Step 1 :The level of measurement of the data in this case is ordinal. Ordinal data is a type of categorical data with an order (or rank). The options for gratuity - five dollars, ten dollars, fifteen dollars, and twenty dollars - can be ranked or ordered, hence they fall under the category of ordinal data. However, the differences between the values are not necessarily consistent or meaningful, which distinguishes ordinal data from interval and ratio data. For example, the difference between $5 and $10 is not necessarily the same as the difference between $15 and $20 in terms of service quality or customer satisfaction.