QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

22. An analyst gathers the price-earnings ratios (P/E) for the firms in the S&P 500

and then ranks the firms from highest to lowest P/E. She then assigns the number

1 to the group with the lowest P/E ratios, the number 2 to the group with the

second lowest P/E ratios, and so on. The measurement scale used by the analyst

is best described as:

A. ordinal.

B. interval.

C. nominal.