Business Statistics

Black, Bayley, Castillo

Third Canadian Edition

Chapter 2

Visualizing Data with Charts and Graphs

Copyright ©2020 John Wiley & Sons, Canada Ltd.

2.1 Frequency Distributions (1 of 7)

Ungrouped data
• have not been summarized in any way
• are also called raw data
Grouped data
• logical groupings of data exist
o Example: age ranges (20-29, 30-39, etc.)
• have been organized into a frequency distribution

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2.1 Frequency Distributions (2 of 7)
TABLE 2.1 60 Years of Canadian Unemployment Rates (ungrouped data)
6.0 6.4 12.0 9.5 6.0
7.0 6.3 11.3 9.6 6.1
7.1 5.6 10.5 9.1 8.3
5.9 5.4 9.6 8.3 8.1
5.5 7.1 8.8 7.6 7.5
4.7 7.1 7.8 6.8 7.3
3.9 8.0 7.5 7.2 7.1
3.6 8.4 8.1 7.7 6.9
4.1 7.5 10.3 7.6 6.9
4.8 7.5 11.2 7.2 7.0
4.7 7.6 11.4 6.8 6.3
5.9 11.0 10.4 6.3 5.8

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2.1 Frequency Distributions (3 of 7)

– summary of data presented in the form of class intervals and frequencies

TABLE 2.2 Frequency Distribution of 60 Years of Unemployment Data for Canada

(grouped data)
Class Interval Frequency
2–under 4 2
4–under 6 10
6–under 8 29
8–under 10 11
10–under 12 7
12–under 14 1

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 2.1 Frequency Distributions (4 of 7)
Frequency Distribution
• Vary in shape and design
• Constructed according to the individual business
analyst’s preferences
• Range is defined as the difference
between the largest and smallest
numbers
o The range for the Canadian unemployment
example is 8.4 (12.0 – 3.6)

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2.1 Frequency Distributions (5 of 7)

After calculating the range, determine the number of classes
• Rule of thumb: select between 5 and 15 classes
o Too few classes may be too general to be useful
o Too many classes may not be sufficiently aggregated
• Divide the range by the number of classes
o For the Canadian unemployment example, the analyst chose 6
classes 8.4/6 = 1.4
o Round up to the nearest whole number (= 2)
o Must start at or below the lowest observation and end at or above
the highest observation

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2.1 Frequency Distributions (6 of 7)
Class Midpoint (or Class Mark)
• Value halfway across the class interval
o Calculated as the average of the two endpoints
Relative Frequency
• Proportion of the total frequency that is in any given class
interval in a frequency distribution
Cumulative Frequency
• Running total of frequencies through the classes of a
frequency distribution

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2.1 Frequency Distributions (7 of 7)

TABLE 2.3 Class Midpoints, Relative Frequencies, and Cumulative Frequencies

for Unemployment Data

Class Relative Cumulative

Interval Frequency Midpoint Frequency Frequency
2–under 4 2 3 0.0333 2
4–under 6 10 5 0.1667 12
6–under 8 29 7 0.4833 41
8–under 10 11 9 0.1833 52
10–under 12 7 11 0.1167 59
12–under 14 1 13 0.0167 60
Totals 60 1.0000

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 2.1 Frequency Distributions (Example)
A distribution company in Alberta surveyed 56 of its midlevel managers. The survey
obtained the ages of these managers, which later were organized into the frequency
distribution shown. Determine the class midpoint, relative frequency, and cumulative
frequency for these data.

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2.2 Quantitative Data Graphs (1 of 7)

Histogram — contiguous rectangles that represent the
frequency of data in given class intervals
• x-axis has class intervals; y-axis has frequencies
• Useful for getting an initial overview of the distribution of
the data
• See Figure 2.1 vs Figure 2.2 on the next slide

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2.2 Quantitative Data Graphs (2 of 7)

• Note that the scale of each axis can change the shape of the
histogram Figure 2.1 vs. Figure 2.2

Figure 2.1 Histogram of Figure 2.2 Histogram of

Canadian Unemployment Data Canadian (y-axis compressed)

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2.2 Quantitative Data Graphs (3 of 7)

Frequency Polygon —
graphical display of class
frequencies
• x-axis has class midpoints; y-
axis has frequencies
Figure 2.5 Frequency Polygon of the
• A dot is plotted for each class Unemployment Data
midpoint
• Note that scale of each axis can
also change the shape of the
frequency polygon

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2.2 Quantitative Data Graphs (4 of 7)

Ogive — cumulative frequency

polygon
• x-axis has class endpoints/
midpoints; y-axis has cumulative
frequencies
• A dot is plotted at the endpoint/
midpoints of each class interval
Figure 2.6 Ogive of the Unemployment Data
• Ogives are most useful when the
analyst wants to see running totals
• Steep slopes show sharp increases
in frequencies

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2.2 Quantitative Data Graphs (Example)

• ogive (a cumulative frequency polygon) for the following
data

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2.2 Quantitative Data Graphs (5 of 7)
Stem-and-Leaf Plots — digits for each number are grouped into a
stem and a leaf
• Stems are the leftmost, higher values
• Leaves are the rightmost, lower values
o Useful for observing whether values are in the upper or lower end
of each bracket and seeing the spread of the values
o Retains original data rather than using class midpoints to represent
values
• For 2-digit data, left value is the stem; right value is the leaf
• For numbers with more than 2 digits, split is chosen by the analyst’s
preference

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2.2 Quantitative Data Graphs (6 of 7)

TABLE 2.4 Safety Examination Scores for TABLE 2.5 Stem-and-Leaf Plot for Plant
Plant Trainees Safety Examination Data

Stem Leaf
86 77 91 60 55 2 3
76 92 47 88 67 3 9
23 59 72 75 83 4 7 9
77 68 82 97 89 5 5 6 9
81 75 74 39 67 6 0 7 7 8 8
79 83 70 78 91 7 0 2 4 5 5 6 7 7 8 9
68 49 56 94 81 8 1 1 2 3 3 6 8 9
9 1 1 2 4 7

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2.2 Quantitative Data Graphs (7 of 7)

Construction of the safety examination data stem-and-leaf plot:

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Stem & Leaf: Example

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2.3 Qualitative Data Graphs (1 of 5)
Pie Chart — circular depiction of the data where the area of the
whole pie represents 100% of the data and slices of the pie
represent percentage breakdown of the sublevels
• Shows relative magnitudes of the sublevels of the data.
• Constructed by determining the proportion of the sublevel to
the whole.
• Proportion is each figure divided by the
total.
• Multiply each proportion by 360 degrees
to get the angle for each slice of the pie.
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2.3 Qualitative Data Graphs (2 of 5)

TABLE 2.6 Leading U.S. Petroleum-Refining Companies

Company Annual Sales Proportion

($U.S. millions)
ExxonMobil 270,772 0.4232
Chevron Texaco 147,967 0.2313
ConocoPhillips 121,663 0.1902
Valero Energy 53,919 0.0843
Marathon Petroleum 45,444 0.0710
Totals 639,765 1.0000

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2.3 Qualitative Data Graphs (3 of 5)

Figure 2.7 Pie Chart of Petroleum-Refining Sales by Brand

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2.3 Qualitative Data Graphs (4 of 5)

Bar Graph or Chart — 2 or more categories on one axis, bars for each
category on the other axis
• Horizontal bar graphs are usually called bar charts
• Vertical bar graphs are usually called column charts
TABLE 2.7 Back-to-School Spending Figure 2.8 Bar Chart of Back-to-
by the Average University Student School Spending
Category Amount Spent ($)
Electronics 211.89
Clothing and accessories 134.40
Residence furnishings 90.90
School supplies 68.47
Miscellaneous 93.72

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2.3 Qualitative Data Graphs (5 of 5)

Pareto Chart — a vertical bar chart

(column chart) that displays the most
common types of defects, ranked in
order of occurrence from left to right
• This Pareto chart shows the count
and percentage of each type of
defect found in electric motors. It
also includes an ogive to show
cumulative frequency.
Figure 2.10 Pareto Chart for Electric
Motor Problems

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2.4 Charts and Graphs for Two Variables (1 of 4)

Cross Tabulation — is a process for producing a Level of Job

Banker Satisfaction Age
two-dimensional table that displays the frequency 1 4 53
count for two variables simultaneously 2 3 37
TABLE 2.8 Banker Data Observations by Job 3 1 24

Satisfaction and Age 4 2 28

5 4 46
6 5 62
7 3 41
8 3 32
9 4 29
. . .
. . .
. . .
177 3 51

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2.4 Charts and Graphs for Two Variables (2 of 4)

TABLE 2.9 Cross-Tabulation Table of Banker Data

Age Category: Age Category: Age Category: Total

Under 30 30–50 Over 50
1 7 3 0 10
2 19 14 3 36
Level of Job 3 28 17 12 57
Satisfaction
4 11 22 16 49
5 2 9 14 25
Total 67 65 45 177

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2.4 Charts and Graphs for Two Variables (3 of 4)

Scatter Plot — two-dimensional graph plot of pairs of points

from two numerical variables
• Useful for examining possible relationships between
variables
• Scatter plot here shows the total compensation and base
salary for the 25 highest-paid Canadian CEO’s
• Data shows mixed results (see Table 2.10 and Figure 2.11 on
next slide)

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2.4 Charts and Graphs for Two Variables (4 of 4)
Total Compensation Base Salary
($ thousands) ($ thousands)

83,131 1,300

Table 2.10 Total

28,614 431

24,603 1,030 Figure 2.11 Scatter Plot of Total

Compensation and 21,427 267
Compensation and Base Salary for
Base Salary for the 18,830 2,905
the 25 Highest-Paid Canadian
25 Highest-Paid
17,777 2,110

17,592 1,371 CEO’s

Canadian CEO’s 17,370 1,314

15,872 887

15,855 1,284

15,381 1,803

14,641 618

14,193 86

12,905 1,375

12,752 525

12,578 1,381

12,245 1,467

12,132 1,193

11,998 446

11,894 0($1.00)

11,822 1,373

11,816 1,373

11,764 1,000

11,580 1,457

11,522 1,496

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2.5 Visualizing Time Series Data (1 of 3)

Time Series Data — data gathered on a particular

characteristic over a period of time at regular intervals
• Can be any time period, such as hours, days, years, etc.
• Visualizing time series data using a line chart makes it easier
to see any trends or directions in the data

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2.5 Visualizing Time Series Data (2 of 3)
Motor Vehicles Produced in Motor Vehicles Produced in Japan
Year Canada (thousands) (thousands)

1999 3,059 9,895

Table 2.11 Motor Vehicles 2000 2,962 10,141

Produced from 1999 through 2001 2,533 9,777

2018 for both Canada and Japan 2002 2,629 10,257

2003 2,553 10,286

2004 2,712 10,512

2005 2,688 10,800

2006 2,572 11,484

2007 2,579 11,596

2008 2,082 11,576

2009 1,490 7,934

2010 2,068 9,629

2011 2,135 8,399

2012 2,463 9,943

2013 2,380 9,630

2014 2,394 9,775

2015 2,283 9,278

2016 2,370 9,205

2017 2,200 9,694

2018 2,021 9,729

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2.5 Visualizing Time Series Data (3 of 3)

Figure 2.12 Excel-Produced Line Graph of the Motor Vehicle Data for Canada

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