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Ordinal data are more informative than nominal data. When the ordering of categories becomes important, the data collected are called ordinal. Examples include companies ranked according to the quality of their product, companies ranked based on their annual revenues, the severity of burn types, or stage of cancer among cancer‐afflicted patients. Again, no addition, subtraction, multiplication, or division can be used on ordinal‐type data.

Other examples of ordinal data are represented by geographical regions, say designated as A, B, C, and D for shipping purposes, or preference of vendors who can be called upon for service, or skill ratings of certain workers of a company, or in electronics engineering, the color‐coded resistors, which represent ascending order data.