Business Statistics -I

Chapter Two
Collection and presentation of data
Structure
2.1 Collection of data
2.1.1 Data
2.1.2 Necessity of data collection
2.1.3 Types of data
2.1.4 Methods of primary data collection:
2.1.5 Sources of secondary data
2.1.6 Distinctions between primary data and secondary data
2.1.7 Questionnaire
2.2 Presentation of data
2.2.1 Variable
2.2.2 Classification of data
2.2.3 Types of classification
2.2.4 Objects or importance of Classification
2.2.5 Table and tabulation
2.2.6 Type of Tables
2.2.7 Parts of a table
2.2.8 Importance of tabulation
2.2.9 Distinctions between classification and tabulation
2.2.10 Frequency
2.2.11 Frequency distribution
2.2.12 Types of frequency distribution
2.2.13 Some important definitions
2.2.14 Preparation of frequency table
2.2.15 Characteristics of frequency distribution
2.2.16 Different graphs for representing a frequency distribution
2.2.17 Diagrams
2.2.18 Types of diagrams
2.2.19 Role and limitations of diagrams and graphs
2.2.20 Distinctions
2.3 Solved Problems

2.1 Collection of data

2.1.1 Data
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Data is a plural word of datum. In the view of Layman, data means information. In statistics
the data means mass of information collected from different sources.

2.1.2 Necessity of data collection

The collection of data is an important task in a statistical enquiry. It requires the clear
statement of the problem indicating the type of information which is needed and the use
to which it is needed. If for example, the researcher is interested in knowing the nature of
price change over a period of time, it would be necessary to collect data of commodity
prices and it must be decided whether it would be helpful to study wholesale or retail
prices and the possible uses to which such information could be put.

The objective of an enquiry may be either to collect specific information relating to a

problem or adequate data to test a hypothesis. Failure to set out clearly the purpose of
enquiry is bound to lead to confusion and waste of resources.

2.1.3Types of data
In statistics, data are classified into two broad categories: quantitative data and qualitative
data. This classification is based on the kind of characteristics that are measured.

1. Quantitative data: Quantitative data are those that can be quantified in definite
units of measurement. These refer to characteristics whose successive
measurements yield quantifiable observations. Depending on the nature of the
variable observed for measurement, quantitative data can be further categorized
as continuous and discrete data.

(i) Continuous data: Continuous data represent the numerical values of a

continuous variable. A continuous variable is the one that can assume any value
between any two points on a line segment, thus representing an interval of values.
All characteristics such as weight, length, height, thickness, velocity, temperature,
tensile strength, etc., represent continuous variables.

(ii) Discrete data: Discrete data are the values assumed by a discrete variable.
A discrete variable is the one whose outcomes are measured in fixed
numbers. Such data are essentially count data. These are derived from a
process of counting, such as the number of items possessing or not
possessing a certain characteristic.

2. Qualitative data: Qualitative data refer to qualitative characteristics of a subject or

an object. A characteristic is qualitative in nature when its observations are defined
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and noted in terms of the presence or absence of a certain attribute in discrete

numbers. These data are further classified as nominal and rank data.

(i) Nominal data: Nominal data are the outcome of classification into two or
more categories of items or units comprising a sample or a population
according to some quality characteristic. Classification of students
according to sex (as males and females), of workers according to skill (as
skilled, semi-skilled, and unskilled), and of employees according to the level
of education (as matriculates, undergraduates, and post-graduates), all
result into nominal data.

(ii) Rank data: Rank data, on the other hand, are the result of assigning ranks
to specify order in terms of the integers 1, 2, 3... n. Ranks may be assigned
according to the level of performance in a test. a contest, a competition, an
interview, or a show. The candidates appearing in an interview, for example,
may be assigned ranks in integers ranging from I to n, depending on their
performance in the interview.

Again, Any statistical data can be classified under two categories depending upon the
sources utilized. These categories are,

1. Primary data
2. Secondary data

1. Primary data: Primary data is the one, which is collected by the investigator
himself for the purpose of a specific inquiry or study. Such data is original in
character and is generated by survey conducted by individuals or research
institution or any organization.

Example: If a researcher is interested to know the impact of noon meal scheme for
the school children, he has to undertake a survey and collect data on the opinion of
parents and children by asking relevant questions. Such a data collected for the
purpose is called primary data.

2. Secondary Data: Secondary data are those data which have been already
collected and analyzed by some earlier agency for its own use; and later the same
data are used by a different agency. According to W.A. Neiswanger, ‘ A primary
source is a publication in which the data are published by the same authority
which gathered and analyzed them. A secondary source is a publication, reporting
the data which have been gathered by other authorities and for which others are
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responsible’.

2.1.4 Methods of primary data collection:

The data which is collected in the process of investigation are called primary data. For
the collection of primary data the investigator may choose any one of the following
methods.

i) Direct personal observation.

ii) Indirect oral interviews.
iii) Mailed questionnaire method.
iv) Schedules sent through enumerators.

i) Direct personal observations: In this method the person who collects data
visits the field of survey and collects the information through discussions with
the persons who are either directly or indirectly in touch with the facts under
study. Some times through personal observations by investigator can get
information. In this method of collecting data the investigator should be very
much careful for his public behavior and he should mix with the people of that
locality where he is collecting data.

Merits:
1) Original data are collected.
2) True and reliable data are collected.
3) Response will be encouraging because of personal approach.

Demerits:
1) It is not suitable where the area under survey is very large.
2) It is expensive and time consuming.
3) Untrained investigators will not bring good results.

ii) Indirect oral interviews: Under this method of collecting data the investigator
contacts the third person who is capable of supplying the necessary
information. This method is generally adopted in those cases where the
informants are not interested to respond if investigator approaches directly. For
example if we want to interview a drug addict, he may be interested to supply
information about his own habits. In this case we get the necessary information
from those persons who know him well.

Merits:
1) It is simple and convenient.
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2) It saves time, money and labor.

3) It can be used in the investigation of a large area.

Demerits:
1) Interview with an improper person will spoil the results.
2) In order to get the real position, a sufficient number of persons are to be
interviewed.

iii) Mailed questionnaire method: Under this method a questionnaire (list of

objective type of questions) are sent to the informants by post. The
questionnaire should be attractive and questions are arranged in such a way
that it will take minimum time to answer. The questionnaire should contain a
request note and guidelines that how to appear the questions. The
questionnaire should be in expensive and should contain a self addressed
covering letter to send it back within specified time.

Merits:
1) Of all the methods this method is most economical.
2) This method is suitable when the area of investigation is very large.
3) It saves time, money and labor.

Demerits:
1) In this method there is no direct contact between the investigator and the
informant, therefore we can be sure about the accuracy of the data.
2) This method is only suitable when the informants are literate.
3) There is a chance of delay in receiving of answers from the informants.

iv) Schedules sent through investigators: It is the most widely used method of
collecting primary data. In this method a number of enumerators are selected
and trained. They are provided with a standardized questionnaire and specific
training and instructions are given to them for filling up the schedules. Each
enumerator will be the in charge of a certain area. The investigator goes to the
informants along with the questionnaire and gets replies to the questions in the
schedules and records their answers. They explain the object and purpose of
the enquiry.

Merits:
1) This method is very much useful where the informants are illiterates.
2) In this method because of direct contact between the investigators and the
Informants, the investigator can get accurate information.
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Demerits:
1) This method is more expensive and time consuming.
2) The success of this method is depends upon the trained, intelligent and
qualified investigators.
2.1.5 Sources of secondary data
The various sources of secondary data can be divided into two categories
1) Published sources
2) Unpublished sources.

1) Published sources: The various sources of published data are:

a) Reports and official publications of

i. International bodies such as the International Monetary Fund, International

Finance Corporation and United Nations Organization.
ii. Central and State Governments such as the Report of the Budgetary
Committee and Pay Commission.

b) Semi-official publication of various local bodies such as Municipal Corporations

and District Boards.

c) Private publications-such as the publications of –

i. Trade and professional bodies such as the Federation of Indian Chambers

of Commerce and Institute of Chartered Accountants.
ii. Financial and economic journals such as ‘Commerce’, ‘Capital’ and ‘Indian
Finance’.
iii. Annual reports of joint stock companies.
iv. Publications brought out by research agencies, research scholars, etc.

2) Unpublished sources: All statistical material is not always published. There are
various sources of unpublished data such as records maintained by various
Government and private offices, studies made by research institutions, scholars,
etc. Such sources can also be used where necessary.

2.1.6 Distinctions between primary data and secondary data

Some distinctions between primary data and secondary data are given below:
Primary data Secondary data
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1. Primary data are those data 1. Secondary data are those data
which are collected from the which are collected from the
primary sources. secondary sources.
2. Primary data are known as basic 2. Secondary data are known as
data. subsidiary data.
3. The collection of primary data is 3. The collection of secondary data is
more expensive. comparatively less expensive.
4. It takes more time to collect the 4. It takes less time to collect the data.
data. 5. Secondary data are less accurate
5. Primary data are more accurate. than the primary data.
6. Primary data are known as first 6. Secondary data are known as
hand data. second hand data.
7. Primary data are not readily 7. Subsidiary data are readily
available. available.
8. It is required to take much care 8. It is not required to take much care
at the time of collecting data. at the time of collecting data.

2.1.7 Questionnaire
Questionnaire refers to a device for securing answers to questions by using a form which
the respondent fills in himself.

Main characteristics of a questionnaire preparation

1. The person conducting the survey (questionnaire) must introduce himself and state
the objective of the survey.
2. The number of questions should be as few as possible.
3. The questions must be arranged in a logical order.
4. The questions should be short, simple and easy to understand.
5. Questions of a sensitive nature should be avoided.
6. The questionnaire should provide necessary instructions to the informants.
7. If a particular questions needs clarification, it should be marked or lettered and the
explanation provided in footnotes.
8. Questions should be capable of objective answers.
9. Answer to questions should not require calculation.
10. The questionnaire should be pre-tested with a group before mailing it out.
11. If possible, one or more cross-checks should be incorporated into the
questionnaire to determine whether the respondent is answering the questions
carefully.
12. Some incentive for filling up the questionnaire should be provided.
13. The method to be used for tabulating the results should be determined before the
final draft of the questionnaire is made.
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2.2 Presentation of data

2.2.1 Variable
The meaning of the word variable is ‘which varies’. The term, ‘variable’ refers to the
characteristic that varies in amount or magnitude.

Variables are classified into two broad categories: quantitative variables and qualitative
variables.

1) Quantitative variables: These refer to characteristics whose successive

measurements yield quantifiable observations. That is, quantitative variables take
only numerical values. Quantitative variable can be further categorized as
continuous and discrete variable.
i. Continuous variable: A continuous variable is the one that can assume any
value between any two points on a line segment, thus representing an
interval of values. All characteristics such as weight, length, height, thickness,
velocity, temperature, tensile strength, etc., represent continuous variables.

ii. Discrete variable: A discrete variable is the one whose outcomes are
measured in fixed numbers. Such data are essentially count data. These are
derived from a process of counting, such as the number of items possessing
or not possessing a certain characteristic.

2) Qualitative variables: A characteristic is qualitative in nature when its observations

are defined and noted in terms of the presence or absence of a certain attribute in
discrete numbers. This characteristic is known as qualitative variable.

2.2.2 Classification of data

The collected data, also known as raw data or ungrouped data are always in an
unorganized form and need to be organized and presented in meaningful and readily
comprehensible form in order to facilitate further statistical analysis. The process of
grouping into different classes or sub classes according to some characteristics is known
as classification.

2.2.3 Types of classification

Statistical data are classified in respect of their characteristics. Broadly there are four
basic types of classification namely
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a) Chronological classification
b) Geographical classification
c) Qualitative classification
d) Quantitative classification

a) Chronological classification: In chronological classification the collected data are

arranged according to the order of time expressed in years, months, weeks, etc. The data
is generally classified in ascending order of time. For example, the data related with
population, sales of a firm, imports and exports of a country are always subjected to
chronological classification.
Example: The estimates of birth rates in Bangladesh during 1970 - 76 are

Year 1970 1971 1972 1973 1974 1975 1976

Birth
36.8 36.9 36.6 34.6 34.5 35.2 34.2
rate

b) Geographical classification: In this type of classification the data are classified

according to geographical region or place. For instance, the production of paddy in
different districts in Bangladesh, production of wheat in different countries etc.,

Example:
Country America China Denmark France Canada
Yield of wheat 1900 1500 850 1230 1170
in (kg/acre)

c) Qualitative classification: In this type of classification data are classified on the

basis of same attributes or quality like sex, literacy, religion, employment etc. Such
attributes cannot be measured along with a scale.

For example, if the population to be classified in respect to one attribute, say sex, then
we can classify them into two namely that of males and females. Similarly, they can also
be classified into ‘employed’ or ‘unemployed’ on the basis of another attribute
‘employment’.

If we classify population simultaneously with respect to two attributes, e.g. sex and
employment, then population are first classified with respect to ‘sex’ into ‘males’ and
‘females’. Each of these classes may then be further classified into ‘employment’ and
‘unemployment’ on the basis of attribute ‘employment’ and as such Population are
classified into four classes namely.
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d) Quantitative classification: Quantitative classification refers to the classification of

data according to some characteristics that can be measured such as height, weight, etc.
For example the students of a college may be classified according to weight as given
below.

Weight 100-110 110-120 120-130 130-140 140-150 150-160

(in lb)
No. of 50 200 260 360 90 40
Students

2.2.4 Objects or importance of Classification

The following are main objectives of classifying the data:

1. It condenses the mass of data in an easily measurable form.

2. It eliminates unnecessary details.
3. It facilitates comparison and highlights the significant aspect of data.
4. It enables one to get a mental picture of the information and helps in drawing
inferences.
5. It helps in the statistical treatment of the information collected.

2.2.5 Table and tabulation

Tabulation is the process of summarizing classified or grouped data in the form of a table
so that it is easily understood and an investigator is quickly able to locate the desired
information.

A table is a systematic arrangement of classified data in columns and rows. Thus, a

statistical table makes it possible for the investigator to present a huge mass of data in a
detailed and orderly form. It facilitates comparison and often reveals certain patterns in
data which are otherwise not obvious.

2.2.6 Type of Tables

Tables may be broadly classified into two categories.

1) Simple and complex tables

2) General purpose and special purpose (or) summery tables.

1) Simple and complex tables: The distinction between simple and complex table is
based on the number of characteristics studied.

In a simple table only one character is shown. Hence this type of table is also known
as one-way table. On the other hand in a complex table two or more characteristics
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are shown. When two characteristics are shown such a table is known as two-way
table or double tabulation.

Example of one way table:

Number of employees in state bank according to age group
Age (in years) No. of employees
Below 25 3
25-35 2
35-45 2
Above 45 3

Example of two-way
table:

Number of employees of state bank in different age groups according to sex

Age(in years) Employees Total
When three
Males Females
or more
Below 25 3 2 5
25-35 4 5 9
35-45 5 6 11
Above 45 2 3 5
Total 14 16 30
characteristics are represented in the same table is called three-way tabulation. As the
number of characteristics increases, the tabulation becomes so complicated and
confusing.

2) General and special purpose tables: General purpose tables sometimes termed as
reference tables or information tables. These tables provide information for general
use of reference. They usually contain detailed information and are not constructed
for specific discussion. These tables are also termed as master tables.

Special purpose tables also known as summery tables which provide information for
particular discussion. These tables are constructed or derived from the general
purpose tables. These tables are useful for analytical and comparative studies
involving the study of relationship among variables.

2.2.7 Parts of a table

An ideal table should consist of the following main parts:

1. Table number
2. Title of the table
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3. Captions or column headings

4. Stubs or row designation
5. Body of the table
6. Footnotes
7. Sources of data
Table Number: A table should be numbered for easy reference and identification. This
number, if possible, should be written in the centre at the top of the table. Sometimes it is
also written just before the title of the table.

Title: A good table should have a clearly worded, brief but unambiguous title explaining
the nature of data contained in the table. It should also state arrangement of data and the
period covered. The title should be placed centrally on the top of a table just below the
table number (or just after table number in the same line).

Captions or column Headings: Captions in a table stands for brief and self explanatory
headings of vertical columns. Captions may involve headings and sub-headings as well.
The unit of data contained should also be given for each column. Usually, a relatively less
important and shorter classification should be tabulated in the columns.

Stubs or Row Designations: Stubs stands for brief and self explanatory headings of
horizontal rows. Normally, a relatively more important classification is given in rows. Also
a variable with a large number of classes is usually represented in rows. For example,
rows may stand for score of classes and columns for data related to sex of students. In
the process, there will be many rows for scores classes but only two columns for male
and female students.

Body: The body of the table contains the numerical information of frequency of
observations in the different cells. This arrangement of data is according to the description
of captions and stubs.

Footnotes: Footnotes are given at the foot of the table for explanation of any fact or
information included in the table which needs some explanation. Thus, they are meant
for explaining or providing further details about the data that have not been covered in
title, captions and stubs.

Sources of data: Lastly one should also mention the source of information from which
data are taken. This may preferably include the name of the author, volume, page and
the year of publication. This should also state whether the data contained in the table is
of ‘primary or secondary’ nature.
2.2.8 Importance of tabulation
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Statistical data arranged in a tabular form serve following objectives:

1. It simplifies complex data and the data presented are easily understood.
2. It facilitates comparison of related facts.
3. It facilitates computation of various statistical measures like averages, dispersion,
correlation etc.
4. It presents facts in minimum possible space and unnecessary repetitions and
explanations are avoided. Moreover, the needed information can be easily located.
5. Tabulated data are good for references and they make it easier to present the
information in the form of graphs and diagrams.

2.2.9 Distinctions between classification and tabulation

The differences between classification and tabulation are given below:

Classification Tabulation
1. In classification, the data are 1. Tabulation is a process of arranging
divided into various groups and the classified data In row and columns
subgroups on the basis their with suitable heads and sub-heads.
similarities and dissimilarities.
2. The data are classified at first and
2. Classification is the basis for then tabulated.
tabulation.
3. Tabulation is a process of
3. Classification of data is a process presentation.
of statistical analysis.

2.2.10 Frequency
The number of repetition of a particular value of a variable is called frequency of that
value. For example, consider the ages of 7 students of a class are 19, 20, 19, 21, 20, 19,
21 years respectively. Here, the value 19 is repeated thrice, 20 is repeated twice and 21
is repeated twice. Hence, the frequencies of 19, 20 and 21 are 3, 2 and 2 respectively.

2.2.11 Frequency distribution

Frequency distribution is a series when a number of observations with similar or closely
related values are put in separate bunches or groups, each group being in order of
magnitude in a series. It is simply a table in which the data are grouped into classes and
the numbers of cases which fall in each class are recorded. It shows the frequency of
occurrence of different values of a single Phenomenon.
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2.2.12 Types of frequency distribution

There are two types of frequency distribution:

1. Discrete frequency distribution

2. Continuous frequency distribution

1. Discrete (or ungrouped) frequency distribution: In this form of distribution, the

frequency refers to discrete value. Here the data are presented in a way that exact
measurements of units are clearly indicated.

There are definite differences between the variables of different groups of items. Each
class is distinct and separate from the other class. Non-continuity from one class to
another class exists. Such as, the number of rooms in a house, the number of companies
registered in a country, the number of children in a family, etc.

The process of preparing this type of distribution is very simple. We have just to count the
number of times a particular value is repeated, which is called the frequency of that class.
In order to facilitate counting prepare a column of tallies.

In another column, place all possible values of variable from the lowest to the highest.
Then put a bar (Vertical line) opposite the particular value to which it relates.

To facilitate counting, blocks of five bars |||| are prepared and some space is left in
between each block. We finally count the number of bars and get frequency.

Example: In a survey of 30 families in a village, the number of children per family was
recorded and the following data obtained.

4 2 0 2 3 2 2 1 0 2
3 5 1 1 4 2 1 3 4 2
5 1 2 2 2 1 3 4 1 0

We can represent the data in the form of a discrete frequency distribution as follows:
Number of children Tally Marks Frequency
0 ||| 3
1 |||| || 7
2 |||| |||| 10
3 |||| 4
4 |||| 4
5 || 2
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Total N = 30

2. Continuous frequency distribution: In this form of distribution refers to groups of

values. This becomes necessary in the case of some variables which can take any
fractional value and in which case an exact measurement is not possible. Hence a discrete
variable can be presented in the form of a continuous frequency distribution.

Example: Wage distribution of 85 employees

Daily wages (in Tk.) No. of Employees

50 – 100 5
100 – 150 10
150 – 200 15
200 – 250 18
250 – 300 17
300 – 350 12
350 – 400 8
Total N = 85
2.2.13 Some important definitions

Class Limit: The class limits are the lowest and the highest values that can be included
in the class. For example, take the class 30 – 40. The lowest value of the class is 30 and
highest class is 40. The two boundaries of class are known as the lower limits and the
upper limit of the class. The lower limit of a class is the value below which there can be
no item in the class. The upper limit of a class is the value above which there can be no
item to that class. In statistical calculations, lower class limit is denoted by L and upper
class limit by U.

Class interval: The difference between the lower and upper class limits is called class
interval and is denoted by ‘c’. That is, c = U – L. For example, take the class 30 – 40. Then,
class interval c = 10.
Class mid-point: The central point of a class is called the class mid value or class mid-point.
It is found out by adding the upper and lower limits of a class and dividing the sum by 2. That
is,

𝐿+𝑈
Class mid-point = 2
20+30
For example, if the class interval is 20-30 then the mid-value is = 25.
2

Class frequency: Number of observations falling within a particular class is called

frequency of that class.
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Let us consider the frequency distribution of wages of persons working in a company.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5
Total 50

In the above example, the class frequencies are 10, 12, 15, 8 and 5. The total
frequency is equal to 50.

Cumulative frequency distribution: Cumulative frequency distribution has a running total

of the values. It is constructed by adding the frequency of the first class to the frequency of
the second class. Again add that total to the frequency in the third class continuing until
the final total appearing opposite to the last class will be the total of all frequencies. The
cumulative frequency may be downward or upward. A downward cumulating results in a
list presenting the number of frequencies “less than” any given amount as revealed by the
lower limit of succeeding class and the upward cumulative results in a list presenting
the number of frequencies “more than” and given amount is revealed by the upper limit of
a preceding class.

Let us consider the frequency distribution of wages of persons working in a company.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5
Total 50

“Less than” cumulative frequency distribution table:

Daily wages (in Tk.) No. of workers

Less than 100 10
Less than 150 22
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Less than 200 37

Less than 250 45
Less than 300 50

“More than” cumulative frequency distribution table:

Daily wages (in Tk.) No. of workers

50 and above 50
100 and above 40
150 and above 28
200 and above 13
250 and above 5

Relative frequency & Percentage frequency: In a frequency distribution, relative

frequency of a class is defined as the ratio of class frequency and total frequency. That is,
class frequency
Relative frequency = total frequency

In a frequency distribution, percentage frequency of a class is defined as the product of

relative frequency and hundred. That is,

Percentage frequency = relative frequency x 100.

The distribution showing the relative frequency and percentage frequency is given below:

Daily wages (in Tk.) No. of workers Relative frequency Percentage frequency
50 – 100 10 10/50 = 0.2 20
100 – 150 12 0.24 24
150 – 200 15 0.3 30
200 – 250 8 0.16 16
250 – 300 5 0.1 10
Total 50 1 100

Frequency density: In a frequency distribution, frequency density of a class is defined as

the ratio of class frequency and class interval. That is,

class frequency
Frequency density = class interval
Example:
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Daily wages (in Tk.) No. of workers Frequency density

50 – 100 10 10/50 = 0.2
100 – 150 12 0.24
150 – 200 15 0.3
200 – 300 13 13/100 = 0.13
300 – 450 20 0.133
Total N = 70

2.2.14 Preparation of frequency table

The premise of data in the form of frequency distribution describes the basic pattern
which the data assumes in the mass. Frequency distribution gives a better picture of the
pattern of data if the number of items is large. If the identity of the individuals about whom
a particular information is taken, is not relevant then the first step of condensation is to
divide the observed range of variable into a suitable number of class-intervals and to
record the number of observations in each class.

Example: Given below are the marks obtained by 30 students in a class test

32 33 55 47 21 50 27 26 24 33
62 42 38 15 45 32 44 48 68 49
40 52 30 17 44 58 37 48 39 42
Construct a frequency distribution table using suitable class interval.

Solution: Given that,

Number of students, N = 30
Highest value, H = 68
Lowest value, L = 15
∴ Range, R = H – L
= 68 – 15
= 53
𝑅𝑎𝑛𝑔𝑒
Possible class interval, i =
1+3.322 log 𝑁
53
=
1+3.322 log 30
= 8.97

We will take 10 as the class-interval and the first class as 15 – 25.

Table: Construction of a continuous frequency distribution using exclusive method.

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Class Tally marks Frequency

15 – 25 |||| 4
25 – 35 |||| || 7
35 – 45 |||| ||| 8
45 – 55 |||| || 7
55 – 65 ||| 3
65 – 75 | 1
Total N = 30

2.2.15 Characteristics of frequency distribution

Constructing a frequency distribution depends on the nature of the given data. Hence, the
following general consideration may be borne in mind for ensuring meaningful classification
of data.

1. The number of classes should preferably be between 5 and 15. However there
is no rigidity about it.
2. As far as possible one should avoid values of class intervals as
3,7,11,26….etc.preferably one should have class-intervals of either five or
multiples of 5 like 10,20,25,100 etc.
3. The starting point i.e the lower limit of the first class should either be zero or 5
or multiple of 5.
4. To ensure continuity and to get correct class interval we should adopt
“exclusive” method.
5. Wherever possible, it is desirable to use class interval of equal sizes.

2.2.16 Different graphs for representing a frequency distribution

Graphs: A graph is a visual form of presentation of statistical data. A graph is more

attractive than a table of figure.

However here we shall discuss only some important types of graphs which are more
popular and they are
1. Histogram
2. Frequency Polygon
3. Frequency Curve
4. Ogive

1. Histogram: A histogram is a bar chart or graph showing the frequency of occurrence

of each value of the variable being analyzed. In histogram, data are plotted as a series
of rectangles. Class-intervals are shown on the ‘X-axis’ and the frequencies on the ‘Y-
Business Statistics -I

axis’.

The height of each rectangle represents the frequency of the class interval. Each rectangle
is formed with the other so as to give a continuous picture. Such a graph is also called
staircase or block diagram.

However, we cannot construct a histogram for distribution with open-end classes. It is also
quite misleading if the distribution has unequal intervals and suitable adjustments in
frequencies are not made.

Example: Consider the following data.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5

We can draw a histogram for the given data as follows:

20

15

10

O 50 100 150 200 250 300

Class Limit 
Figure: Histogram

2. Frequency Polygon: If we mark the midpoints of the top horizontal sides of the
rectangles in a histogram and join them by a straight line, the figure so formed is called a
Business Statistics -I

Frequency Polygon. This is done under the assumption that the frequencies in a class
interval are evenly distributed throughout the class. The area of the polygon is equal to
the area of the histogram, because the area left outside is just equal to the area included
in it.

Example: Draw a frequency polygon for the following data.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5

Solution: The given data are as follows:

Daily wages (in Tk.) Class mid-point No. of workers
50 – 100 75 10
100 – 150 125 12
150 – 200 175 15
200 – 250 225 8
250 – 300 275 5

20

15

10

O 50 100 150 200 250 300

Class Limit 
Figure: Frequency Polygon

3. Frequency Curve: If the middle point of the upper boundaries of the rectangles of a
Business Statistics -I

histogram is corrected by a smooth freehand curve, then that diagram is called frequency
curve. The curve should begin and end at the base line.

Example: Draw a frequency curve for the following data.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5

Solution: The given data are as follows:

Daily wages (in Tk.) Class mid-point No. of workers
50 – 100 75 10
100 – 150 125 12
150 – 200 175 15
200 – 250 225 8
250 – 300 275 5

20

15

10

O 50 100 150 200 250 300

Class Limit 

Figure: Frequency Curve

4. Ogive: For a set of observations, we know how to construct a frequency

distribution. In some cases we may require the number of observations less than a given
value or more than a given value. This is obtained by an accumulating (adding) the
Business Statistics -I

frequencies up to (or above) the give value. This accumulated frequency is called
cumulative frequency.

These cumulative frequencies are then listed in a table is called cumulative frequency
table. The curve obtained by plotting cumulative frequencies is called a cumulative
frequency curve or an ogive.

There are two methods of constructing ogive namely:

1. The ‘less than ogive’ method
2. The ‘more than ogive’ method.
In less than ogive method we start with the upper limits of the classes and go adding the
frequencies. When these frequencies are plotted, we get a rising curve. In more than
ogive method, we start with the lower limits of the classes and from the total frequencies
we subtract the frequency of each class. When these frequencies are plotted we get a
declining curve.

Example: Let us consider the frequency distribution of wages of persons working in a

company.

Daily wages (in Tk.) No. of workers

50 – 100 10
100 – 150 12
150 – 200 15
200 – 250 8
250 – 300 5
Total 50

“Less than” cumulative frequency distribution table:

Daily wages (in Tk.) No. of workers

Less than 100 10
Less than 150 22
Less than 200 37
Less than 250 45
Less than 300 50

“More than” cumulative frequency distribution table:

Daily wages (in Tk.) No. of workers

50 and above 50
Business Statistics -I

100 and above 40

150 and above 28
200 and above 13
250 and above 5

50

40

30

20

10

O 50 100 150 200 250 300

Class Limit 
Figure: Ogive Curves

2.2.17 Diagrams
A diagram is a visual form for presentation of statistical data, highlighting their basic facts
and relationship. If we draw diagrams on the basis of the data collected they will easily
be understood and appreciated by all. It is readily intelligible and save a considerable
amount of time and energy.

General rules for constructing diagrams

The construction of diagrams is an art, which can be acquired through practice. However,
observance of some general guidelines can help in making them more attractive and
effective. The diagrammatic presentation of statistical facts will be advantageous provided
the following rules are observed in drawing diagrams.

1. A diagram should be neatly drawn and attractive.

2. The measurements of geometrical figures used in diagram should be accurate
and proportional.
3. The size of the diagrams should match the size of the paper.
4. Every diagram must have a suitable but short heading.
5. The scale should be mentioned in the diagram.
6. Diagrams should be neatly as well as accurately drawn with the help of drawing
instruments.
Business Statistics -I

7. Index must be given for identification so that the reader can easily make out the
meaning of the diagram.
8. Footnote must be given at the bottom of the diagram.
9. Economy in cost and energy should be exercised in drawing diagram.

2.2.18 Types of diagrams

In practice, a very large variety of diagrams are in use and new ones are constantly being
added. For the sake of convenience and simplicity, they may be divided under the
following heads:
1. One-dimensional diagrams
2. Two-dimensional diagrams
3. Three-dimensional diagrams
4. Pictograms and Cartograms

One dimensional and two dimensional diagrams are discussed below:

One-dimensional diagrams
In such diagrams, only one-dimensional measurement, i.e height is used and the width is
not considered. These diagrams are in the form of bar or line charts and can be classified
as
1. Line Diagram
2. Simple bar Diagram
3. Multiple bar Diagram
4. Sub-divided bar Diagram

1. Line Diagram
Line diagram is used in case where there are many items to be shown and there
is not much of difference in their values. Such diagram is prepared by drawing a
vertical line for each item according to the scale. The distance between lines is
kept uniform. Line diagram makes comparison easy, but it is less attractive.

Example: Represent the following data by a suitable diagram:

Variable 1 2 3 4 5 6
Frequency 50 80 30 12 3 1

Solution: Given that,

Variable 1 2 3 4 5 6
Frequency 50 80 30 12 3 1

Since the given distribution is a discrete frequency distribution, we can represent it

Business Statistics -I

by the following line diagram.

80 °

60
°
40
°
20
°
10 °°
°
0 1 2 3 4 5 6
Variable

2. Simple Bar Diagram

Simple bar diagram can be drawn either on horizontal or vertical base, but bars on
horizontal base more common. Bars must be uniform width and intervening space
between bars must be equal. While constructing a simple bar diagram, the scale
is determined on the basis of the highest value in the series. To make the diagram
attractive, the bars can be colored. Bar diagram are used in business and
economics. However, an important limitation of such diagrams is that they can
present only one classification or one category of data. For example, while
presenting the population for the last five decades, one can only depict the total
population in the simple bar diagrams, and not its sex-wise distribution.

Example: Represent the following data by a bar diagram.

Year 1995 1996 1997 1998 1999 2000
Profit (in thousands Tk.) 2 6 11 15 20 27

Solution:
Business Statistics -I

Profit
30

25

20

15
Profit

10

0
1995 1996 1997 1998 1999 2000

Figure: Simple bar diagram

3. Multiple Bar Diagram

Multiple bar diagram is used for comparing two or more sets of statistical data.
Bars are constructed side by side to represent the set of values for comparison. In
order to distinguish bars, they may be either differently colored or there should be
different types of crossings or dots, etc. An index is also prepared to identify the
meaning of different colors or dots.

Example: Represent the following data by a suitable diagram:

Expenditure items Family A Family B

Food 3000 4000
Clothing 2500 2000
Education 500 600
Others 3800 3000
Savings +200 - 300

Solution: Since the multiple bar diagram is used for comparing two or more sets
of statistical data, we can represent the given data by the following multiple bar
diagram.
Business Statistics -I

4500
4000
3500
3000
2500
2000
Family A
1500
Family B
1000
500
0
-500 Food Clothings Education Others Savings

-1000

Figure: Multiple bar diagram

4. Sub-divided Bar Diagram

In a sub-divided bar diagram, the bar is sub-divided into various parts in proportion
to the values given in the data and the whole bar represent the total. Such
diagrams are also called Component Bar diagrams. The sub divisions are
distinguished by different colors or crossings or dots. The main defect of such a
diagram is that all the parts do not have a common base to enable one to compare
accurately the various components of the data.

Example: Represent the following data by a sub-divided bar diagram.

Expenditure Monthly expenditure (in Tk.)
items Family A Family B
Food 75 95
Clothing 20 25
Education 15 10
House Rent 40 65
Others 25 35

Solution:
Expenditure Monthly expenditure (in Tk.) Total expenditure
items Family A Family B (in Tk.)
Business Statistics -I

Food 75 95 170
Clothing 20 25 45
Education 15 10 25
House Rent 40 65 105
Others 25 35 60

The sub-divided bar diagram of the above data is given below:

180
160
140
120
100
Family B
80
Family A
60
40
20
0
Food Clothing Education House Rent Others

Figure: Sub-divided bar diagram

Two-dimensional Diagrams

In one-dimensional diagrams, only length 9 is taken into account. But in two-dimensional

diagrams, the area represents the data and so the length and breadth have both to be
taken into account. Such diagrams are also called area diagrams or surface diagrams.
The important types of area diagrams are:

1. Rectangles
2. Squares
3. Pie-diagrams
1. Rectangles
Rectangles are used to represent the relative magnitude of two or more values.
The areas of the rectangles are kept in proportion to the values. Rectangles are
placed side by side for comparison. When two sets of figures are to be represented
by rectangles, either of the two methods may be adopted. We may represent the
figures as they are given or may convert them to percentages and then subdivide
the length into various components. Thus the percentage sub-divided rectangular
Business Statistics -I

diagram is more popular than sub-divided rectangular since it enables comparison

to be made on a percentage basis.

2. Squares
The rectangular method of diagrammatic presentation is difficult to use where the
values of items vary widely. The method of drawing a square diagram is very
simple. One has to take the square root of the values of various item that are to be
shown in the diagrams and then select a suitable scale to draw the squares.

3. Pie Diagram or Circular Diagram

Another way of preparing a two-dimensional diagram is in the form of circles. In
such diagrams, both the total and the component parts or sectors can be shown.
The area of a circle is proportional to the square of its radius. While making
comparisons, pie diagrams should be used on a percentage basis and not on an
absolute basis.

In constructing a pie diagram the first step is to prepare the data so that various
components values can be transposed into corresponding degrees on the circle.

The second step is to draw a circle of appropriate size with a compass. The size
of the radius depends upon the available space and other factors of presentation.
The third step is to measure points on the circle and representing the size of each
sector with the help of a protractor.

Example: See problem-9

2.2.19 Role and limitations of diagrams and graphs

Some important role and limitations of diagrams and graphs are given below:

Role of diagrams and graphs in presenting business data:

One of the most convincing and appealing ways in which data may be presented is
through diagram and graphs.
1. Diagrammatic and graphic presentation helps in quick understanding of the data.
2. As the number and magnitude of figures increases, they become more confusing
and their analysis tends to be more strenuous.
3. Through diagrammatic and graphic presentation, data can be presented in an
interesting form.
4. Diagram and graphs have greater memorizing effect as the impressions created by
them last much longer than those created by the figures.

Limitations of diagrams and graphs in presenting business data:

Business Statistics -I

1. They can present only approximate values.

2. They can appropriately represent only limited amount of information.
3. They intended mostly to explain quantitative facts to the general public. From the
point of view of the statistician, they are not of much help in analyzing data.
4. They can be easily misinterpreted and, therefore, can be used for grinding one’s
own axe during advertisement, propaganda and electioneering. As such diagrams
should never be accepted without a close inspection of the bona fides. Things are
very often not what they appear to be.
5. The two-dimensional diagrams and three-dimensional diagrams cannot be
accurately appraised visually and therefore, as far as possible their use should be
avoided.

2.2.20 Distinctions between

(i) Discrete and continuous frequency distribution
(ii) Inclusive and exclusive method
(iii) Diagram and graph
(iv) Histogram and bar diagram
(v) Histogram and frequency polygon

(i) Differences between discrete and continuous frequency distribution

Differences between discrete and continuous frequency distribution are given below:
Discrete frequency distribution Continuous frequency distribution
1. In this distribution, the frequency 1. In this distribution, the frequency
refers to discrete value. refers to continuous value.

2. It has no class interval. 2. It has at class interval.

3. In this distribution, the frequency 3. In this distribution, the frequency

shows how many times a particular shows how many observation(s) of a
observation of a variable is repeated. variable is present in each class.

4. It is limitedly used. 4. It is widely used.

5. It is not good for analysis. 5. It is good for analysis.

(ii) Differences between inclusive and exclusive method

Differences between inclusive and exclusive method are given below:
Inclusive method Exclusive method
1. When the class-interval are so 1. When the class-interval are so
fixed that the upper limit of one class fixed that the upper limit of one class
Business Statistics -I

is not the lower limit of the next class, is the lower limit of the next class, it
it is known as the inclusive method is known as the exclusive method of
of classification. classification.

2. The inclusive method cannot 2. The exclusive method ensures

ensure continuity of data. continuity of data.

3. Under the inclusive method of 3. Under the exclusive method of

classification, the upper limit of one classification, the upper limit of one
class is included in that class itself. class is not included in that class
itself.
4. It is necessary to make an
adjustment to determine the correct 4. It is not necessary to make an
class interval and to have continuity adjustment to determine the correct
of data. class interval.

5. Under the inclusive method of 5. Under the exclusive method of

classification, class limits may be classification, class limits may be
given as follows: given as follows:

Lower limit Upper limit Lower limit Upper limit

10 19 10 20

20 29 20 30

30 39 30 40

(iii) Differences between diagram and graph

Differences between diagram and graph are given below:

Diagrams Graphs
1. Diagrams are generally 1. In the construction of a graph,
constructed on a plain paper. graph paper is used.

2. A diagram is used for sake of 2. A graph helps to study the

comparison but not for studying the mathematical relation between two
relation between two variables. variables such as price and demand;
income and consumption, time and
population etc.
Business Statistics -I

3. Diagrams furnish only 3. Graphs are more precise and

approximate information on the accurate than diagrams.
problem under study.
4. They are more helpful to a
4. These are not much use to a researcher for studying the
researcher for further analysis. relationship between two variables
and for further statistical analysis and
interpretation.

5. Median and mode cannot be 5. Median and mode can be

estimated from diagrammatic estimated from graphical
representation. representation.

6. Diagrams are useful in presenting 6. Graphs are used to present time

geographical or spatial series. series data and frequency
distributions.

(iv) Differences between histogram and bar diagram

Differences between histogram and bar diagram are given below:

Histogram Bar diagram
1. Histograms are usually used to 1. Bar diagrams are usually used to
present "continuous data". display "categorical data".

2. In histograms the bars are 2. The bars in bar diagrams are

adjacent to each other. usually separated.

3. Histograms are never drawn with 3. Sometimes, bar diagrams are

spaces between the bars. drawn with no spaces between the
bars.
4. Histogram is a one kind of graph.
4. Bar diagram is a one kind of
diagram.

5. Histogram is a two way graph. 5. Bar diagram is a one way chart.

(v) Differences between histogram and frequency polygon

Business Statistics -I

Differences between histogram and frequency polygon are given below:

Histogram Frequency polygon
1. Histograms are usually used to 1. Frequency polygons are usually
present continuous frequency used to present discrete and
distribution. continuous frequency distribution.

2. To draw a histogram, the x-axis 2. To draw a frequency polygon, the

represents the class intervals and x-axis represents the class mid-
the y-axis represents class points and the y-axis represents
frequencies. class frequencies.

3. Mode can be determined from 3. The exact value of mode cannot be

histogram. determined from frequency polygon.

4. The frequency polygon is a special

line graph used in statistics.
4. Histogram is like a bar diagram
without the spaces between bars. 5. It is difficult to understand.

5. It is easy to understand. 6. It is limitedly used.

6. It is widely used.

2.3 Solved Problems

Problem-1: Given below are the marks obtained by 30 students in a class test
32 33 55 47 21 50 27 26 24 33 Construct a
62 42 38 15 45 32 44 48 68 49 frequency
40 52 30 17 44 58 37 48 39 42 distribution
table using
suitable class interval.

Solution: Given that,

Number of students, N = 30
Highest value, H = 68
Lowest value, L = 15
∴ Range, R = H – L
= 68 – 15
= 53
Business Statistics -I

𝑅𝑎𝑛𝑔𝑒
Possible class interval, i =
1+3.322 log 𝑁
53
=
1+3.322 log 30
= 8.97
We will take 10 as the class-interval and the first class as 15 – 25.

Table: Construction of a continuous frequency distribution using exclusive method.

Class Tally marks Frequency
15 – 25 |||| 4
25 – 35 |||| || 7
35 – 45 |||| ||| 8
45 – 55 |||| || 7
55 – 65 ||| 3
65 – 75 | 1
Total N = 30

Problem-2: The obtained marks of 50 students in Business Statistics (out of 100) are as
follows:
39 31 70 25 55 36 59 42 63 57
64 37 45 65 60 45 49 63 54 53
55 39 33 75 65 42 41 82 52 52
26 61 64 30 58 35 15 65 48 42
18 53 50 20 52 40 55 45 45 46
(i) Construct a frequency distribution table taking the class interval 10 – 20, 20 –
30, and so on.
(ii) Calculate the absolute frequency, relative frequency and percentage frequency.
(iii) Calculate cumulative frequency.
(iv) Construct a ‘less than’ cumulative relative frequency distribution.
(v) Construct a ‘more than’ cumulative relative frequency distribution.

Solution:
(i) Table: Construction of a continuous frequency distribution using exclusive method.
Class Tally marks Frequency
10 – 20 || 2
20 – 30 ||| 3
30 – 40 |||| ||| 8
40 – 50 |||| |||| || 12
50 – 60 |||| |||| ||| 13
60 – 70 |||| |||| 9
70 – 80 || 2
80 – 90 | 1
Business Statistics -I

Total N = 50

(ii) Calculation of the absolute frequency, relative frequency and percentage frequency:
Class Absolute Relative Frequency Percentage
Frequency (Absolute/N) Frequency (RF x 100)
10 – 20 2 2/50 = 0.04 0.04 x 100 = 4
20 – 30 3 3/50 = 0.06 0.06 x 100 = 6
30 – 40 8 0.16 16
40 – 50 12 0.24 24
50 – 60 13 0.26 26
60 – 70 9 0.18 18
70 – 80 2 0.04 4
80 – 90 1 0.02 2
Total N = 50

(iii) Cumulative frequency distribution:

Table for calculation of the ‘less than’ cumulative frequency distribution:
Class Frequency Cumulative Frequency
Less than 20 2 2
Less than 30 3 5
Less than 40 8 13
Less than 50 12 25
Less than 60 13 38
Less than 70 9 47
Less than 80 2 49
Less than 90 1 50
Total N = 50
Calculation of the ‘more than’ cumulative frequency distribution:
Class Frequency Cumulative Frequency
More than 10 2 50
More than 20 3 48
More than 30 8 45
More than 40 12 37
More than 50 13 25
More than 60 9 12
More than 70 2 3
More than 80 1 1
Total N = 50

(iv) Calculation of the ‘less than’ cumulative relative frequency distribution:

Business Statistics -I

Class Frequency Less Than Less Than Cumulative

Cumulative Relative Frequency (CF/N)
Frequency
Less than 20 2 2 2/50 = 0.04 = 4%
Less than 30 3 5 5/50 = 0.1 = 10%
Less than 40 8 13 26%
Less than 50 12 25 50%
Less than 60 13 38 76%
Less than 70 9 47 94%
Less than 80 2 49 98%
Less than 90 1 50 100%
Total N = 50

(v) Calculation of the ‘more than’ cumulative frequency distribution:

Class Frequency More than More than Cumulative
Cumulative Relative Frequency (CF/N)
Frequency
More than 10 2 50 50/50 = 1 = 100%
More than 20 3 48 48/50 = 0.96 = 96%
More than 30 8 45 90%
More than 40 12 37 74%
More than 50 13 25 50%
More than 60 9 12 24%
More than 70 2 3 6%
More than 80 1 1 2%
Total N = 50
Problem-3: The daily wages (taka) of 40 workers are given below:

149 123 210 92 148 163 87 127 118 119

89 102 88 142 94 149 144 129 93 97
187 131 204 191 96 104 172 101 183 136
132 195 103 108 108 68 93 146 105 104
(i) Construct a continuous frequency distribution with suitable size of class interval.
(ii) Draw a frequency polygon and frequency curve.
(iii) Draw a histogram and find the modal value.
(iv) Draw ogive curve and find median value. Hence
a) Estimate the limits (or interval) of wages of central 50% of the workers.
b) Obtain the range of wages of middle 50% of the workers.
c) Find the number of workers whose wages lie between Tk. 125 and Tk. 160.

Solution: (i) Given that,

Number of students, N = 40
Highest value, H = 210
Lowest value, L = 68
Business Statistics -I

∴ Range, R = H – L
= 210 – 68
= 142
𝑅𝑎𝑛𝑔𝑒
Possible class interval, i =
1+3.322 log 𝑁
142
=
1+3.322 log 40
= 22.46

We will take 20 as the class-interval and the first class as 60 – 80.

Construction of a continuous frequency distribution using exclusive method.

Class Tally marks Frequency

60 – 80 | 1
80 – 100 |||| |||| 9
100 – 120 |||| |||| 10
120 – 140 |||| | 6
140 – 160 |||| | 6
160 – 180 || 2
180 – 200 |||| 4
200 – 220 || 2
Total N = 40

(ii) Table for drawing frequency polygon and frequency curve:

Class Class Mid-point Frequency

60 – 80 70 1
80 – 100 90 9
100 – 120 110 10
120 – 140 130 6
140 – 160 150 6
160 – 180 170 2
180 – 200 190 4
200 – 220 210 2
Total N = 40

10

8
Business Statistics -I

O 60 80 100 120 140 160 180 200 220

Class Limit 
Figure: Frequency Polygon

10

O 60 80 100 120 140 160 180 200 220

Class Limit 

Figure: Frequency Curve

(iii) Table for drawing Histogram:

Class Frequency
60 – 80 1
80 – 100 9
100 – 120 10
120 – 140 6
140 – 160 6
160 – 180 2
180 – 200 4
200 – 220 2

Total N = 40
Business Statistics -I

10

O 60 80 100 120 140 160 180 200 220

Class Limit 
Figure: Histogram

From the histogram, Mode, Mo = 104

(iv) Table for constructing ogive curve:

Class Frequency Less than cumulative frequency

60 – 80 1 1
80 – 100 9 10
100 – 120 10 20
120 – 140 6 26
140 – 160 6 32
160 – 180 2 34
180 – 200 4 38
200 – 220 2 40
Total N = 40
Business Statistics -I

Less than cf
45
40
35
30
25
20 Less than cf
15
10
5
0
80 100 120 140 160 180 200 220

Figure: Ogive curve

a) Determination of Q1:

Location of Q1 = size of N/4 th observation

= size of 40/4 th observation
= size of 10 th observation

Therefore, Q1 = 100

Determination of Q3:

Location of Q3 = size of 3N/4 th observation

= size of 3 x 40/4 th observation
= size of 30 th observation

Therefore, Q3 = 153

Thus, the limit of wages of central 50% of the workers is Tk. 100 to Tk. 153.

b) The range of wages of middle 50% of the workers is

= 153 – 100 = 53

c) We get from the ogive curve, the number of workers whose wages lie between Tk.
125 and Tk. 160 is equal to 32 – 22 = 10
Business Statistics -I

Problem-4: The following table shows the frequency distribution of weights in kg of 60

students of BBA 1st year of Dhaka City College:

Weights
36 – 40 41 – 45 46 – 50 51 – 55 56 – 60 61 – 65 66 – 70
(Kg)
Number
of 2 10 13 15 10 7 3
students

i) Represent the data by less than ogive and more than ogive curve.
ii) Find the number of students whose weights lie between 47 kg and 57 kg.
iii) Estimate the limit of weights of middle 20% of the students.
iv) Estimate the range of weights of middle 20% of the students.

Solution: Table for calculation of ‘less than’ and ‘more than’ ogive curve:

Class Real Class Frequency Less than More than

cumulative cumulative
frequency frequency
36 – 40 35.5 – 40.5 2 2 60
41 – 45 40.5 – 45.5 10 12 58
46 – 50 45.5 – 50.5 13 25 48
51 – 55 50.5 – 55.5 15 40 35
56 – 60 55.5 – 60.5 10 50 20
61 – 65 60.5 – 65.5 7 57 10
66 – 70 65.5 – 70.5 3 60 3
Total N = 60

60

50

40

30

20
Business Statistics -I

10

O 35.5 40.5 45.5 50.5 55.5 60.5 65.5 70.5

Class Limit 
Figure: ‘Less than’ and ‘more than’ ogive curve

Now we draw a ‘less than’ ogive curve for the solution of (ii), (iii) and (iv).

60

50

40

30

20

10

O 35.5 40.5 45.5 50.5 55.5 60.5 65.5 70.5

Class Limit 
Figure: ‘Less than’ ogive curve

ii) The number of students whose weights lie between 47 kg and 57 kg is

= 43 – 16 = 27

iii) Determination of P40:

Location of P40 = size of 40N/100 th observation
= size of 40 x 60/100 th observation
= size of 24 th observation
Therefore, P40 = 49.5

Determination of P60:
Location of P60 = size of 60N/100 th observation
= size of 60 x 60/100 th observation
= size of 36 th observation
Therefore, P60 = 54.5

Thus, the limit of weights of middle 20% of the students is 49.5 – 54.5.

iv) The range of weights of middle 20% of the students. is

= 54.5 – 49.5 = 5
Business Statistics -I

Problem-5: Represent the following data by a suitable diagram:

Variable 1 2 3 4 5 6
Frequency 50 80 30 12 3 1

Solution: Given that,

Variable 1 2 3 4 5 6 Since the
Frequency 50 80 30 12 3 1 given
distribution is a discrete frequency distribution, we can represent it by the following line
diagram.

80

60

40

20

10 °

1 2 3 4 5 6

Problem-6: Represent the following data by a bar diagram.

Year 1995 1996 1997 1998 1999 2000

Profit (in thousands 2 6 11 15 20 27
Tk.)

Solution:
Business Statistics -I

Profit
30

25

20

15
Profit

10

0
1995 1996 1997 1998 1999 2000

Figure: Simple bar diagram

Problem-7: Represent the following data by a suitable diagram:

Expenditure items Family A Family B

Food 3000 4000
Clothing 2500 2000
Education 500 600
Others 3800 3000
Savings +200 - 300

Solution: Since the multiple bar diagram is used for comparing two or more sets of
statistical data, we can represent the given data by the following multiple bar diagram.
Business Statistics -I

5000

4000

3000

2000 Family A
Family B
1000

0
Food Clothings Education Others Savings
-1000

Figure: Multiple bar diagram

Problem-8: Represent the following data by a sub-divided bar diagram.

Expenditure items Monthly expenditure (in Tk.)

Family A Family B
Food 75 95
Clothing 20 25
Education 15 10
House Rent 40 65
Others 25 35

Solution:
Expenditure Monthly expenditure (in Tk.) Total expenditure
items Family A Family B (in Tk.)
Food 75 95 170
Clothing 20 25 45
Education 15 10 25
House Rent 40 65 105
Others 25 35 60

The sub-divided bar diagram of the above data is given below:

Business Statistics -I

180
160
140
120
100
Family B
80
Family A
60
40
20
0
Food Clothing Education House Rent Others

Figure: Sub-divided bar diagram

Problem-9: Draw a Pie diagram for the following data of production of sugar in quintals of
various countries.
Country Cuba Australia India Japan Egypt
Production of
Sugar (in 62 47 35 16 6
quintals)

Solution: The values are expressed in terms of degree as follows.

Country Production of Sugar

In quintals In degrees
Cuba 62 (62/166) x 360 = 134
Australia 47 (47/166) x 360 = 102
India 35 (35/166) x 360 = 76
Japan 16 (16/166) x 360 = 35
Egypt 6 (6/166) x 360 = 13
Total 166 360
Business Statistics -I

Production

Cuba
Australia
India
Japan
Egypt

Figure: Pie diagram

Exercise-2

Theoretical
Business Statistics -I

Q.1 What do you mean by data or statistical data? Describe the necessity of data
collection.
Q.2 Discuss the different types of data.
Q.3 Discuss the different methods of primary data collection with merits and demerits.
Q.4 Discuss the important sources of secondary data.
Q.5 Distinguish between primary data and secondary data.
Q.6 What is questionnaire? Write down the main characteristics of a questionnaire
preparation.
Q.7 What is variable? Define the various kinds of variables with examples.
Q.8 Define classification. Describe the different types of classification.
Q.9 Write down the importance of classification.
Q.10 What do you mean by table and tabulation? Describe the different types of table.
Q.11 Describe the different parts of a table. Discuss the importance of tabulation.
Q.12 Distinguish between classification and tabulation.
Q.13 What do you mean by frequency and frequency distribution? Discuss the different
types of frequency distribution.
Q.14 How will you prepare a frequency distribution from raw data? Describe the
characteristics of frequency distribution.
Q.15 (i) Describe the different graphs for representing a frequency distribution.
(ii) Define diagram. Write down the general rules for constructing diagrams.
(iii) Describe different types of bar diagrams.
(iv) What do you mean by pie diagram?
Q.16 Explain clearly the role and limitations of diagrams and graphs in presenting
business data.
Q.17 Distinguish between-
(i) Discrete and continuous frequency distribution
(ii) Inclusive and exclusive method
(iii) Graph and diagram
(iv) Histogram and bar diagram
(v) Histogram and frequency polygon

Mathematical
Problem-1: Given below are the marks obtained by 30 students in a class test

70 40 56 86 42 50 60 44 42 63
34 32 33 64 36 46 80 76 31 40
77 56 46 55 81 57 76 66 46 57
Construct a frequency distribution table using suitable class interval.
Business Statistics -I

Problem-2: Given below are the marks obtained by 30 students in a class test

33 32 55 47 21 50 27 12 68 49
40 17 44 48 62 24 33 42 38 45
26 33 44 48 52 30 58 37 38 45
Construct a frequency distribution table taking a class interval of 10 marks.

Problem-3: The following data shows the number of sick employees in 80 days:

7 5 14 11 6 9 11 10 18 25
13 10 10 11 11 12 13 14 23 19
12 16 18 13 13 10 15 7 23 17
10 12 11 16 15 14 18 9 26 18
17 18 18 17 15 17 21 8 23 12
17 16 19 20 22 10 24 11 15 12
24 15 21 22 19 16 19 14 15 14
25 27 26 24 20 16 15 12 13 13

(i) Construct a frequency distribution and draw histogram.

(ii) Plot ogive curve and hence find out the number of sick days that 20 or more
employees were sick.

Problem-4: Arrange the following data in a frequency distribution and hence draw
histogram and frequency polygon.
40 38 44 28 60 21 35 42 40 36
50 67 25 58 30 48 65 35 55 39
72 44 70 55 53 21 76 46 57 67
51 34 41 56 62 42 64 73 38 41

Problem-5: Prepare a frequency table for the following data with width 0f each class
interval is 10. Use exclusive method of classification.
57 44 80 75 0 18 45 28 22 53
51 69 34 22 83 70 20 4 34 84
50 47 10 34 61 66 80 14 66 56
50 47 73 42 33 48 65 57 10 72
75 90 58 46 38 69 10 46 96 64

Problem-6: Prepare a frequency table for the following data with width 0f each class
interval is 20 and mid-point of the first class is 70. Use exclusive method of classification.

106 84 94 111 79 130 144 115 123 100

Business Statistics -I

78 120 121 86 177 69 128 96 119 161

128 84 76 108 115 74 127 150 83 136

Problem-7: The following data gives the number of children in 50 families. Construct a
discrete frequency table.

4 2 0 2 3 2 2 1 0 2
3 5 1 1 4 2 1 3 4 2
6 1 2 2 2 1 3 4 1 0
1 3 4 1 0 1 2 2 2 5
2 4 3 0 1 3 6 1 0 1

Problem-8: In a survey, it was found that 64 families bought milk in the following quantities
in a particular month. Quantity of milk (in liters) bought by 64 Families in a month. Construct
a continuous frequency distribution making classes of 5-9, 10-14 and so on.
19 16 22 9 12 39 19 22
14 23 6 24 16 18 7 17
20 25 28 18 10 24 20 21
10 7 18 28 24 20 14 23
25 34 22 5 33 23 26 29
13 36 11 26 11 37 30 13
8 15 22 21 32 21 31 17
16 23 12 9 15 27 17 21

Problem-9: Show the following data by a line chart:

No. of children 0 1 2 3 4 5
Frequency 10 14 9 6 4 2

Problem-10: Represent the following data by a bar diagram.

Year 1995 1996 1997 1998 1999 2000

Profit (in thousands Tk.) 2 6 11 15 20 27

Problem-11: Represent the following data by a multiple bar diagram.

Workers
Factory
Male Female
A 125 100
B 210 165
C 276 212
Problem-12: Draw a Pie diagram to exhibit the causes of death in the country.
Business Statistics -I

Causes of Diarrhoea Prematurity Bronchitis and Hepatitis

Death and enteritis and atrophy pneumonia
Numbers 60 170 90 30

Problem-13: Draw a histogram and a frequency polygon from the following data.

Profit (in lakh Tk.) 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60

No. of companies 20 30 50 35 25

Problem-14: Draw a frequency curve and ogive curve from the following data.

Age 5 – 10 10 – 15 15 – 20 20 – 25 25 – 30 30 – 35
No. of
2 12 18 30 12 5
persons

Problem-15: You have conducted a market survey with a sample of size 40 regarding
the acceptability of a new product which your company wants to launch. The score of the
respondents on the appropriate scale are as follows:

40 45 41 45 45 30 39 8 48 25
26 9 23 24 26 29 8 40 41 42
39 35 18 25 35 40 42 43 44 36
27 32 28 27 25 26 38 37 36 35

Prepare a frequency table and present the same information as a histogram.

Problem-16: Construct a frequency distribution and then draw Ogive curve and
histogram from the following data

35 65 29 39 57 65 60 69 87 92 40 35 31 26 38 67 77 55
48 50 27 35 49 55 70 42 82 60 58 43 45 29 55 59 30 35
79 86 22 12 30 42 30 54 40 48

Problem-17: The following data refer to the ages of 50 children recorded in months,
obtained in a nutrition survey by a research team:

17 18 21 11 10 12 13 18 15 16
22 14 15 08 09 17 15 14 10 11
10 13 12 17 16 20 19 10 07 12
16 18 21 19 19 15 09 13 19 18
Business Statistics -I

06 11 15 20 13 24 24 17 12 25

Construct a frequency distribution. Draw a histogram. Also find median and mode of ages
of children graphically.

Problem-18: The following is the number of minutes to commute from home to work for
a group of automobile executives.

77 18 63 84 38 54 50 59 54 56
36 26 50 34 44 41 58 58 53 51
62 43 52 53 63 62 62 65 61 52
60 60 45 66 83 71 63 58 61 71

The data are to be organized into a frequency distribution.

i. How many classes would you recommend?
ii. What class interval would you suggest?
iii. What lower limit would you recommend for the first class?
Organize the data into a continuous frequency distribution

Problem-19: The following data shows the monthly expenditure of a family:

Item Food Clothing House Rent Health Education

Expenditure (Tk.) 6000 2000 7000 2000 3000

Present the data by a suitable diagram.

Problem-20: The following data refer to the number of Advertising Spots Purchased by
Members of the Greater Buffalo Automobile Dealers Association:

96 93 88 117 127 95 113 96 108 94

148 156 139 142 94 107 125 155 155 103
112 127 117 120 112 135 132 111 125 104
106 139 134 119 97 89 118 136 125 143
Construct a frequency distribution. Draw ogive curve. Also find median graphically

Problem-21: The Coordinator of BBA wishes to prepare a report showing the number of
hours per week students spend studying. He selects a random sample of 30 students
and determines the number of hours each student studied last week.

15.0 23.7 19.7 15.4 18.3 23.0 14.2 20.8 13.5 20.7
17.4 18.6 12.9 20.3 13.7 21.4 18.3 29.8 17.1 18.9
10.3 26.1 15.7 14.0 17.8 33.8 23.2 12.9 27.1 16.6
Business Statistics -I

i) Construct a frequency distribution table from these raw data.

ii) Draw a frequency polygon.

Problem-22: The profits (in lakh Taka) of 40 branches of a super shop are given below:-
34 36 48 49 31 60 34 43
45 38 32 27 60 29 47 36
50 46 30 46 32 30 33 45
49 48 41 53 36 37 37 47
30 46 50 28 35 35 38 36

i) Construct a frequency distribution table from these raw data.

ii) Draw ogive and hence find the median graphically.

Problem-23: Construct a frequency distribution from the following data:

45 49 30 35 79 86 22 12 15 65
29 39 57 65 60 69 87 92 50 35
31 36 38 67 77 55 48 50 27 35
49 55 70 42 82 60 85 75 55 35

Draw the ogive for the distribution and use it to determine the median wage of a worker.

Problem-24: You have conducted a market survey with a sample of size 40 regarding
the acceptability of a new product which your company wants to launch. The score of the
respondents on the appropriate scale are as follows:
37 39 32 45 45 30 39 8 48 25
26 9 23 24 26 29 8 40 41 42
39 35 18 25 35 40 42 43 44 36
27 32 28 27 25 26 38 40 42 46

Prepare a frequency table and present as frequency polygon.

Problem-25: Form a frequency distribution by taking the class intervals 15 – 20, 20 – 25,
… etc for the following data:

30 42 30 54 40 48 15 17 51 42
25 41 30 27 42 36 28 26 37 54
44 31 36 22 30 31 19 48 16 36
40 42 32 21 22 40 33 41 21 35

Draw an ogive (less than) and hence find median from the graph.
Business Statistics -I

Problem-26: Draw a Histogram and Ogive from the following figures:

Length of service (in No. of Employees

years)
0-5 5
5-10 12
10-15 25
15-20 48
20-25 32
25-30 06
30-35 01

Problem-27: The following data show how the people visit the health centre in a
locality:
Type of visit frequently Occasionally Rarely Never
Number of
40 26 18 16
people (‘000)

Present the data by two suitable graphs.