Nominal data
Examples include payment method, branch or product type. Frequencies and the mode can summarise them; assigning numbers to labels does not imply a ranking or equal numerical distances. Use consistent category definitions and consider how to handle records that fit more than one group.
Worked example
A payment dataset records card, cash or transfer. These categories have no natural first-to-last order, so they are nominal.
Common mistake
Treating code 3 for transfer as three times code 1 for cash, or assuming the numerical codes create a natural order.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |