nominal value

Examples of nominal value in the following topics:

• Calculating Real GDP

  • Real GDP growth is the value of all goods produced in a given year; nominal GDP is value of all the goods taking price changes into account.
  • The nominal GDP is the value of all the final goods and services that an economy produced during a given year.
  • In economics, a nominal value is expressed in monetary terms.
  • For example, a nominal value can change due to shifts in quantity and price.
  • It transforms the money-value measure, nominal GDP, into an index for quantity of total output.

• Benefits

  • To the extent to which actual probability values differ from nominal probability values, the actual probability values tend to be higher than the nominal p values.
  • Although this sounds like a good thing because the Type I error rate is lower than the nominal rate, it has a serious downside: reduced power.
  • Tests assuming normality can have particularly low power when there are extreme values or outliers.
  • A contributing factor is the sensitivity of the mean to extreme values.
  • Because distribution-free tests do not assume normality, they can be less susceptible to non-normality and extreme values.

• Dollar Returns

  • The dollar return is the difference between the final value and the initial value in nominal terms.
  • The dollar return of a security is the difference between the initial and ending value.
  • The dollar return does not take into account things like the time value of money or how the amount of return earned per year; it is simply the difference in nominal values.
  • Dollar returns are valuable for comparing the nominal differences in investments.
  • The dollar return is the difference in value from year to year, plus the previous dollar return.

• Real Versus Nominal Rates

  • Real exchange rates are nominal rates adjusted for differences in price levels.
  • Currency is complicated and its value can be measured in several different ways.
  • A nominal value is an economic value expressed in monetary terms (that is, in units of a currency).
  • It is not influenced by the change of price or value of the goods and services that currencies can buy.
  • Therefore, changes in the nominal value of currency over time can happen because of a change in the value of the currency or because of the associated prices of the goods and services that the currency is used to buy.

• Collecting and Measuring Data

  • There are four main levels of measurement: nominal, ordinal, interval, and ratio.
  • There are four main levels of measurement used in statistics: nominal, ordinal, interval, and ratio.
  • Nominal measurements have no meaningful rank order among values.
  • Ordinal measurements have imprecise differences between consecutive values, but have a meaningful order to those values.
  • Distinguish between the nominal, ordinal, interval and ratio methods of data measurement.

• Types of Variables

  • A discrete variable cannot take the value of a fraction between one value and the next closest value.
  • Categorical variables may be further described as ordinal or nominal.
  • A nominal variable is a categorical variable.
  • Examples of nominal categorical variables include sex, business type, eye colour, religion and brand.
  • Distinguish between quantitative and categorical, continuous and discrete, and ordinal and nominal variables.

• Differences Between Real and Nominal Rates

  • Nominal rate refers to the rate before adjustment for inflation; the real rate is the nominal rate minus inflation: r = R - i or, 1+r = (1+r)(1+E(r)).
  • The real rate is the nominal rate minus inflation.
  • A lender would have no net benefit from such a loan because inflation fully diminishes the value of the loan's profit.
  • The relationship between real and nominal rates can be described in the equation:
  • Where r is the real rate, i is the inflation rate, and R is the nominal rate.

• High Resolution Spectra

  • In assigning mass values to atoms and molecules, we have assumed integral values for isotopic masses.
  • By designing mass spectrometers that can determine m/z values accurately to four decimal places, it is possible to distinguish different formulas having the same nominal mass.
  • Mass spectrometry therefore not only provides a specific molecular mass value, but it may also establish the molecular formula of an unknown compound.
  • Tables of precise mass values for any molecule or ion are available in libraries; however, the mass calculator provided below serves the same purpose.
  • Since a given nominal mass may correspond to several molecular formulas, lists of such possibilities are especially useful when evaluating the spectrum of an unknown compound.

• The GDP Deflator

  • Nominal GDP, or unadjusted GDP, is the market value of all final goods produced in a geographical region, usually a country.
  • That market value depends on the quantities of goods and services produced and their respective prices.
  • In other words, real GDP is nominal GDP adjusted for inflation.
  • If there is no inflation or deflation, nominal GDP will be the same as real GDP.
  • It is calculated by dividing nominal GDP by real GDP and multiplying by 100.

• Averages of Qualitative and Ranked Data

  • The nominal scale differentiates between items or subjects based only on their names and/or categories and other qualitative classifications they belong to.
  • The mode, i.e. the most common item, is allowed as the measure of central tendency for the nominal type.
  • On the other hand, the median, i.e. the middle-ranked item, makes no sense for the nominal type of data since ranking is not allowed for the nominal type.
  • Examples include, on one hand, dichotomous data with dichotomous (or dichotomized) values such as "sick" versus "healthy" when measuring health, "guilty" versus "innocent" when making judgments in courts, or "wrong/false" versus "right/true" when measuring truth value.
  • On the other hand, non-dichotomous data consisting of a spectrum of values is also included, such as "completely agree," "mostly agree," "mostly disagree," and "completely disagree" when measuring opinion .