What is the key feature of a nominal scale?

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Study for the University of Central Florida QMB3602 Business Research for Decision Making Exam 1. Prepare with detailed questions and in-depth explanations to excel in your test! Enhance your decision-making skills effectively.

The key feature of a nominal scale is that it categorizes data only. Nominal scales are used to label variables without providing any quantitative value. For instance, this type of scale can classify data into distinct groups or categories, such as gender, blood type, or the types of fruits, where the categories are mutually exclusive and do not have a natural order.

Because a nominal scale serves the purpose of identifying and classifying data rather than measuring anything about the data, it does not support ranking, measuring differences, or having a defined zero point. Each category is unique, and while data can be grouped, it cannot be quantitatively described or ranked relative to one another. Thus, the primary function of a nominal scale is categorization, which makes the correct choice particularly important in the context of data classification.