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Chapter 2

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15 views33 pages

Chapter 2

Uploaded by

shanjidakterimi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Describing Data:

Frequency Tables, Frequency


Distributions, and Graphic Presentation

Lecture# 02
(Chapter 2)

McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc. 2008


GOALS

•Organize qualitative data into a frequency table.

•Present a frequency table as a “bar chart” (Excel


they are called column chart) or a pie chart.

•Organize quantitative data into a frequency


distribution.

•Present a frequency distribution for quantitative data


using histograms, frequency polygons, and
cumulative frequency polygons.

2
Frequency Table

● Frequency Table: A grouping of qualitative data into


mutually exclusive classes (categories) showing the
number of observations in each class

3
Mutually Exclusive

● An individual, object, or measurement is


included in only one category
– It can’t be in two categories
– Example: A particular phone call cannot
originate with both AT&T and MCI

4
Relative Class Frequencies

● Class frequencies can be converted to relative class


frequencies to show the fraction of the total number of
observations in each class.
● A relative frequency captures the relationship between
a class total and the total number of observations.

5
Textbook: Bar Charts 🡺
Excel: Column Chart

🡸 In Excel, this
is a Column
chart. Column
charts are good
for Nominal
Level Data.
Notice that the
columns do not
touch.

6
Pie Charts

7
Frequency Distribution

A Frequency distribution is a
grouping of data into mutually
exclusive categories showing
the number of observations in
each class.

•The raw data are more easily interpreted if organized into a frequency
distribution
•The resulting frequency distribution helps a person to quickly see the
“shape” of the data
•Although the frequency distribution will result in the loss of some detail,
seeing patterns in the data can help a person to make better decisions

8
5 Steps To Organize Raw Data Into A
Frequency Distribution

● Step 1: Decide on Number of Classes


● Step 2: Determine The Class Interval
● Step 3: Set The Individual Class Limits
● Step 4: Tally The Data Into Classes
● Step 5: Count The Tallies in Each Class & Present
the Frequency Distribution

9
Step 1: Determining The Number Of Classes

● Goal is to use just enough classes so you General


can see the “shape” of the data. guidelines that
● You must use professional judgment. are not always
● Useful recipe to determine the number possible to
of classes: follow. Thus,
2k ≥ n making
n = total observations Frequency
k = number of classes Distributions is
often refer to
● Best to use 5 < k < 15 as an “art”.

10
Definitions

● Class Interval
– Distance between lower limit of class and lower limit of
the next class
– The class interval is obtained by subtracting the lower
limit of a class from the lower limit of the next class (also
midpoint to midpoint)
● Class Midpoint (Class Mark)
– The midpoint can be thought of as the “typical value” for
the class
– This is the average of the upper and lower class limits:
(Lower class limit + upper class limit)/2

11
Step 2: Determine The Class Interval Or Width

● Class interval should be ● The classes all taken


the same for every together must cover at
interval least the distance from
the lowest value in the
– If they are not equal raw data up to the highest
graphs may be value:
misleading, &
calculations may be
problematic
– In some cases, where
there is a potential for
many empty classes,
unequal class interval
may be necessary

12
EXAMPLE – Creating a Frequency Distribution Table

Ms. Kathryn Ball of AutoUSA


wants to develop tables, charts,
and graphs to show the typical
selling price on various dealer
lots. The table on the right
reports only the price of the 80
vehicles sold last month at
Whitner Autoplex.

13
Constructing a Frequency Table -
Example

● Step 1: Decide on the number of classes.


A useful recipe to determine the number of classes (k) is
the “2 to the k rule.” such that 2k > n.

There were 80 vehicles sold. So n = 80. If we try k = 6, which means


we would use 6 classes, then 26 = 64, somewhat less than 80.
Hence, 6 is not enough classes. If we let k = 7, then 27 128,
which is greater than 80. So the recommended number of classes
is 7.

● Step 2: Determine the class interval or width.


The formula is: i ≥ (H-L)/k where i is the class interval, H is
the highest observed value, L is the lowest observed value,
and k is the number of classes.
($35,925 - $15,546)/7 = $2,911
Round up to some convenient number, such as a multiple of 10
or 100. Use a class width of $3,000

14
Step 3: Set The Individual Class Limits

● Classes must be mutually exclusive


● Avoid overlapping or unclear class limits: General
– Include lower limit guidelines that
– Exclude upper limit
● Example of class limits: are not always
– $12,000 up to $15,000 and $15,000 up to possible to
$18,000
● $12,000 & $14,999 belong in the first class follow. Thus,
● $15,000 belongs in the second class
making
● Avoid open ended classes (problems with
graphing) Frequency
● The lower limit of the first class should be a Distributions
multiple of the class interval (not always
possible) is often refer
● Convenient multiples of ten are useful to as an “art”.
● You must compare the actual range to the
range implied by the number of classes &
class interval
15
Constructing a Frequency Table -
Example

● Step 3: Set the individual class limits

16
Constructing a Frequency Table

● Step 4: Tally the vehicle


selling prices into the
classes.

● Step 5: Count the number


of items in each class.

17
Observed Patterns:

● Range: about $15,000 to


about $36,000
● Concentration between
$18,000 & $27,000
● Largest concentration is
in $18,000 - $21,000
class
– Typical Value = (18+21)/2 = 19.5
K.
● Two sold for $33,000 or
more
● 8 sold for less than
$18,000
18
Relative Frequency Distribution

To convert a frequency distribution to a relative frequency


distribution, each of the class frequencies is divided by the
total number of observations.

19
Graphic Presentation of a Frequency
Distribution

The three commonly used graphic forms


are:
● Histograms
● Frequency polygons
● Cumulative frequency distributions

20
Histogram
Histogram for a frequency distribution based on quantitative data is
very similar to the column charts (book says: bar chart) showing the
distribution of qualitative data. The classes are marked on the
horizontal axis and the class frequencies on the vertical axis. The
class frequencies are represented by the heights of the bars. The
columns must touch in order to visually articulate that the class
interval spans from lower class limit to upper class limit.

21
Other Notes About Histogram

● Histograms constructed from Relative Frequency


Distributions look the same (have the same shape), but
instead, the vertical axis would show percentages
● Histograms must have the columns touching:
– The columns must touch in order to visually articulate that the class
interval spans from lower class limit to upper class limit (a
continuous variable)
– For nominal or ordinal level data, the columns are not drawn
adjacent to each other
● The category labels are usually words

22
Frequency Polygon

● A frequency polygon
also shows the shape
of a distribution and is
similar to a histogram.

● It consists of line
segments connecting
the points formed by
the intersections of the
class midpoints and the
class frequencies.

23
Cumulative Frequency Distribution

24
Cumulative Frequency Distribution

25
Second Example of a Cumulative Frequency Distribution
(prices of vehicles are lower)🡺

26
Cumulative Frequency Polygon

27
Cumulative Frequency Polygon
● Plot line on coordinate
system
● X-axis = Upper limit of
class
● Y-axis (Left) = Cumulative
Frequency
● Y-axis (Right) = %
● First point on graph is:
(lower limit of first class, 0)

28
Cumulative Frequency Polygon

29
Cumulative Frequency Polygon

50% of the
vehicles
sold for
less than
about
$19,500

30
Cumulative Frequency Polygon

25 of the
vehicles
sold for
less than
about
$17,500

31
Cumulative Frequency Polygon

80% of the
vehicles
sold for
less than
about
$24,000

32
End of Chapter 2

33

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