Which statement about data types in real estate analysis is correct?

• A. Qualitative data is numeric
• B. Quantitative data is numeric
• C. Both are always numeric
• D. Data type does not affect analysis

Answer: (B)

Data types in real estate analysis determine how you describe and analyze information. Quantitative data are numeric and represent quantities you can measure or count, such as sale price, square footage, or days on market. Qualitative data are categorical and describe qualities or classifications, like property type (single-family, condo), neighborhood, or condition.

The statement that quantitative data are numeric is correct because these values inherently convey amount and can be used in arithmetic and many statistical methods. You can compute averages, medians, trends, and regressions with these numbers.

Qualitative data, being categorical, are not numeric by nature. You might code categories with numbers for analysis, but that coding doesn’t make the data truly quantitative in essence. Also, the way you handle data matters: different analyses suit qualitative data (like frequency counts) versus quantitative data (like regression or price per square foot).