Variables & Measurement Scales
Variables & Measurement Scales
Measurement Scales
Nominal Data Ordinal Data Interval Data Ratio Data
Nominal Data
Made up of non-numerical categories. Objects/individuals are broken down into categories that have no numerical properties. For analysis numerical codes are used but they have no numerical meaning (weight). Nominal data is also called categorical data.
Ordinal Data
Objects/individuals are categorized and categories form rank order along a scale. It reflects ranking highest-lowest / biggestsmallest. Data measured on ordinal scale has identity and magnitude. Ordinal data is also known as ranked data.
Interval Data
Interval data is ranked in order and the distance between orders is measured in units of equal intervals.
Ratio Data
Fully numerical. In addition to order and equal unit of measurement, there is an absolute zero indication absence of the variable being measured. Ratios can be formed. 100 is twice as much as 50. Ratio data is also known as scale data.
Types of Variables
Independent Variable Dependent Variable Moderating Variable Intervening Variables
Independent Variable
An independent variable is one that influences the dependent variable in either a positive or negative way.
E.g. Research studies indicate that success new product development has an influence on the stock market price of the company. That is, the more successful the new product turns out to be the higher will be the stock price of that firm.
Dependent Variable
The dependent variable is the variable of the primary interest to the researcher. The researchers goal is to understand and describe or explain its variability or predict it. E.g. A Vice President is concerned that the employees are not loyal to the organization and in fact seem to switch their loyalty to other institutions.
Moderating Variables
The moderating variable is one that has strong contingent effect on the independent variable dependent variable relationship.
(That is, the presence of a third variable modifies the original relationship between the independent and dependent variable.)
E.g. It has been found that there is a relationship between the availability of reference manuals that manufacturing employees have access to and the product rejects. That is when workers follow the procedures laid down in the manual, they are able to manufacture products that are flawless. However only those workers who have inclination or urge to look into the manual every time a new product is to be adopted will produce a flawless product.
Intervening Variable
An intervening variable is one that surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it.
There is a time dimension to the intervening variable.
E.g. Research studies show that workforce diversity influences organizational effectiveness. The diverse workforce multiethnic, multiracial and multinational bring together their multifaceted expertise in problem solving resulting in creative synergy.
Exercises