Which statement best characterizes nominal data?

Nominal data is best characterized by the fact that it cannot be ordered. This type of data consists of categories that do not have a specific order or ranking. For example, if you categorize people by their favorite colors (like red, blue, or green), there is no inherent ranking or ordering among these categories; they are simply different groups. Each category is distinct, and one does not naturally precede another.

The other options suggest characteristics that apply to other types of data but not to nominal data. For instance, nominal data does not allow for a hierarchy (inability to be ordered) and does not involve numerical values or scales, which are more relevant to ordinal, interval, or ratio data types. Thus, emphasizing that nominal data lacks order highlights its unique characteristics in the broader context of data classification.