What type of variable allows for the creation of a frequency distribution?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A frequency distribution is a summary of how often different values occur within a dataset, providing a clear view of the data distribution. The correct answer indicates that both categorical (qualitative) variables and quantitative variables can be used to create a frequency distribution.

Categorical variables, which include nominal and ordinal data, can have their categories tallied to show the number of occurrences for each category, such as the number of respondents choosing each product in a survey. This is essential for understanding trends, preferences, and group behaviors.

Quantitative variables, particularly discrete variables, also contribute to frequency distributions by showing how often certain numerical values appear. For example, if you have data on the number of sales made per day, you can display that data in a frequency distribution to see how many days had a specific number of sales.

This dual applicability of both categorical and quantitative variables ensures that the frequency distribution is a versatile tool for summarizing data. The option indicating "both a categorical variable and a quantitative variable" encompasses a broader range of data types that can be analyzed, making it essential in statistical analysis.

Other options might be too restrictive or only focus on one type of variable, missing the comprehensive nature of how frequency distributions can be utilized.

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