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

###
**CFA Practice Question**

The years in which the U.S. gross domestic product decreased would be an example of which level of measurement?

A. ratio

B. interval

C. ordinal

**Explanation:**The correct answer is interval because it makes sense to talk about differences between years (1984 - 1963 = 21 years); ratios are meaningless since time did not begin in year 0.

###
**User Contributed Comments**
7

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

jgraham6 |
tricky |

Renaud1807 |
Well, the interval won't have the same range? so isn't it ordinal? |

charlie1 |
Interval. The range does not need to be the same for intervals. |

eboyd |
If you are talking about the total number of years in which the US GDP decreased, wouldn't it be possible to have the total equal zero? Hypothetically, if US GDP never decreased, the total would be zero, and if it decreased in 5 years, the total would be 5, and so on, right? |

Thecatz |
very tricky ! |

dagibbo |
Wouldn't this be ratio since the # of years in which the GDP decreased can't be less than 0? |

ConnerVP1 |
agree with ratio argument... |