STATISTICS 8096 BBMM Trimester II

L4 Defining and collecting data II

Classifying data by levels of measurement, qualitative and
quantitative data

Dr. AHMAD M KHALID

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Classification of Data
o Data can be classified into four categories/scales
Nominal
Ordinal
Interval
Ratio

Scale Characteristics Examples Statistical Analysis

- Categorizes data with no inherent order - Customer segmentation (Luxury, Mid-Range, Budget)
Nominal - Mode, Frequency
- Labels assigned to groups - Product category (Clothing, Electronics, Furniture)
- Customer satisfaction survey (Very Satisfied,
- Categorizes data with a rank order
Ordinal Satisfied, Neutral, Dissatisfied, Very Dissatisfied) - Median, Order Statistics
- Differences between ranks may not be equal
- Brand loyalty program tiers (Bronze, Silver, Gold)
- Categorizes data with a rank order and equal
- Customer order value (in rupees)
Interval intervals between units - Mean, Standard Deviation
- Employee Performance Score (1-10)
- No true zero point
- Categorizes data with a rank order, equal intervals,
and a true zero point - Profit margin (%)
Ratio - Mean, Median, Standard Deviation, Ratios
- Ratios and comparisons of absolute values are - Market share (%)
meaningful

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Nominal Data Examples
Popular E-commerce Payment Methods Used in India

o Debit Card
Customer Demographics o Credit Card

Feature Category o Net Banking

Region North-East, North, East, South, West o UPI
Age Group 18-24, 25-34, 35-44, 45+
o E-wallets (Amazon, Paytm, Airtel)
Gender Male, Female, Trans-gender
o Cash on Delivery (COD)

Product Categories in Indian Manufacturing Sector

https://www.ibef.org/industry/manufacturing-sector-india/infographic

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Ordinal Data Examples

Customer Satisfaction Survey (e.g. Airtel) BEE Star Rating for Air Conditioners
Feature Category (Sample Label)
Network Coverage Excellent, Good, Fair, Poor
Call Quality Excellent, Good, Fair, Poor
Customer Service Excellent, Good, Fair, Poor

https://beeindia.gov.in/sites/default/files/Schedule_LCAC.pdf

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Interval Data Examples

The difference between 10°C The difference between 11 am and

and 20°C is the same as the 12 pm is the same as the difference
difference between 20°C and between 12 pm and 1 pm
30°C, even though the absolute
values are different.
Temperature has an arbitrary
zero point (0°C or 0°F) rather
than a true zero.

Day Timing

Thermometer Scale

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Ratio Data Examples

Growth vs Profit Key Indian

IT Companies

2023
https://www.jamboreeindia.com/know-how/comparing-the-best-mba-
colleges-in-india-salary-fees-and-more

https://www.forbesindia.com/article/take-one-big-story-of-the-day/it-services-
companies-q1-margins-show-early-signs-of-impact-of-slowdown/78397/1

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Likert Scale
Popular scale used to collect respondents' attitudes and opinions

Rennis Likert (1903-1981)

Social and Phycological
Scientist, University of
Michigan
https://www.voxco.com/blog/likert-scale-examples/

Likert Scales

• May be dichotomous, 3 point, 4 point, 5 point or 7 point scales

• May reflect agreement, value, relevance, frequency, importance,

quality, likelihood among others

• The best statistical measure is the mode/most frequent response

https://www.zonkafeedback.com/blog/likert-scale-surveys

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Qualitative and Quantitative data

Qualitative Data Quantitative Data

• qualitative and descriptive • numerical examples/values that can be measured
• capture qualities, characteristics, and attributes that • quantify variables and analyze relationships
cannot be measured with numbers.

"comfortable and easy to use."

"The staff was very friendly and helpful."

"The students were highly motivated"

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Cross-sectional and Time-series data

Key characteristics and difference between cross-sectional and time series data
Characteristic Cross-Sectional Data Time-Series Data
Focus Multiple variables Single variable
Timeframe Single point in time (snapshot) Multiple points in time (sequence)
Observations Different entities at the same time Same entity at different times
Analysis Compares characteristics across entities Identifies trends and patterns over time
Household income in a city at a given time, customer Stock prices over a year, monthly unemployment rates, GDP per
Examples
satisfaction survey across different age groups capita over the years
Visualization Bar charts, scatter plots Line charts, time series plots

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Cross-sectional data examples
Average CTC for 2023 at IIMs in India
IIM Ranchi INR 35.50 LPA
IIM Bangalore INR 35.31 LPA
World Crude Steel Production 2023 (Prov) IIM Calcutta INR 35.07 LPA
IIM Ahmedabad INR 32.79 LPA*
IIM Kozhikode INR 31.02 LPA
IIM Indore INR 30.21 LPA
IIM Lucknow INR 30.00 LPA
IIM Shillong INR 26.96 LPA
IIM Raipur INR 21.04 LPA
IIM Tiruchirappalli INR 20.55 LPA
IIM Udaipur INR 20.02 LPA
IIM Rohtak INR 18.73 LPA
IIM Kashipur INR 18.10 LPA
IIM Nagpur INR 16.74 LPA
IIM Sambalpur INR 16.63 LPA
IIM
INR 16.61 LPA
Vishakhapatnam
https://jpcindiansteel.nic.in/writereaddata/files/Trend IIM Amritsar INR 16.51 LPA
%20Report%20December%202023.pdf
IIM Jammu INR 16.43 LPA
IIM Bodh Gaya INR 14.96 LPA
IIM Sirmaur INR 14.45 LPA
https://www.shiksha.com/mba/articles/iim-
placements-blogId-19907

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Time-series data examples

https://www.ibef.org/industry/renewable-energy/infographic

https://www.statista.com/chart/31486/electric-vehicle-sales-in-india-by-year-and-type/

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