What is Ratio scale?

Measurement scales are classified popularly under four categories: Nominal, Ordinal, Interval and Ratio scales.

Ratio scales are important when it comes to measurement scales because they tell us about the order, they tell us the exact value between units, and they also have an absolute zero–which allows for a wide range of both descriptive and inferential statistics to be applied. Good examples of ratio variables include height and weight.

Ratio scales provide a wealth of possibilities when it comes to statistical analysis. These variables can be meaningfully added, subtracted, multiplied, divided). The central tendency can be measured by mean, median, or mode; Measures of dispersion, such as standard deviation and coefficient of variation can also be calculated from ratio scales.

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Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
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