Chapter 2

Organizing and
Visualizing Variables

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 Objectives
In this chapter you learn:
 How to organize and visualize categorical
variables.
 How to organize and visualize numerical
variables.
 How to visualizing Two Numerical Variables.

A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 2

 Organizing Data Creates Both
Tabular And Visual Summaries
DCOVA
 Summaries both guide further exploration and
sometimes facilitate decision making.

 Visual summaries enable rapid review of larger

amounts of data & show possible significant
patterns.

 Often, the Organize and Visualize step in

DCOVA occur concurrently.

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Categorical Data Are Organized By
Utilizing Tables
DCOVA
Categorical
Data

Tallying Data

One Two
Categorical Categorical
Variable Variables

Summary Contingency
Table Table

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 Organizing Categorical Data:
Summary Table DCOVA
 A summary table tallies the frequencies or percentages of items in a set
of categories so that you can see differences between categories.

Devices Millennials Use to Watch Movies or Television Shows

Devices Used To Watch Movies or TV Shows Percent

Television Set 49%
Tablet 9%
Smartphone 10%
Laptop / Desktop 32%

Source: Data extracted and adapted from A. Sharma, “Big Media Needs to Embrace
Digital Shift Not Fight It,” Wall Street Journal, June 22, 2016, p. 1-2.

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 A Contingency Table Helps Organize
Two or More Categorical Variables
DCOVA
 Used to study patterns that may exist between
the responses of two or more categorical
variables.

 Cross tabulates or tallies jointly the responses

of the categorical variables.

 For two variables the tallies for one variable are

located in the rows and the tallies for the
second variable are located in the columns.
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 Contingency Table - Example
DCOVA
 A random sample of 400
Contingency Table Showing
invoices is drawn. Frequency of Invoices Categorized
 Each invoice is categorized By Size and The Presence Of Errors
as a small, medium, or large No
Errors Errors Total
amount.
Small 170 20 190
 Each invoice is also Amount
examined to identify if there Medium 100 40 140
are any errors. Amount
 This data are then organized Large 65 5 70
in the contingency table to Amount
the right. Total 335 65 400

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 Contingency Table Based On
Percentage Of Overall Total DCOVA
No
Errors Errors Total 42.50% = 170 / 400
Small 170 20 190 25.00% = 100 / 400
Amount 16.25% = 65 / 400
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 42.50% 5.00% 47.50%
Total 335 65 400 Amount
Medium 25.00% 10.00% 35.00%
Amount
83.75% of sampled invoices
Large 16.25% 1.25% 17.50%
have no errors and 47.50% Amount
of sampled invoices are for Total 83.75% 16.25% 100.0%
small amounts.
A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 8
 Contingency Table Based On
Percentage of Row Totals DCOVA
No
Errors Errors Total 89.47% = 170 / 190
Small 170 20 190 71.43% = 100 / 140
Amount 92.86% = 65 / 70
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 89.47% 10.53% 100.0%
Total 335 65 400 Amount
Medium 71.43% 28.57% 100.0%
Amount
Medium invoices have a larger
Large 92.86% 7.14% 100.0%
chance (28.57%) of having Amount
errors than small (10.53%) or Total 83.75% 16.25% 100.0%
large (7.14%) invoices.
A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 9
 Contingency Table Based On
Percentage Of Column Totals DCOVA
No
Errors Errors Total 50.75% = 170 / 335
Small 170 20 190 30.77% = 20 / 65
Amount
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 50.75% 30.77% 47.50%
Total 335 65 400 Amount
Medium 29.85% 61.54% 35.00%
Amount
There is a 61.54% chance
Large 19.40% 7.69% 17.50%
that invoices with errors are Amount
of medium size. Total 100.0% 100.0% 100.0%

A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 10

 Tables Used For Organizing
Numerical Data
DCOVA
Numerical Data

Ordered Array Frequency Cumulative

Distributions Distributions

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 Organizing Numerical Data:
Ordered Array
DCOVA
 An ordered array is a sequence of data, in rank order, from the
smallest value to the largest value.
 Shows range (minimum value to maximum value).
 May help identify outliers (unusual observations).

Age of Day Students

Surveyed
College 16 17 17 18 18 18
Students 19 19 20 20 21 22
22 25 27 32 38 42
Night Students
18 18 19 19 20 21
23 28 32 33 41 45
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 Organizing Numerical Data:
Frequency Distribution
DCOVA
 The frequency distribution is a summary table in which the data are
arranged into numerically ordered classes.

 You must give attention to selecting the appropriate number of class

groupings for the table, determining a suitable width of a class grouping,
and establishing the boundaries of each class grouping to avoid
overlapping.

 The number of classes depends on the number of values in the data. With
a larger number of values, typically there are more classes. In general, a
frequency distribution should have at least 5 but no more than 15 classes.

 To determine the width of a class interval, you divide the range (Highest
value–Lowest value) of the data by the number of class groupings
desired.
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 Organizing Numerical Data:
Frequency Distribution Example
DCOVA

Example: A manufacturer of insulation randomly

selects 20 winter days and records the daily high
temperature in degrees Fahrenheit.

24, 35, 17, 21, 24, 37, 26, 46, 58, 30, 32, 13, 12, 38, 41, 43, 44, 27, 53, 27

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 Organizing Numerical Data:
Frequency Distribution Example
DCOVA
 Sort raw data in ascending order:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58.
 Find range: 58 - 12 = 46.
 Select number of classes: 5 (usually between 5 and 15).
 Compute class interval (width): 10 (46/5 then round up).
 Determine class boundaries (limits):

Class 1: 10 but less than 20.

Class 2: 20 but less than 30.

Class 3: 30 but less than 40.

Class 4: 40 but less than 50.

Class 5: 50 but less than 60.
 Compute class midpoints: 15, 25, 35, 45, 55.
 Count observations & assign to classes.

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 Organizing Numerical Data: Frequency
Distribution Example
DCOVA
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Class Midpoints Frequency

10 but less than 20 15 3

20 but less than 30 25 6
30 but less than 40 35 5
40 but less than 50 45 4
50 but less than 60 55 2
Total 20

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 Organizing Numerical Data: Relative &
Percent Frequency Distribution Example
DCOVA
Relative
Class Frequency Frequency Percentage

10 but less than 20 3 .15 15%

20 but less than 30 6 .30 30%
30 but less than 40 5 .25 25%

40 but less than 50 4 .20 20%

50 but less than 60 2 .10 10%

Total 20 1.00 100%

Relative Frequency = Frequency / Total, e.g. 0.10 = 2 / 20

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 Organizing Numerical Data: Cumulative
Frequency Distribution Example
DCOVA
Cumulative Cumulative
Class Frequency Percentage
Frequency Percentage

10 but less than 20 3 15% 3 15%

20 but less than 30 6 30% 9 45%
30 but less than 40 5 25% 14 70%
40 but less than 50 4 20% 18 90%
50 but less than 60 2 10% 20 100%
Total 20 100% 20 100%

Cumulative Percentage = Cumulative Frequency / Total * 100 e.g. 45% = 100*9/20

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Why Use a Frequency Distribution?
DCOVA
 It condenses the raw data into a more
useful form.
 It allows for a quick visual interpretation of
the data.
 It enables the determination of the major
characteristics of the data set including
where the data are concentrated /
clustered.

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 Frequency Distributions:
Some Tips
DCOVA
 Different class boundaries may provide different pictures for
the same data (especially for smaller data sets).

 Shifts in data concentration may show up when different

class boundaries are chosen.

 As the size of the data set increases, the impact of

alterations in the selection of class boundaries is greatly
reduced.

 When comparing two or more groups with different sample

sizes, you must use either a relative frequency or a
percentage distribution.

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 Visualizing Categorical Data
Through Graphical Displays
DCOVA
Categorical
Data
Visualizing Data

Summary Contingency
Table For One Table For Two
Variable Variables

Bar Pareto Side By Side Doughnut

Chart Chart Bar Chart Chart

Pie or
Doughnut Chart
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 Visualizing Categorical Data:
The Bar Chart
DCOVA
 The bar chart visualizes a categorical variable as a series of bars. The
length of each bar represents either the frequency or percentage of
values for each category. Each bar is separated by a space called a gap.

Devices Percent
Used to
Watch
Television Set 49%
Tablet 9%
Smartphone 10%
Laptop / 32%
Desktop

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 Visualizing Categorical Data:
The Pie Chart
DCOVA
 The pie chart is a circle broken up into slices that represent categories.
The size of each slice of the pie varies according to the percentage in
each category.

Devices Percent
Used to
Watch
Television Set 49%
Tablet 9%
Smartphone 10%
Laptop / 32%
Desktop

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 Visualizing Categorical Data:
The Doughnut Chart DCOVA
 The doughnut chart is the outer part of a circle broken up into pieces
that represent categories. The size of each piece of the doughnut varies
according to the percentage in each category.

Devices Percent
Used to
Watch
Television Set 49%
Tablet 9%
Smartphone 10%
Laptop / 32%
Desktop

A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 24

 Visualizing Categorical Data:
The Pareto Chart
DCOVA
 Used to portray categorical data (nominal
scale).
 A vertical bar chart, where categories are
shown in descending order of frequency.
 A cumulative polygon is shown in the same
graph.
 Used to separate the “vital few” from the “trivial
many.”
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 Visualizing Categorical Data:
The Pareto Chart (con’t) DCOVA
Ordered Summary Table For Causes
Of Incomplete ATM Transactions
Cumulative
Cause Frequency Percent Percent
Warped card jammed 365 50.41% 50.41%
Card unreadable 234 32.32% 82.73%
ATM malfunctions 32 4.42% 87.15%
ATM out of cash 28 3.87% 91.02%
Invalid amount requested 23 3.18% 94.20%
Wrong keystroke 23 3.18% 97.38%
Lack of funds in account 19 2.62% 100.00%
Total 724 100.00%
Source: Data extracted from A. Bhalla, “Don’t Misuse the Pareto Principle,” Six Sigma Forum
Magazine, May 2009, pp. 15–18.

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 Visualizing Categorical Data:
The Pareto Chart (con’t) DCOVA

The “Vital
Few”
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 Visualizing Categorical Data:
Side By Side Bar Charts DCOVA
 The side by side bar chart represents the data from a contingency
table.
No
Errors Errors Total
Invoice Size Split Out By Errors
Small 50.75% 30.77% 47.50% & No Errors
Amount
Medium 29.85% 61.54% 35.00% Errors

Amount
Large 19.40% 7.69% 17.50% No Errors
Amount
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Total 100.0% 100.0% 100.0%
Large Medium Small

Invoices with errors are much more likely to be of

medium size (61.5% vs 30.8% & 7.7%).
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 Visualizing Categorical Data:
Doughnut Charts DCOVA
 A Doughnut Chart can be used to represent the data from a contingency table.

No
Errors Errors Total Invoice Size & Errors
Inner Ring With Errors, Outer Ring No
Small 50.75% 30.77% 47.50% Errors
Amount 19.4%

30.8%
Medium 29.85% 61.54% 35.00% 7.7%
30.8%

Amount 61.5%

Large 19.40% 7.69% 17.50% 29.9%

Amount
Small Medium Large
Total 100.0% 100.0% 100.0%

Invoices with errors are much more likely to be of

medium size (61.5% vs 30.8% & 7.7%).
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 Visualizing Numerical Data
By Using Graphical Displays
DCOVA
Numerical Data

Frequency Distributions
Ordered Array and
Cumulative Distributions

Stem-and-Leaf
Display Histogram Polygon Ogive

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 Stem-and-Leaf Display
DCOVA

 A simple way to see how the data are distributed

and where concentrations of data exist.

METHOD: Separate the sorted data series

into leading digits (the stems) and
the trailing digits (the leaves).

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 Organizing Numerical Data:
Stem and Leaf Display
DCOVA
 A stem-and-leaf display organizes data into groups (called
stems) so that the values within each group (the leaves)
branch out to the right on each row.
Age of College Students

Age of Day Students Day Students Night Students

Surveye
16 17 17 18 18 18 Stem Leaf
d College Stem Leaf
Students 19 19 20 20 21 22
1 67788899 1 8899
22 25 27 32 38 42
Night Students 2 0012257 2 0138
18 18 19 19 20 21
3 28 3 23
23 28 32 33 41 45
4 2
4 15

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 Visualizing Numerical Data:
The Histogram
DCOVA
 A vertical bar chart of the data in a frequency distribution is
called a histogram.

 In a histogram there are no gaps between adjacent bars.

 The class boundaries (or class midpoints) are shown on the

horizontal axis.

 The vertical axis is either frequency, relative frequency, or

percentage.

 The height of the bars represent the frequency, relative

frequency, or percentage.

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 Visualizing Numerical Data:
The Histogram
DCOVA
Relative
Class Frequency Frequency Percentage

10 but less than 20 3 .15 15

20 but less than 30 6 .30 30
30 but less than 40 5 .25 25

40 but less than 50 4 .20 20 8

50 but less than 60 2 .10 10 Histogram:Age
Histogram: Temperature
Of Students
Total 20 1.00 100
6

Frequency
4
(In a percentage
histogram the vertical
axis would be defined to 2
show the percentage of
observations per class).
0
5 15 25 35 45 55 More

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 Visualizing Numerical Data:
The Percentage Polygon
DCOVA
 A percentage polygon is formed by having the midpoint of
each class represent the data in that class and then connecting
the sequence of midpoints at their respective class
percentages.

 The cumulative percentage polygon, or ogive, displays the

variable of interest along the X axis, and the cumulative
percentages along the Y axis.

 Useful when there are two or more groups to compare.

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Visualizing Numerical Data:
The Frequency Polygon DCOVA
Useful When Comparing Two or More Groups

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Visualizing Numerical Data:
The Percentage Polygon
DCOVA

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Visualizing Numerical Data:
The Cumulative Percentage Polygon (Ogive)
DCOVA
Useful When Comparing Two or More Groups

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Visualizing Numerical Data:
The Cumulative Percentage Polygon (Ogive)
DCOVA

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Visualizing Two Numerical Variables
By Using Graphical Displays
DCOVA

Two Numerical
Variables

Scatter Time-
Plot Series
Plot

A L WAY S L E A R N I N G Copyright © 2019 Pearson Education, Inc. Slide 40

 Visualizing Two Numerical
Variables: The Scatter Plot
DCOVA
 Scatter plots are used for numerical data consisting of paired
observations taken from two numerical variables.

 One variable’s values are displayed on the horizontal or X

axis and the other variable’s values are displayed on the
vertical or Y axis.

 Scatter plots are used to examine possible relationships

between two numerical variables.

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 Scatter Plot Example
DCOVA

Volume Cost per

per day day
Cost per Day vs. Production Volume
23 125
250
26 140
200
29 146
Cost per Day

150
33 160
100
38 167
50
42 170
0
50 188
20 30 40 50 60 70
55 195
Volume per Day
60 200

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Visualizing Two Numerical
Variables: The Time Series Plot
DCOVA
 A Time-Series Plot is used to study
patterns in the values of a numeric
variable over time.

 The Time-Series Plot:

 Numeric variable’s values are on the
vertical axis and the time period is on
the horizontal axis.

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 Time Series Plot Example
DCOVA
Number of
Year Franchises
2009 43
2010 54
2011 60
Number of Franchises
2012 73 120

2013 82
100
2014 95
Number of Franchises

80
2015 107
2016 99 60

2017 95 40

20

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year

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 Chapter Summary
In this chapter we covered:
 Organizing and visualizing categorical variables.
 Organizing and visualizing numerical variables.
 How to visualizing Two Numerical Variables.

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