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 \ Types of data & the scales of measurement

Analytics

THURSDAY, 30 JANUARY 2020

Types of data & the scales of

measurement

Data is a valuable asset – so much so that it’s the world’s most valuable resource.
That makes understanding the different types of data – and the role of a data
scientist – more important than ever. In the business world, more companies are
trying to understand big numbers and what they can do with them. Expertise in
data is in high demand. Determining the right data and measurement scales
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 enables companies to organise, identify, analyse and ultimately use data to inform
strategies that will allow them to make a genuine impact.

Data at the highest level: qualitative and

quantitative
WhatIt's
is Popular!
data? In short, it’s a collection of measurements or observations, divided
80two
into people downloaded
different types:a qualitative
program and quantitative.
guide in the last 24 hours.
Qualitative data refers to information about qualities, or information that cannot be
measured. It’s usually descriptive and textual. Examples include someone’s eye
colour or the type of car they drive. In surveys, it’s often used to categorise ‘yes’ or
‘no’ answers.

Quantitative data is numerical. It’s used to deGne information that can be counted.
Some examples of quantitative data include distance, speed, height, length and
weight. It’s easy to remember the difference between qualitative and quantitative
data, as one refers to qualities, and the other refers to quantities.

A bookshelf, for example, may have 100 books on its shelves and be 100
centimetres tall. These are quantitative data points. The colour of the bookshelf –
red – is a qualitative data point.

What is quantitative (numerical) data?

Quantitative, or numerical, data can be broken down into two types: discrete and
continuous.

Discrete data
Discrete data is a whole number that can’t be divided or broken into individual
parts, fractions or decimals. Examples of discrete data include the number of pets
someone has – one can have two dogs but not two-and-a-half dogs. The number
of wins someone’s favourite team gets is also a form of discrete data because a
team can’t have a half win – it’s either a win, a loss, or a draw.

Continuous data
Continuous data describes values that can be broken down into different parts,
units, fractions and decimals. Continuous data points, such as height and weight,
:
 can be measured. Time can also be broken down – by half a second or half an
hour. Temperature is another example of continuous data.

Discrete versus continuous

There’s an easy way to remember the difference between the two types of
quantitative data: data is considered discrete if it can be counted and is continuous
if it can be measured. Someone can count students, tickets purchased and books,
while one measures height, distance and temperature.

What is qualitative (categorical) data?

Qualitative data describes the qualities of data points and is non-numerical. It’s
used to deGne the information and can also be further broken down into sub-
categories through the four scales of measurement.

Properties and scales of measurement

Scales of measurement is how variables are deGned and categorised. Psychologist
Stanley Stevens developed the four common scales of measurement: nominal,
ordinal, interval and ratio. Each scale of measurement has properties that
determine how to properly analyse the data. The properties evaluated are identity,
magnitude, equal intervals and a minimum value of zero.

Properties of Measurement
:
 Identity: Identity refers to each value having a unique meaning.
Magnitude: Magnitude means that the values have an ordered relationship to
one another, so there is a speciGc order to the variables.

Equal intervals: Equal intervals mean that data points along the scale are equal,
so the difference between data points one and two will be the same as the
difference between data points Gve and six.
A minimum value of zero: A minimum value of zero means the scale has a true
zero point. Degrees, for example, can fall below zero and still have meaning. But
if you weigh nothing, you don’t exist.

The four scales of measurement

By understanding the scale of the measurement of their data, data scientists can
determine the kind of statistical test to perform.

1. Nominal scale of measurement

The nominal scale of measurement deGnes the identity property of data. This scale
has certain characteristics, but doesn’t have any form of numerical meaning. The
data can be placed into categories but can’t be multiplied, divided, added or
subtracted from one another. It’s also not possible to measure the difference
between data points.

Examples of nominal data include eye colour and country of birth. Nominal data
can be broken down again into three categories:

Nominal with order: Some nominal data can be sub-categorised in order, such as
“cold, warm, hot and very hot.”
Nominal without order: Nominal data can also be sub-categorised as nominal
without order, such as male and female.
Dichotomous: Dichotomous data is deGned by having only two categories or
levels, such as “yes’ and ‘no’.

2. Ordinal scale of measurement

The ordinal scale deGnes data that is placed in a speciGc order. While each value is
ranked, there’s no information that speciGes what differentiates the categories
from each other. These values can’t be added to or subtracted from.
:
 An example of this kind of data would include satisfaction data points in a survey,
where ‘one = happy, two = neutral, and three = unhappy.’ Where someone Gnished in
a race also describes ordinal data. While Grst place, second place or third place
shows what order the runners Gnished in, it doesn’t specify how far the Grst-place
Gnisher was in front of the second-place Gnisher.

3. Interval scale of measurement

The interval scale contains properties of nominal and ordered data, but the
difference between data points can be quantiGed. This type of data shows both the
order of the variables and the exact differences between the variables. They can be
added to or subtracted from each other, but not multiplied or divided. For example,
40 degrees is not 20 degrees multiplied by two.

This scale is also characterised by the fact that the number zero is an existing
variable. In the ordinal scale, zero means that the data does not exist. In the
interval scale, zero has meaning – for example, if you measure degrees, zero has a
temperature.

Data points on the interval scale have the same difference between them. The
difference on the scale between 10 and 20 degrees is the same between 20 and 30
degrees. This scale is used to quantify the difference between variables, whereas
the other two scales are used to describe qualitative values only. Other examples
of interval scales include the year a car was made or the months of the year.

4. Ratio scale of measurement

Ratio scales of measurement include properties from all four scales of

measurement. The data is nominal and deGned by an identity, can be classiGed in
order, contains intervals and can be broken down into exact value. Weight, height
and distance are all examples of ratio variables. Data in the ratio scale can be
added, subtracted, divided and multiplied.

Ratio scales also differ from interval scales in that the scale has a ‘true zero’. The
number zero means that the data has no value point. An example of this is height
or weight, as someone cannot be zero centimetres tall or weigh zero kilos – or be
negative centimetres or negative kilos. Examples of the use of this scale are
calculating shares or sales. Of all types of data on the scales of measurement,
data scientists can do the most with ratio data points.
:
 To summarise, nominal scales are used to label or describe values. Ordinal scales
are used to provide information about the speciGc order of the data points, mostly
seen in the use of satisfaction surveys. The interval scale is used to understand the
order and differences between them. The ratio scales gives more information
about identity, order and difference, plus a breakdown of the numerical detail within
each data point.

Using quantitative and qualitative data in

statistics
Once data scientists have a conclusive data set from their sample, they can start to
use the information to draw descriptions and conclusions. To do this, they can use
both descriptive and inferential statistics.

Descriptive statistics
Descriptive statistics help demonstrate, represent, analyse and summarise the
Gndings contained in a sample. They present data in an easy-to-understand and
presentable form, such as a table or graph. Without description, the data would be
in its raw form with no explanation.

Frequency counts
One way data scientists can describe statistics is using frequency counts, or
frequency statistics, which describe the number of times a variable exists in a data
:
 set. For example, the number of people with blue eyes or the number of people
with a driver’s license in the sample can be counted by frequency. Other examples
include qualiGcations of education, such as high school diploma, a university
degree or doctorate, and categories of marital status, such as single, married or
divorced.

Frequency data is a form of discrete data, as parts of the values can’t be broken
down. To calculate continuous data points, such as age, data scientists can use
central tendency statistics instead. To do this, they Gnd the mean or average of the
data point. Using the age example, this can tell them the average age of
participants in the sample.

While data scientists can draw summaries from the use of descriptive statistics
and present them in an understandable form, they can’t necessarily draw
conclusions. That’s where inferential statistics come in.

Inferential statistics
Inferential statistics are used to develop a hypothesis from the data set. It would
be impossible to get data from an entire population, so data scientists can use
inferential statistics to extrapolate their results. Using these statistics, they can
make generalisations and predictions about a wider sample group, even if they
haven’t surveyed them all.

An example of using inferential statistics is in an election. Even before the entire

country has voted, data scientists can use these kinds of statistics to make
assumptions regarding who might win based on a smaller sample size.

Using data visualisation to communicate

insights
Data visualisation describes the techniques used to create a graphic
representation of a data sample by encoding it with visual pieces of information. It
helps to communicate the data to viewers in a clear and e]cient way.

Characteristics of effective graphical displays

Effective visualisation can help individuals analyse complex data values and draw
conclusions. The goal of this process is to communicate Gndings as clearly as
possible. A graphic display that features effective messaging will show the data
:
 clearly and allow the viewer to gain insights and trends from the data set and
reveal the different Gndings between the data.

Data visualisation examples

The best visual representation of a data set is determined by the relationship data
scientists want to convey between data points. Do they want to present the
distribution with outliers? Do they want to compare multiple variables or analyse a
single variable over time? Are they presenting trends in your data set? Here are
some of the key examples of data visualisation.

A bar chart is used to compare two or more values in a category and how
multiple pieces of data relate to each other.
A line chart is used to visually represent trends, patterns and _uctuations in the
data set. Line charts are commonly used to forecast information.
A scatter plot is used to show the relationship between data points in a compact
visual form.
A pie chart is used to compare the parts of a whole.
A funnel chart is used to represent how data moves through different steps or
stages in a process.
A histogram is used to represent data over a certain time period or interval.
:
 Quantitative messages
Quantitative messages describe the relationships of the data. Depending on the
sample, there are different ways to communicate quantitative data.

Nominal comparison: Sub-categories are individually compared in no particular

order.
Time series: An individual variable is tracked over a period of time, usually
represented in a line chart.
Ranking: Sub-categories are ranked in order, usually represented in a bar chart.
Part-to-whole: Sub-categories are represented as a ratio in comparison with the
whole, usually represented in a bar or pie chart.
Deviation: Sub-categories are compared with a reference point, usually
represented in a bar chart.
Frequency distribution: Sub-categories are counted in intervals, usually
represented in a histogram.
Correlation: Two sets of measures are compared to identify if they move in the
same or opposite directions, usually represented in a scatter plot.

Expand your data science expertise

With data science becoming a skill in even greater demand, now is a perfect time
to expand your knowledge of the world’s most valuable resource: data. A degree in
data science will enable you to identify, analyse and present complex and
interwoven webs of data. You can then leverage these insights to make predictions
and create strategies, speciGcally in a business environment. The UNSW Master of
Data Science can give you the skills you need to unlock the power of data and help
businesses make better decisions, empowering them to drive signiGcant changes
and results.

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