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

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**CFA Practice Question**

If an administrator had someone count the number of people in each room of an office building, this data would be what level of measurement?

B. interval

C. ratio

A. nominal

B. interval

C. ratio

Correct Answer: C

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**User Contributed Comments**
12

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

Gina |
this data is nominal/categorical, and hence A. it's the frequency/number of people per room. there is no ranking, no intervals... |

Hamma |
But it has absolute zero unit. 0 people. |

jminard |
The answer is ratio as you can rank the data, do ratio calculations. |

Rozase |
yes... the thing is we can do calculation |

ramborob |
What calculations can you do? The only thing you can say is that there are ? number of people in that roomand the average per room, but what does this tell you? I believe the answer to this should be Nominal. |

Cooltallgal |
It is ordinal since there can be an absolute "Zero" value in a room. |

bwbarksdale |
ratio...for example, you could say that there are 3 times as many people in Room A as in Room B (intervals are equal and there is a true zero point). |

cp24 |
ratio - there is an absolute zero value |

bobert |
A percentage is a ratio, think about it that way. If you can get a percentage about something, it has to be a ratio. Example: 5 rooms lettered A through E, and there are 2, 1, 4, 3, 0, people in those rooms respectively. You can then get a percentage of people per room. Hope that clears it up a bit. |

BandB |
Ratio, as it has meaning in it and it is interpretable and calculatable, example for Normial shoulde be, 1 stands for girls, 2 stands for boys. and there is not a true meaning to the numbers in the Norminal case |

8thlegend |
If an administrator had someone count the number of people in each room of an office during lunch time, there will be 0. And yes such place exists. |

johntan1979 |
Definitely ratio. It will be nominal only if you are asked to check whether a room is empty or not --> categorical. |