How is categorical data differ from numerical data?

Categorical data represents characteristics or qualities and is divided into distinct categories, such as gender, color, or brand. It can be nominal (without an inherent order, like types of fruit) or ordinal (with a defined order, like satisfaction ratings). In contrast, numerical data consists of measurable quantities and can be discrete (countable, like the number of students) or continuous (measurable, like height or weight). The key difference lies in how the data is represented and analyzed, with categorical data focusing on groupings and numerical data on quantifiable values.