I have salary data of 3000 employees ranging from 3000 – 10000 dollars.
Based on my understanding:(https://mathbitsnotebook.com/Algebra1/FunctionGraphs/FNGContinuousDiscrete.html)
- Continuous data is a set of data if the values belonging to the set can take on ANY value within a finite or infinite interval.
- Discrete data is a set of data if the values belonging to the set are distinct and separate (unconnected values).
If I apply the above definition to my data set,
- The salary of the group can take any value within a finite or
infinite interval. - The salary of each individual in the group is also distinct and
separate.
I am new to this and quite confused here. I understand the basic difference that continuous is measured and discrete is counted.
But is the salary of the group continuous or discrete?
Best Answer
@whuber beat me to it in the comments. It (probably) doesn't matter.
Perhaps a company only has a small set of distinct salaries covering a wide range of values, in which case you might treat them as factors in a linear model. But at many companies you will get a messier assortment of values.
In one sense you could think of salaries as discrete when you get into the details of rounding to the nearest cent, but in practice being careful about this distinction is rarely going to help you.
Just as microbiologists sometimes get away with assuming population sizes of bacterial communities are continuous, you can very likely get away with assuming continuity for salaries.
Start with your research question and figure out what you can assume with that in view.