Ordinal data
A rating such as low, medium and high can be ranked, but the difference between low and medium need not equal the difference between medium and high. Frequency tables and ordered summaries may be useful; calculations that assume equal numerical intervals require justification.
Worked example
Customer responses are ranked dissatisfied, neutral and satisfied. The categories have an order, but the gaps between them are not measured as equal quantities.
Common mistake
Treating rating codes 1, 2 and 3 as automatically having equal distances or multiplying them as though they were currency amounts.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |