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A restaurant’s sales (in dollars) is an example of what level of data measurement?

Question

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Solution

The level of data measurement for a restaurant's sales (in dollars) is the ratio level.

Here's why:

  1. Nominal Level: This is the most basic level of data measurement where data is categorized without any order or priority. Examples include gender, hair color, or religion. Restaurant sales do not fit into this category.

  2. Ordinal Level: This level of data measurement involves data that can be ranked or ordered. Examples include rankings like 1st, 2nd, 3rd, etc. Restaurant sales do not fit into this category.

  3. Interval Level: This level of data measurement involves data that can be ordered, and you can quantify the difference between data points. Examples include temperature in degrees Celsius, where the difference between 20 and 30 is the same as between 30 and 40. However, restaurant sales do not fit into this category because there is a true zero point in sales (i.e., no sales).

  4. Ratio Level: This is the highest level of data measurement that involves data that can be ordered, you can quantify the difference between data points, and there is a true zero point. Examples include height, weight, and money. Restaurant sales fit into this category because you can order sales amounts, quantify the difference between sales amounts, and there is a true zero point (i.e., no sales).

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