Ordinal variables are everywhere. Data providing information about happiness, levels of customer satisfaction, employees’ satisfaction, mental stress, psychological well-being, societal trust, and other important variables are now regularly collected and analyzed by national governments, large multinational companies, and researchers. However, because these data are not directly observable or quantitatively measurable, they are thus not measured on objective cardinal units. This presents a key challenge when performing standard quantitative analysis.Continue reading
A few days ago a Twitter account representing tourism in Houston, posted the following Tweet. It shows analysis of BBQ restaurant reviews using a 5-star rating system. The results are… surprising… and some may even say laughable.Continue reading
I am very excited to share that my paper, “How Much Does the Cardinal Treatment of Ordinal Variables Matter? An Empirical Investigation” is now (finally) forthcoming in the journal Political Analysis. I wrote the first draft of this paper in my 2nd-year paper class at the University of Minnesota. So, publishing this paper in the official methods journal of the American Political Science Association is particularly rewarding.Continue reading
A long standing belief, held by many, is that winning the lottery actually makes people miserable. This belief is backed up by existing research in psychology finding that lottery winners were no more satisfied with their life than people who did not win the lottery. New research suggests this belief might be wrong.
Religion, spiritual practices, and faith are easily observable factors in the daily lives of people almost anywhere in the world. This leads many to speculate and theorize about the role of religion in driving economic and social outcomes. Positive correlations abound between religiosity and a host of factors that may influence economic success. Correlation, however, does not imply causation and pinning down the real causal relationship is complicated by the fact that people tend to choose their religion. Therefore, observing that people of faith experience different economic outcomes fails to account for the fact that unobservable personal characteristics may cause both religiosity and economic outcomes.
Concepts such as subjective well-being, satisfaction, happiness, trust, measures of quality, and even standardized test scores are all measured using an ordinal variable. This means that we know the rank of the response categories (e.g. a respondent reporting being “very satisfied” indicates they are more satisfied than if they had reported being “satisfied”), but we do not know the interval between response categories (e.g. we don’t know how much more satisfied “very satisfied” is compared to “satisfied”). This is contrasted with cardinal variables, such as earnings, where we know $10 is more than $5 and represents twice as much money.