Final answer:
The income of a group of 50 loan applicants is measured on a Ratio level of measurement as it is continuous, has a true zero, and permits the calculation of differences and ratios. the correct answer to the question is (d) Ratio level of measurement
Step-by-step explanation:
The income of a group of 50 loan applicants is obtained, and you are inquiring about the level of measurement for income. In the context of levels of measurement, there are four scales: Nominal, Ordinal, Interval, and Ratio.
Considering the characteristics of these scales:
- Nominal scale is used for categorizing data without any quantitative value.
- Ordinal scale presents an order of data, but the differences between data points cannot be quantified.
- Interval scale data has ordered units where the difference is meaningful, but there is no true zero point.
- Ratio scale is similar to the interval scale with the addition of a true zero, allowing for statements about how many times greater one measurement is when compared to another.
Income can take on any value above zero, is continuous, and has a true zero (no income). It can be used to compute differences and ratios, for example, one person can have an income that is twice as much as another. Therefore, the correct answer to the question is (d) Ratio level of measurement, as it contains all the properties of the other scales and also includes a meaningful zero point, allowing for the calculation of ratios.