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“Gender”, “marital status”, “nationality”, and “types of occupation” are typical nominal variables examples. These sorts of variables are commonly used in cross-sectional studies such as a population census.
Nominal values are the current monetary values. Real values are adjusted for inflation and show prices/wages at constant prices. Real values give a better guide to what you can actually buy and the opportunity costs you face.
Nominal variable is a categorical variable that follows the nominal scale and does not have an intrinsic order. Understand nominal variables using solved examples
The nominal value of any economic statistic means the statistic is measured in terms of actual prices that exist at the time. The real value refers to the same statistic after it has been adjusted for inflation. Generally, it is the real value that is more important.
In economics, the nominal values of something are its money values in different years. Real values adjust for differences in the price level in those years. Examples include a bundle of commodities, such as Gross Domestic Product, and income.
Examples of nominal data. At a nominal level, each response or observation fits only into one category. Nominal data can be expressed in words or in numbers. But even if there are numerical labels for your data, you can’t order the labels in a meaningful way or perform arithmetic operations with them.
This article gives an overall understanding of nominal variables, their characteristics, types, and examples of usage in different areas of implementation. Each type offers different insights which determine the appropriate statistical methods to be employed.
The nominal value of any economic statistic means that we measure the statistic in terms of actual prices that exist at the time. The real value refers to the same statistic after it has been adjusted for inflation.
Nominal Variable: An economic variable measured in current monetary terms. Examples include nominal GDP, nominal wages, and nominal interest rates. Real Variable: Adjusted for changes in price levels, providing a measure in physical units or constant prices.
Real variables are those where the effects of prices and/or inflation have been taken out. In contrast, nominal variables are those where the effects of inflation have not been controlled for. As a result, nominal but not real variables are affected by changes in prices and inflation. A few examples illustrate the difference: