Is payment discrete or continuous?

Payment; defined as currency, personal check, or credit card. It is a discrete numerical variable and represents a ratio scale.

What type of data is salary?

Example: salary data for is often recorded as interval data (i.e. just a number). operations such as finding the average salary.

What variable is monthly salary?

Salary is a discrete variable. Any variable that takes countable values, finite or infinite such values, is discrete.

Is salary a nominal variable?

In this case, salary is not a Nominal variable; it is a ratio level variable. The appropriate test of association between undergraduate major and salary would be a one-way Analysis of Variance (ANOVA), to see if the mean starting salary is related to undergraduate major.

Is salary a ratio?

Compa-ratio (comparison ratio) is a compensation metric that compares the salary an employee is paid to the midpoint of the salary range for their position or similar positions at other companies. Compa-ratios reveal how far an employee’s pay is from the market midpoint.

Is salary a continuous random variable?

Example (10) is rather ambiguous. Strictly speaking, it is a discrete variable, given that there is a basic unit of 1p below which measurements cannot be taken. However, 1p is so small in relation to an annual salary (even the annual salary of a teacher) that in practice it is treated like a continuous variable.

What is variable salary and fixed salary?

Fixed pay is the fixed amount of salary that an employee gets at the end of the month whereas Variable pay is the incentive paid to the employee, monetary or non-monetary, based on their performance for the month.

Is money a discrete or continuous variable?

In the real world, money could also be considered both discrete and continuous- you cannot have $ [math]\\pi [/math] in your bank account so therefore in that sense, money is discrete. However in economic studies such as estimating wage returns to education, money is always treated as a continuous variable, and this works well for analysis.

Is 1p a discrete or continuous variable?

🙂 Strictly speaking, it is a discrete variable, given that there is a basic unit of 1p below which measurements cannot be taken. However, 1p is so small in relation to an annual salary (even the annual salary of a teacher) that in practice it is treated like a continuous variable.

Is the penny a discrete or continuous quantity?

The penny is indivisible – it is the smallest atomic unit of currency in the US currency system. A continuous distribution should have an infinite number of values between $0.00 and $0.01. Money does not have this property – there is always an indivisible unit of smallest currency. And as such, money is a discrete quantity.

Is money artificially discrete?

In practice, though, even though money comes in artificially discrete units—dollars, forints, yen—monetary transactions treat it as continuously varying because the units are very small relative to the quantities being considered. When applying continuous methods to discrete practical problems, some discretion must be observed.