I do not see how (probabilistic) inference is appropriate here at all.
I assume that _all_ employees are rated. There is no sampling, random
or otherwise.

Jon Cryer

At 11:14 AM 8/15/01 -0300, you wrote:
>
>
>"Silvert, Henry" wrote:
>> 
>> I would like to add that with this kind of data [three-level ordinal] 
>> we use the median instead of the average.
>
>   Might I suggest that *neither* is appropriate for most purposes?  In
>many ways, three-level ordinal data is like dichotomous data - though
>there are a couple critical differences.
>
>   Nobody would use the median (which essentially coincides with the
>mode) for dichotomous data unless thay had a very specific reason for
>wanting that specific bit of information (and I use the word "bit" in
>its technical sense.)  By contrast, the mean (=proportion) is a lossless
>summary of the data up to permutation (and hence a sufficient statistic
>for any inference that assumes an IID model) - about as good as you can
>get.  
>
>  With three levels, the mean is of course hopelessly uninterpretable
>without some way to establish the relative distances between the levels.
>However, the median is still almost information-free (total calorie
>content per 100-gram serving <= log_2(3) < 2 bits).  I would suggest
>that unless there is an extremely good reason to summarize the data as
>ONE number, three-level ordinal data should be presented as a frequency
>table. Technically one row could be omitted but there is no strong
>reason to do so. 
>
>       "What about inference?"  Well, one could create various nice
>modifications on a confidence interval; most informative might be a
>confidence (or likelihood) region within a homogeneous triangle plot,
>but a double confidence interval for the two cutoff points would be
>easier. As for testing - first decide what your question is. If it *is*
>really "are the employees in state X better than those in state Y?" you
>must then decide what you mean by "better". *Do* you give any weight to
>the number of "exceeded expectations" responses?  Do you find 30-40-30
>to be better than 20-60-20, equal, or worse? What about 20-50-30?  If
>you can answer all questions of this type, by the way, you may be ready
>to establish a scale to convert your data to ratio. If you can't, you
>will have to forego your hopes of One Big Hypothesis Test.  
>
>       I do realize that we have a cultural belief in total ordering and
>single parameters, and we tend to take things like stock-market and
>cost-of-living indices, championships and MVP awards, and quality- of-
>living indices, more seriously than we should. We tend to prefer events
>not to end in draws; sports that can end in a draw tend to have
>(sometimes rather silly) tiebreaking mechanisms added to them. Even in
>sports (chess, boxing) in which the outcomes of (one-on-one) events are
>known to be sometimes intransitive, we insist on "finding a champion". 
>But perhaps the statistical community ought to take the lead in opposing
>this bad habit!
>
>       To say that "75% of all respondents ranked Ohio employees as having
>'Met Expectations' or 'Exceeded Expectations.' ", as a single measure,
>is not a great deal better than taking the mean in terms of information
>content *or* arbitrariness. Pooling  two levels and taking the
>proportion is just taking the mean with a 0-1-1 coding.  It says, in
>effect, that we will consider 
>
>       (Exceed - Meet)/(Meet - Fail) = 0 
>
>while taking the mean with a 0-1-2 coding says that we will consider 
>
>       (Exceed - Meet)/(Meet - Fail) = 1.
>
>One is no less arbitrary than the other. (An amusing analogy can be
>drawn with regression, when users of OLS regression, implicitly assuming
>all the variation to be in the dependent variable, sometimes criticise
>the users of neutral regression for being "arbitrary" in assuming the
>variance to be equally divided.)
>
>       -Robert Dawson
>
>
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                                                 ___________
----------------------------------------------- |           \
Jon Cryer, Professor Emeritus                  (             )
Dept. of Statistics  www.stat.uiowa.edu/~jcryer \            \_University
 and Actuarial Science   office 319-335-0819     \         *   \of Iowa
The University of Iowa   home   319-351-4639      \            /Hawkeyes
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"It ain't so much the things we don't know that get us into trouble. 
It's the things we do know that just ain't so." --Artemus Ward 


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