What type of data is characterized by a finite set of values?

Categorical data is the correct answer because it consists of values that represent distinct categories or groups. Each value in categorical data corresponds to a specific label or category rather than a numeric or ordered value. As a result, categorical data is limited to a finite set of values, such as “yes” or “no”, “red”, “blue”, and “green”, or any other categories relevant to the analysis. This finite nature allows for simpler analysis when compared to other data types.

In contrast, continuous data encompasses an infinite range of values within a given interval, such as height, weight, or temperature, where decimal values can infinitely extend. Quantitative data typically refers to numerical data that can be measured, which may include both continuous and discrete types, making it broader than just categorical data. Qualitative data, while similar to categorical data, often focuses on non-numerical characteristics such as quality or traits, rather than the strictly defined categories found in categorical data.