What Is the Difference Between Ordinal and Nominal Levels of Measurement

question 3

Multiple Choice

What is the difference between ordinal and nominal levels of measurement?

• A)The ordinal measure has meaningful and constant differences between scale units.
• B)The ordinal measure ranks categories.
• C)The ordinal measure does not meet the requirement of being mutually exclusive.
• D)The ordinal measure does not rank categories.

Appreciate the risks associated with changes in an investment portfolio composition, such as interest rate risk, default risk, and maturity risk.

Grasp the concept of opportunity cost associated with holding cash and how it impacts financial decisions.

Identify the motivations behind a firm's need for liquidity, including precautionary, transaction, speculative, and float motives.

Analyze the primary reasons why firms have cash surpluses, including financing planned expenditures and investing funds.

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Definitions:

Flaws

Imperfections, defects, or faults that affect the appearance, functionality, or integrity of an object or process.

Process Capability Ratio

The process capability ratio is a statistical measure that quantifies how well a process can produce output within specified limits of variability.

Design Specifications

Detailed descriptions of the requirements for a product, including dimensions, materials, and performance criteria.

Variability

Any deviation from the optimum process that delivers perfect product on time, every time.