Question

“Salaries of the employees in ICAR”, is an example of which level of measurement?

• A. Nominal
• B. Ordinal
• C. Interval
• D. Ratio

Hint:

To identify a Ratio scale, ask: "Does a value of 0 mean none of the variable exists?" and "Can I say one value is twice as large as another?"
If the answer to both is yes (as with money, height, weight, or distance), it is a Ratio scale.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
In statistics, data is classified into four levels of measurement (scales): Nominal, Ordinal, Interval, and Ratio (proposed by S.S. Stevens).
These levels determine which statistical analyses are appropriate for a given dataset.

Step 2: Detailed Explanation:
Let us analyze the properties of the "Salaries of employees" variable:
- Nominal Scale: Used for categorization without any quantitative value or order (e.g., gender, eye color).
- Ordinal Scale: Shows order or ranking, but the intervals between ranks are not equal or quantifiable (e.g., job satisfaction rating, army ranks).
- Interval Scale: Numeric data with equal, quantifiable intervals between values, but without a true, absolute zero point (e.g., temperature in Celsius or Fahrenheit).
- Ratio Scale: Has all the properties of the interval scale, plus an absolute, non-arbitrary zero point.
- Salaries are measured in monetary units (e.g., Rupees or Dollars).
- There is a true zero point: a salary of zero means no income is earned.
- Ratios are meaningful: an employee earning Rs. 1,00,000 earns exactly twice as much as someone earning Rs. 50,000.
Therefore, salaries are measured on a Ratio scale.

Step 3: Final Answer:
“Salaries of the employees in ICAR” is an example of a Ratio level of measurement.