Categorical data is characterized by variables that represent categories or groups rather than numerical values. It can be divided into nominal data, which has no inherent order (e.g., colors or types of animals), and ordinal data, which has a defined order (e.g., ratings or rankings). Categorical data is often represented using labels or names, and it is analyzed using frequency counts or proportions rather than mathematical operations. Additionally, it is commonly visualized using bar charts or pie charts to illustrate the distribution of categories.
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