Chapter 1, Problem 1PS

Four different beverages are sold at a fast-food restaurant: soft drinks, tea, coffee, and bottled water.

a. Explain why the type of beverage sold is an example of a categorical variable.

b. Explain why the type of beverage is an example of a nominal- scaled variable.

To determine

Explain the reason for considering the type of beverage sold to be a categorical variable.

Explanation of Solution

According to the provided information, a particular fast-food restaurant sells four different types of beverages, which are soft drinks, tea, coffee and bottled water.

Categorical variables are ones that describe the qualities of the object of interest. Here, the type of beverages sold is categorized into 4 categories that describe the quality and type of beverage. So, the variable is a categorical variable.

To determine

Explain why the type of beverages is a nominal scaled variable.

Explanation of Solution

Nominal scale of measurement is used for labelling a categorical variable, which is, more specifically, one that is not of a numerical nature and does not involve any order or ranking.

Here, the type of beverages is a categorical variable, where each type of beverage represents a different category that cannot be ordered in a specific order. Therefore, the variable is an example of a nominal-scaled variable.