Why Is It Important to Understand Scales of Measurement

question 56

Multiple Choice

Why is it important to understand scales of measurement?

• A) The scale of measurement for the dependent variable determines the kind of statistical test that can be conducted.
• B) Scales of measurement are integral for inferential statistics (but not necessarily descriptive statistics).
• C) Scales of measurement are integral for descriptive statistics (but not necessarily inferential statistics).
• D) Researchers can only analyze data on interval and ratio levels of measurement.

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Definitions:

Operating Expenses

Expenses incurred in the normal operation of a business, excluding the cost of goods sold.

Net Sales

This is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Net Sales

The revenue from sales after deducting returned goods, allowances for damaged or missing goods, and any discounts allowed.