In statistics, what is the primary use of categorical variables?

The primary use of categorical variables is to describe a phenomenon qualitatively. Categorical variables are used to categorize or label distinct groups or characteristics without implying any numerical value or order. For example, they can represent categories such as gender, hair color, or type of pet, which are all classifications that provide descriptive information rather than numerical data.

This qualitative nature allows researchers to analyze patterns, trends, and relationships based on classifications, making it pivotal in fields such as social sciences where understanding group differences and similarities is essential. In contrast to quantitative variables, which can be measured and expressed numerically, categorical variables serve to provide insights into the nature or attributes of the data being studied.