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This document discusses various methods for summarizing categorical and quantitative data through tables and graphs. For categorical data, it describes how to create frequency distributions, relative frequency distributions, percent frequency distributions, bar charts, and pie charts. For quantitative data, it discusses frequency distributions, histograms, dot plots, ogives, and cumulative distributions. It also introduces stem-and-leaf displays, crosstabulations, and scatter diagrams for exploring relationships between two variables.

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frtis
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71 views22 pages

CH 2 Notes Filled

This document discusses various methods for summarizing categorical and quantitative data through tables and graphs. For categorical data, it describes how to create frequency distributions, relative frequency distributions, percent frequency distributions, bar charts, and pie charts. For quantitative data, it discusses frequency distributions, histograms, dot plots, ogives, and cumulative distributions. It also introduces stem-and-leaf displays, crosstabulations, and scatter diagrams for exploring relationships between two variables.

Uploaded by

frtis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 2: Descriptive Statistics Tabular and Graphical Presentations

Study Modules (PPT presentations):

Types of Data and Scales of Measurement


Tabular and Graphical Presentations of Qualitative Data
Tabular and Graphical Presentations of Quantitative Data I
Tabular and Graphical Presentations of Quantitative Data II

Excel Tutorial:

Frequency Distribution Using COUNTIF function


Bar Graphs Using Chart Tools
Crosstabulation Using Pivot Table

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Chapter 2: Descriptive Statistics Tabular and Graphical Presentations (Part A)

I. Summarizing Categorical Data


o Categorical Data use labels or names to identify categories of like items
1. Frequency Distribution
A frequency distribution is a tabular summary of data showing the frequency (or
number) of items in each of several nonoverlapping classes.
The objective is to gain insight about the data that cannot be quickly obtained
by looking only at the original data.

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2. Relative Frequency Distribution


The relative frequency of a class is the fraction of the proportion of data items
belonging to the class.
A relative frequency distribution is a tabular summary of a set of data showing
the relative frequency for each class.
3. Percent Frequency Distribution
The percent frequency of a class is the relative frequency multiplied by 100.
A percent frequency distribution is a tabular summary of a set of data showing
the percent frequency for each class.

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4. Bar Chart
A bar chart is a graphical device for depicting categorical data.
On one axis (usually the horizontal axis), we specify the labels that are used for
each of the classes.
A frequency, relative frequency, or percent frequency scale can be used for the
other axis (usually the vertical axis).
Using a bar of fixed width drawn above each class label, we extend the height
appropriately.
The bars are separated to emphasize the fact that each class is a separate entity.

Reference: Using Excels Chart Tools to Construct a Bar Chart and a Pie Chart
(p.42)
Bar Graphs Using Chart Tools
Pareto Diagram
In quality control, bar charts are used to identify the most important
causes of problems.
When the bars are arranged in descending order of height from left to
right (with the most frequently occurring cause appearing first) the bar
chart is called a Pareto diagram.
This diagram is named for its founder, Vilfredo Pareto, an Italian
economist.
5. Pie Chart
The pie chart is a commonly used graphical device for presenting relative
frequency and percent frequency distributions for categorical data.
First draw a circle; then use the relative frequencies to subdivide the circle
into sectors that correspond to the relative frequency for each class.
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Since there are 360 degrees in a circle, a class with a relative frequency
of .25 would consume 90 degrees of the circle.

Example: Marada Inn

Insights Gained from the Pie Chart


One-half of the customers surveyed gave Marada a quality
rating of above average or excellent (looking at the left side
of the pie). This might please the manager.
For each customer who gave an excellent rating, there were
two customers who gave a poor rating (looking at the top of
the pie). This should displease the manager.
Crosstabulation Using Pivot Table
From the above link you seen how Excels COUNTIF function can
be used to develop a frequency distribution and Excels Chart
Tools can be used to create bar and pie charts.
But there is a more powerful set of Excel tools that can be used
for categorical data (Use the above link for instructions):
o PivotTable report
o PivotChart report

II. Summarizing Quantitative Data


o

Quantitative Data are numerical values that indicate how much or how many

1. Frequency Distribution

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Note on Number of Classes and Class Width


In practice, the number of classes and the appropriate class width are
determined by trial and error.
Once a possible number of classes is chosen, the appropriate class width
is found.
The process can be repeated for a different number of classes.
Ultimately, the analyst uses judgment to determine the combination of
the number of classes and class width that provides the best frequency
distribution for summarizing the data.
Guidelines for Determining the Class Limits:
Class Limits must be chosen so that each data item belongs to one and
only one class.

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The lower class limit identifies the smallest possible data value assigned
to the class.
The upper class limit identifies the largest possible data value assigned
to the class.
The appropriate values for the class limits depend on the level of
accuracy of the data.
An open-end class requires only a lower class limit or an upper class
limit.

Reference: Using Excels PivotTable Report to Construct a Frequency


Distribution (p. 49)
2. Relative Frequency and Percent Frequency Distributions

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3. Dot Plot

One of the simplest graphical summaries of data is a Dot Plot.


A horizontal axis shows the range of data values
Then each data value is represented by a dot placed above the axis.

Another common graphical representation of quantitative data is a


histogram.
The variable of interest is placed on the horizontal axis.
A rectangle is drawn above each class interval with its height
corresponding to the frequency, relative frequency, or percent
frequency.

4. Histogram

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Unlike a bar graph, a histogram has no natural separation between


rectangles of adjacent classes.
Reference: Using Excels Chart Tools to Construct a Histogram (p.54)

5. Cumulative Distributions
Cumulative frequency distribution- shows the number of items with values
less than or equal to the upper limit of each class.
Cumulative relative frequency distribution shows the proportion of items
with values less than or equal to the upper limit of each class.
Cumulative percent frequency distribution shows the percentage of
items with values less than or equal to the upper limit of each class.
The last entry in a cumulative frequency distribution always equals the total
number of observations.
The last entry in a cumulative relative frequency distribution always equals
1.00.
The last entry in a cumulative percent frequency distribution always equals
100.

Page | 11

6. Ogive
An Ogive is a graph of a cumulative distribution
The data values are shown on the horizontal axis.
Shown on the vertical axis are the :
o Cumulative frequencies, or
o Cumulative relative frequencies, or
o Cumulative percent frequencies
The frequency (one of the above) of each class is plotted as a point.
The plotted points are connected by straight lines.

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Chapter 2: Descriptive Statistics Tabular and Graphical Presentations (Part B)

III. Exploratory Data Analysis: Stem-and-Leaf Display

The techniques of exploratory data analysis consist of simple arithmetic and easy-todraw pictures that can be used to summarize data quickly.
One such technique is the stem-and-leaf display.
A stem-and-leaf display shows both the rank order and shape of the distribution
of the data.
It is similar to a histogram on its side, but it has the advantage of showing the
actual data.
The first digits of each data item are arranged to the left of a vertical line.
To the right of the vertical line we record the last digit for each item in rank
order.
Each leading digit in the display is referred to as a stem.
Each last digit on a stem is a leaf.
Example: Hudson Auto Repair:
The manager of Hudson Auto would like to gain a better understanding of the
cost of parts used in the engine tune-ups performed in the shop. She examines
50 customer invoices for tune-ups. The costs of parts, rounded to the nearest
dollar, are listed below.

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Stretched Stem-and-Leaf Display


If we believe the original stem-and-leaf display has condensed the data too
much, we can stretch the display vertically by using two stems for each
leading digit(s).
Whenever a stem value is stated twice, the first value corresponds to leaf
values of 0 - 4, and the second value corresponds to leaf values of 5 - 9.

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Stem-and-Leaf Display Leaf Units:


A single digit is used to define each leaf.
In the Hudson Auto Repair example the leaf unit was 1.
Leaf units may be 100, 10, 1, 0.1, and so on.
Where the leaf unit is not shown, it is assumed to equal 1.
The leaf unit indicates how to multiply the stem- and-leaf numbers in order
to approximate the original data.

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IV. Crosstabulation and Scatter Diagram

Thus far we have focused on methods that are used to summarize the data for one
variable at a time.
Often a manager is interested in tabular and graphical methods that will help
understand the relationship between two variables.
Crosstabulation and a scatter diagram are two methods for summarizing the data
for two variables simultaneously.
Crosstabulation:
A Crosstabulation is a tabular summary of data for two variables.
Crosstabulation can be used when:
o one variable is categorical and the other is quantitative,
o both variables are categorical, or
o both variables are quantitative.
The left and top margin labels define the classes for the two variables.
Reference: Using Excels PivotTable Report to Create a Crosstabulation (p.69)

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Converting the entries in the table into row percentages or column percentages
can provide additional insight about the relationship between the two variables.

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Cross Tabulation: Simpsons Paradox:


Data in two or more Crosstabulations are often aggregated to produce a
summary crosstabulation.
We must be careful in drawing conclusions about the relationship between
the two variables in the aggregated crosstabulation.
In some cases the conclusions based upon an aggregated crosstabulation
can be completely reversed if we look at the unaggregated data.
The reversal of conclusions based on aggregate and unaggregated data is
called Simpsons paradox.
Scatter Diagram and Trendline:
A scatter diagram is a graphical presentation of the relationship between
two quantitative variables.
One variable is shown on the horizontal axis and the other variable is shown
on the vertical axis.
The general pattern of the plotted points suggests the overall relationship
between the variables.
A trendline provides an approximation of the relationship.

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Example: Panthers Football Team:


o Insights Gained from the Preceding Scatter Diagram
The scatter diagram indicates a positive relationship between the number of
interceptions and the number of points scored.
Higher points scored are associated with a higher number of interceptions.
The relationship is not perfect; all plotted points in the scatter diagram are
not on a straight line.
Reference: Using Excels Chart Tools to Construct a Scatter Diagram and a Trendline (p.75)

Page | 21

Summary of Chapter 2: Descriptive Statistics: Tabular and Graphical Presentations

Page | 22

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