Fundamentals of Compensation Quantitative Methods

TYPES OF MEASUREMENTS

There are four basic kinds of measurements:

  • Nominal
  • Ordinal
  • Interval
  • Ratio

Nominal Measurements

The first of these, nominal measurements, are usually composed of numerical values that serve to identify discrete categories (although letters, symbols, etc., can also be used). The numbers are labels for the categories and imply no quantitative (measurable) differences that can be handled meaningfully in numerical operations. The numbers on license plates, for instance, constitute such a scale. Social Security numbers are another example.