Definition:
Categorical variable is a type of variable used in statistics and research, which represents data that can be divided into categories or groups based on specific characteristics. These categories are often non-numerical and are used to represent qualitative data, such as gender, color, or type of car.
Types of Categorical Variables
There are two main types of categorical variables:
Nominal Variables
Nominal variables are those that describe a characteristic or quality without any specific order or ranking. They represent data that can be divided into distinct categories, but these categories do not have any inherent hierarchy or ranking. Examples of nominal variables include gender, race, religion, or type of vehicle.
Ordinal Variables
Ordinal variables, on the other hand, have categories that can be ordered or ranked based on their value. They represent data that can be divided into distinct categories, and these categories have an inherent order or hierarchy. Examples of ordinal variables include levels of education, income brackets, or survey responses that use a Likert scale (e.g., strongly agree, agree, neutral, disagree, strongly disagree).