Nominal
Nominal is a type of variable that is not quantifiable by numerical values. Instead, they are categorized into labels or categories. Examples of nominal variables include gender, blood group, and occupation.
Key characteristics of nominal variables:
- Categorical: Values are grouped into categories or labels.
- Non-numeric: Cannot be arranged in numerical order.
- Discrete: Values can only take on specific discrete categories.
- Examples: Gender, blood group, color of hair.
- Analysis: Primarily used for descriptive statistics and categorization.
Examples of nominal variables:
- Gender (male, female, non-binary)
- Blood group (A, B, AB, O)
- Occupation (engineer, teacher, doctor, etc.)
- Color of hair (black, blonde, red, etc.)
- Marital status (single, married, divorced)
Statistical analysis:
Nominal variables are primarily analyzed using descriptive statistics such as frequency tables, crosstabulations, and proportions. They can also be used in categorical regression models.
Data representation:
Nominal variables are typically represented using categorical data structures, such as arrays or lists. Each category is assigned a unique numerical code or label.
Note:
Nominal variables do not have an inherent order or sequence, therefore they are not suitable for analysis using statistical methods that require numerical data.
FAQs
What does “nominal” mean?
“Nominal” generally refers to something in name only, or a stated amount that may differ from the actual or true value.
What is an example of “nominal”?
An example of nominal is a “nominal fee,” meaning a very small or symbolic charge, not reflecting the full cost.
What is a nominal value in finance?
In finance, “nominal value” is the face or stated value of an asset or security, not adjusted for inflation or real market conditions.
What is the difference between nominal and real value in finance?
Nominal value is the stated value of money or an asset, while real value adjusts for inflation, reflecting the asset’s purchasing power.
