Categorical data is a type of data that can be divided into distinct categories. This type of data is qualitative, meaning it describes qualities or characteristics rather than measurements or quantities.
Categorical data is not numerical and can include labels like "male" or "female," as well as categories like different colors, or, in this case, types of heating sources like gas, oil, and electricity.
When working with categorical data, each category represents a different group or feature, and we are often interested in understanding how these categories relate to one another.
- Can show differences between distinct groups
- Does not have a natural order or ranking
- Examples include gender, types of housing, or customer satisfaction levels
By identifying the data as categorical, we understand that our goal will be to differentiate and compare these discrete options rather than evaluate continuous or numerical values.