Ratio Measurement - Essay Example

The value of zero is very important in ratio measurement, as it is the only major factor that distinguishes ratio from interval measurements (Marr, 2010, p. 78). It is because of this value of zero that enables the formation of a fraction based comparison amongst two values of a variable. The most common use of this is the analysis of the growth of a company as witnessed in various news channels, such as the growth of sales on a year on year basis or other fundamental analysis factors such as return on investments are measured through ratios (for example, the revenues in 2011 are twice as much as what they were in 2010).

Thus, ratio measurements require a set of continuous data within which the disparity could be based on, time, demographics, or any other factor. But there should be no disparity in the type of variable. Most common forms of data that can be measured through ratios are annual results of a company (as discussed), statistical disparities amongst variables, census data, market research, fundamental analysis of companies, the progress of scientific experiments, etc. Variables such as weight, speed, and distance could be measured through the use of ratios.

Works Cited Kane, R. L., & Radosevich, D. M. (2011). Conducting Health Outcomes Research. Chicago: Jones & Bartlett Learning. Marr, B. (2010). The Intelligent Company: Five Steps to Success with Evidence-Based Management. New York: John Wiley and Sons.