According to the Corporate Finance Institute (2020), Measurement level is a method of classifying data according to its mathematical and statistical properties. There are four levels of measurement, and they are: (nominal - ordinal - interval - ratio). Each level of them has a different use from the other. In this discussion, I will apply them to the construction field where I work.
1. Nominal Measurement:
It is the measurement according to classification into exclusive categories that do not accept arrangement or measurement on a numerical scale. So, this is a descriptive measurement (Market Research Guy, 2019).
Example: In construction, the types of building materials can be classified under this scale: brick, wood, concrete, iron, and copper, as these categories are distinct and have no numerical value.
2. Ordinary Measurement:
It is the measurement according to categories that can be arranged according to the superiority of its standards. Still, the distance between one type and the other cannot be mathematically limited. So, this is also a descriptive measurement (Market Research Guy, 2019).
Example: In the construction field, each work site has a different safety classification according to OSHA standards. There is a top hazardous work site, such as building nuclear reactors, and a safer work site, such as creating a green space in a public park. The criterion can be rated from 1 to 10, but the criterion is purely deductive and involves evaluation and guesswork.
3. Interval measurement:
It is a measurement by continuous standards where the distance between the values is equal, but there is no actual zero point. Addition and subtraction can be done in this scale, but there must be a value that can be measured. So this is a Quantitative Measurement (Market Research Guy, 2019).
Example: In the construction field, concrete temperatures can be measured in Fahrenheit to ensure suitability for casting works. In this measurement, the distance between the temperatures is equal, and there is no zero value since zero Fahrenheit, or Celsius, is also a temperature, not nothing.
4. Ratio Measurement:
It is a measurement between equal values that can be counted. Therefore, it accepts division and multiplication and can also be of zero value due to the absence of the measured quantity. So this is a Quantitative Measurement (Market Research Guy, 2019).
Example: In the construction field, concrete quantities can be measured in cubic yards. The value becomes zero when no quantity is present at the work site. The values here are proportional and can be compared using multiplication and division.
The type of scale I will use:
In the field of construction project management, we use all these measurements to create the specifications and quantities necessary to enter and win the bidding. Then, we use these measurements during work to write periodic and daily reports for the consultant and the project owner.
Conclusion
The level of measurement can define statistical analyses, and the higher the level of measurements, the more advanced statistics are allowed. For example, nominal data cannot be analyzed using frequency distributions and percentages, as they describe categories that do not accept classification. Ratio data can be analyzed using more advanced statistical techniques such as correlation and regression (Velleman & Wilkinson, 1993).
References
Corporate Finance Institute (2020). Level of Measurement. Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/other/level-of-measurement/
Market Research Guy (2019). Types of Data & Measurement Scales: Nominal, Ordinal, Interval and Ratio. Retrieved from https://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/
Velleman, P. F., & Wilkinson, L. (1993). Nominal, ordinal, interval, and ratio typologies are misleading. The American Statistician, 47(1), 65-72.