The key in econometrics to what a particular concept means is often found in the title. In this case, for example ordinal data is data which is in ‘order’. This data would include grades received on a college exam, the varying income brackets that people are in or their respective rank in the military for example.
This type of data is also very useful in quantifying opinion. For example, if you were to ask a set of tourists their opinion regarding a given holiday, you could measure their opinion on a Likert Scale such as:
- Extremely enjoyable 2. Moderately enjoyable 3. Adequate 4. Unenjoyable 5. Extremely unenjoyable.
Such a Likert Scale as this one will always produce ordinal or ‘ordered’ data. However, the difference between each category in this case cannot be quantified.
That is ordinal data!
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