An example of an _____________ target is sales volume, which might contain a few discrete values such as low, medium, and high.

An example of an _____________ target is sales volume, which might contain a few discrete values such as low, medium, and high.

• A. Interval
• B. Ordinal
• C. Binary
• D. Nominal

Answer: (B)

An ordinal target is one that represents categories with a meaningful order but where the distances between the categories are not necessarily uniform or well-defined. In this context, sales volume categorized as low, medium, and high is an excellent example of ordinality because while we can rank these categories in terms of volume, the exact difference in sales figures between them is not specified. Having a few discrete values indicates that they aren't simply nominal categories (which have no natural order or ranking) and certainly are not continuous like interval targets (which have meaningful equidistant values). Binary targets involve only two outcomes, which does not fit the scenario provided. Thus, the nature of the sales volume classification demonstrates an ordinal relationship, perfectly aligning with the definition of ordinal targets in data structuring and analysis.

An ordinal target is one that represents categories with a meaningful order but where the distances between the categories are not necessarily uniform or well-defined. In this context, sales volume categorized as low, medium, and high is an excellent example of ordinality because while we can rank these categories in terms of volume, the exact difference in sales figures between them is not specified.

Having a few discrete values indicates that they aren't simply nominal categories (which have no natural order or ranking) and certainly are not continuous like interval targets (which have meaningful equidistant values). Binary targets involve only two outcomes, which does not fit the scenario provided. Thus, the nature of the sales volume classification demonstrates an ordinal relationship, perfectly aligning with the definition of ordinal targets in data structuring and analysis.