Which of the Following Is a Limitation of the Ordinal

question 90

Multiple Choice

Which of the following is a limitation of the ordinal scale of measurement?

• A) The ordinal scale of measurement represents a simple classification system.
• B) There is no way to measure central tendency for variables measured on the ordinal scale of measurement.
• C) When variables are measured on an ordinal scale of measurement, the intervals between numbers are not necessarily equal.
• D) All of the above are limitations of the ordinal scale of measurement.

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Definitions:

Administrative Expenses

Costs related to the general administration of a business, such as salaries of office staff, rent, and utilities.

Cash Basis

A method in accounting where revenues and expenses are recorded only when cash is received or paid out, respectively.

Statement of Cash Flows

A financial statement that summarizes a company's cash inflows and outflows over a specific period.

Sales Adjusted

A correction made to sales figures to account for various factors such as returns, allowances, or discounts.