How is categorical data defined?

Categorical data is defined as data that represents characteristics divided into categories. This type of data can be nominal or ordinal in nature. Nominal data refers to categories that do not have a specific order, such as colors or types of pets, while ordinal data refers to categories that have a meaningful order, such as rankings or levels of satisfaction.

In practical terms, categorical data allows researchers to sort and group data based on qualitative attributes. This is essential in various fields, including market research and social science, where understanding group characteristics is crucial for analysis and decision-making.

The other definitions do not align with the characteristics of categorical data. Data that can be measured numerically pertains to quantitative data, which is fundamentally different. Whole numbers are only one type of numerical data, and continuously valued data, on the other hand, refers to quantitative data that can take any value within a range, further distinguishing it from categorical data.