What is the difference between categorical and numerical (quantitative) data?

Draft a word response to each of the bulleted questions below. Each question must have its own response and have a minimum of 50 words.


  1. The reading on Statistics for Business mentions patterns and how we can create models once we have identified a pattern. How would you define a pattern? How would you define a model?
  2. What are some examples of patterns do businesses take advantage of?
  3. What are some measurements of variation that we can apply to numerical data?
  4. With a Statistics for Business thought process, answer the following questions in 200-300 words.

    a) What is the difference between categorical and numerical (quantitative) data?


  1. b) Suppose you’re preparing a survey to collect customer satisfaction data. Three of the questions in the survey are:
  2. Gender (male / female)

    2. How satisfied are you with our service?

    Very satisfied / Satisfied / Not satisfied

    3. What is your Age Group (<25 / 25 – 40 / 41 – 65 / 65+)

    4. What is your Zip Code?

    Which questions would provide categorical data?


  1. A categorical variable denotes the state of residence for customers to a Web site. Would you prefer to see a bar chart, a pie chart, or a frequency table? Would it be useful to combine some of the categories? Why?
  2. StartupsThe Wall Street Journal (January 12, 2011) reported the results of a survey of reasons given by 18- 34-year-olds for not starting their own businesses. The 872 respondents gave the following reasons.

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