Resolved: Ratio data cannot be negative
Thank you for the great course! Why ratio data cannot be negative? You are giving an example with revenue, but what about profit, which can be negative, and it also has an absolute zero?
1 answers ( 1 marked as helpful)
Olivier Maugain
Instructor
Thank you for the kind words.
Profit can also be used as ratio data. However, there must be an " absolute zero point" in the scale. You can compare it to a bank account balance: Although you can have a negative or positive account balance, there is a definite and non-arbitrary meaning of an account balance of 0.