- CFA Exams
- 2021 CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 2. Measurement Scales

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**CFA Practice Question**

The following chart illustrates the breakdown of a survey of 300 bachelors, living in Florida, as to their favorite fast food restaurant.

Burger King ================= 51

Hardee's =============== 45

McDonald's ====================== 66

Taco Bell ========== 30

Wendy's ============================ 84

Other ======== 24

B. nominal

C. ordinal

Favorite Fast Food Restaurant

Burger King ================= 51

Hardee's =============== 45

McDonald's ====================== 66

Taco Bell ========== 30

Wendy's ============================ 84

Other ======== 24

What level of data is the number of bachelors?

A. ratio

B. nominal

C. ordinal

Correct Answer: A

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**User Contributed Comments**
19

User |
Comment |
---|---|

ReaClute |
Is this right? I answered ordinal. |

peter |
It's right as you can compute ratios of these numbers. |

Gina |
no way. this data is categorical, hence answer nominal. there is no relation (like rank) between the variables let's say burger king and taco bell. try to imagine how you would plot this (or any) data in a graph, and what meaning you can make out of it. |

Iyal |
So ratio or nominal? |

stefdunk |
it's ratio. wendy's has more than twice as many as taco bell. you can plot this as a bar chart, and there is an absolute zero. We're counting an exact number of people here. |

rmiter |
i think answer is nominal |

yanpz |
I think it's ratio, because the numbers 51, 45, etc represent the number of persons surveyed pick the coresponding restaurant, so it's absolute number with a possible zero. If it's zero, it means nobody pick that restaurant. So it's ratio. |

orfeus |
d, ratio scale, doesnt matter that scale consists of integers only |

orfeus |
thus ratio should be correct. |

mtcfa |
It's ratio by all means: the data represent bachelors and are separated by the same interval (1 in this case); and there is an absolute zero. |

bwbarksdale |
it's a ratio scale because, for example, you could say that the results of the sample say that people like wendy's 2.8 times as much as taco bell (84/30=2.8); intervals are equal and there is a true zero point. |

studyprep |
Those who think it is nominal, must see its definition again. In nominal type category, you can only put type of things. e.g. in restaurant A Seniors and in restaurant B Younger. or Type 1 growth Stocks and Type 2 Value stocks, and so on. ratio is the correct answer. E.g. if in Restaurant A 200 people this month and in Restaurant B 300 people this month. this is ratio.. you know total people = 500 and you can find the ratios for each restaurant goers. |

hannovanwyk |
The answer is most definitely ratio. all the explanations for ratio above is correct. |

Larkin |
right |

safash |
who ever said nominal is really asking for repetation of this reading again!! |

2014 |
Its Frequency distribution guys Nominal |

2014 |
Ratio too can be frequency distribution sorry |

khalifa92 |
ratio, true zero exists with equal intervals between variables. |

mcbreatz |
I think its just a matter of reading the question. "What level of data is the number or bachelors?" You can have 0 bachelors. 2 Bachelors is twice as many as 1. The rest of the question is a distraction. |