Final answer:
The statement in question is true as establishing a minimum of three quality categories is a recognized method for organizing and analyzing data effectively in business and other contexts.
Step-by-step explanation:
The statement “Under category rating procedures you should establish and define a minimum of three quality categories” is True. In many contexts, particularly when data needs to be managed and interpreted, establishing distinct quality categories can help in analyzing and reporting the data effectively.
For instance, student quiz scores might be recorded as numerical values but are often reported in categorical terms such as A, B, C, D, or F by the end of a term.
When considering taxonomic classification or data groupings in statistical analysis, it's also common to organize or set categories in a manner that aids meaningful interpretation. This may involve grouping categories together so that each has a sufficient number of observations, or designing them to reflect equal or meaningful distinctions in the data.