What type of data is characterized by having a limited set of defined values?

The type of data characterized by having a limited set of defined values is categorical data. This type of data consists of distinct categories that represent qualitative traits rather than a range of numeric values. Categorical data can be further classified into nominal and ordinal types.

Nominal data includes categories that cannot be ordered meaningfully, such as colors or types of animals, while ordinal data includes categories that have a meaningful order, such as ratings (e.g., poor, average, good). The fact that categorical data is limited to specific categories means it does not represent a continuous spectrum of values, which is a key distinguishing feature.

In contrast, continuous data refers to information that can take on any value within a given range, making it unsuitable for being categorized in the way categorical data is. Qualitative data often overlaps with categorical data but is a broader term that can include non-numeric descriptive information. Quantitative data, on the other hand, is numerical and can consist of either discrete or continuous values, further highlighting that only categorical data fits the description of having a limited set of defined values.