Which of the following best defines a categorical variable?

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A categorical variable is best defined as one that represents distinct categories. These categories can be either nominal, where the categories have no inherent order (such as colors or types of fruit), or ordinal, where the categories have a clear, ordered relationship (like rankings or grades).

Categorical variables are used to classify data into groups based on qualitative attributes rather than numerical values. For instance, survey responses that categorize employees into groups based on their job titles (e.g., manager, engineer, or technician) are considered categorical.

This understanding contrasts with other types of variables. For example, numerical variables specifically deal with quantifiable measurements, while categorical variables emphasize grouping based on characteristics. Moreover, while all variables can vary in some manner, it’s incorrect to say that categorical variables cannot be measured, as they can indeed be assessed in terms of frequency or proportion within their categories. Thus, the identification of a categorical variable is rooted in its role of categorizing data into specific groups rather than quantifying it.

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