Categorical variables

Definition

Categorical variables are variables that represent distinct categories or groups. These variables can take on a limited number of possible values, often labels or names.

5 Must Know Facts For Your Next Test

1. Categorical variables are also known as qualitative variables.
2. They can be divided into two types: nominal and ordinal.
3. Nominal variables do not have a natural order, while ordinal variables do.
4. Examples include gender, race, and customer satisfaction levels.
5. Statistical methods like chi-square tests are commonly used to analyze categorical data.

Review Questions

• What is the difference between nominal and ordinal categorical variables?
• Can categorical variables be numerical? Provide an example.
• Which statistical test would you use to analyze categorical data?

Related terms

Nominal Variables: A type of categorical variable without a natural order or ranking among its categories.

Ordinal Variables: A type of categorical variable with a clear ordering or ranking among its categories.

Chi-Square Test:

A statistical method used to determine if there is a significant association between two categorical variables.