability to
dip below zero.Ratio variables, on the other hand, never fall below zero.
Height and weight measure from 0 and above, but never fall below it.
• An example of a ratio scale is:
• What is your weight in Kgs?
• Less than 55 kgs
• 55 – 75 kgs
• 76 – 85 kgs
• 86 – 95 kgs
• More than 95 kgs