Regarding categorical variables, which statement is correct?

Categorical variables are often referred to as qualitative variables, which is why this statement is correct. Categorical variables represent categories or groups, and they allow researchers to classify data into distinct groups based on non-numeric attributes. Examples of categorical variables include gender, nationality, or types of cuisine. These categories can be nominal, where the order does not matter (e.g., types of fruits), or ordinal, where there is a meaningful ranking (e.g., satisfaction ratings).

The other statements are not accurate in describing categorical variables. While some categorical variables can be ordered (as in ordinal variables), not all of them can be meaningfully ranked, which makes the first statement misleading. The second statement is incorrect because categorical variables do not necessarily involve numerical values; they can be purely descriptive. Lastly, categorical variables are not associated with interval scales, which are numerical scales with equal intervals between points; this is a characteristic of continuous variables rather than categorical ones.