The business size is an example of a categorical variable.
We know that, an ordinal variables are categorical in nature just like nominal variables.
But the difference is that ordinal variables posses an ordered rank unlike nominal variables.
In the scenario above, size of businesses are labeled qualitatively with labels such as : small, medium and large.
These labels follow a certain order with small being the least, then medium, then large. Telling us large businesses are superior in size to small and medium and medium is superior to large. Though the extent of the difference cannot be accurately ascertained.
Therefore, the business size is an example of a categorical variable.
Learn more about the categorial variable here:
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