Identify each of the variables in the excel file credit approval decisions as categorical, ordinal, interval, or ratio and explain why.

Categorical -Homeowner Ratio -Credit Score Ratio-Years of Credit History Ratio-Revolving Balance Ratio-Revolving Utilization Categorical-Decision In this case variables that are Ratio are measurable such as credit score, years of credit history, etc. While on the other hand Homeowner and Decision are categorical as they can also be categorized into categories and cannot be measured.

Answer Link

MrRoyal MrRoyal · Answer 2 · 2022-03-01T15:00:11+01:00

The variables in the Excel file credit approval decisions are:

Categorical -Homeowner and Decision
Ratio - Revolving Balance, Years of credit history and credit score
Interval - Revolving Utilization

Categorical variables can only take either of two values.

e.g. true or false, yes or no, approve or reject

Hence, the categorical variables are: Homeowner and Decision

Intervals are variables represented in range

e.g. 1 to 100

Hence, the interval variable is: Revolving Utilization

Lastly, ratio variables are interval variables that have the possibility of a true zero

Hence, the ratio variables are Revolving Balance, Years of credit history and credit score