Statistics for Business

and Economics
Anderson
Sweeney
Williams
Slides by

John Loucks
St. Edwards University
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Chapter 2, Part B
Descriptive Statistics:
Tabular and Graphical Presentations

Exploratory Data Analysis: Stem-and-Leaf

Display
Crosstabulation and Scatter Diagram

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Exploratory Data Analysis

The techniques of exploratory data analysis consist of
simple arithmetic and easy-to-draw pictures that can
be used to summarize data quickly.
One such technique is the stem-and-leaf display.

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Stem-and-Leaf Display
A stem-and-leaf display shows both the rank order
and shape of the distribution of the data.
It is similar to a histogram on its side, but it has the
advantage of showing the actual data values.
The first digits of each data item are arranged to the
left of a vertical line.
To the right of the vertical line we record the last
digit for each item in rank order.
Each line in the display is referred to as a stem.
Each digit on a stem is a leaf.

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Example: Hudson Auto Repair

The manager of Hudson Auto would like to
gain a
better understanding of the cost of parts used in
the
engine tune-ups performed in the shop. She
examines
50 customer invoices for tune-ups. The costs of
parts,
rounded to the nearest dollar, are listed on the
next
slide.

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Stem-and-Leaf Display
Example: Hudson Auto Repair
Sample
91 78 ups
93
71 69 72
104 74 62
85 97 88
62 82 98

of Parts Cost ($) for

57 75 52 99
89 66 75 79
68 97 105 77
68 83 68 71
101 79 105 79

50 Tune80 97
75 72
65 80
69 67
69 62

62
76
109
74
73

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Stem-and-Leaf Display
Example: Hudson Auto Repair
5 2 7
6 2 2 2 2 5 6 7 8 8 8 9 9 9
17 1 2 2 3 4 4 5 5 5 6 7 8 9 9 9
8 0 0 2 3 5 8 9
9 1 3 7 7 7 8 9
10 1 4 5 5 9
a stem

a leaf

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Stretched Stem-and-Leaf Display

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

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Stretched Stem-and-Leaf Display

Example: Hudson Auto Repair
5 2
5 7
6 2 2 2 2
65 6 7 8 8 8 9 9 9
71 1 2 2 3 4 4
75 5 5 6 7 8 9 9 9
8 0 0 2 3
8 5 8 9
9 1 3
9 7 7 7 8 9
10 1 4
10 5 5 9
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Stem-and-Leaf Display
Leaf Units
A single digit is used to define each leaf.

In the preceding example, the leaf unit was 1.

Leaf units may be 100, 10, 1, 0.1, and so on.

Where the leaf unit is not shown, it is assumed

to equal 1.
The leaf unit indicates how to multiply the stemand-leaf numbers in order to approximate the
original data.

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Example: Leaf Unit = 0.1

If we have data with values such as
8.6
8.6

11.7
11.7 9.4
9.4

9.1
9.1

10.2
10.2 11.0
11.0 8.8
8.8

a stem-and-leaf display of these data will be

Leaf Unit
8 6
9 1
10 2
11 0

= 0.1
8
4
7

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Example: Leaf Unit = 10

If we have data with values such as
1806
1806 1717
1717 1974
1974 1791
1791 1682
1682 1910
1910 1838
1838
a stem-and-leaf display of these data will be
Leaf Unit = 10
16 8
The 82 in 1682
17 1 9
is rounded down
to 80 and is
18 0 3
represented as an
19 1 7
8.

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Crosstabulations and Scatter Diagrams

Thus far we have focused on methods that are used
to summarize the data for one variable at a time.
Often a manager is interested in tabular and
graphical methods that will help understand the
relationship between two variables.
Crosstabulation and a scatter diagram are two
methods for summarizing the data for two variables
simultaneously.

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Crosstabulation
A crosstabulation is a tabular summary of data for
two variables.

Crosstabulation can be used when:

one variable is qualitative and the other is
quantitative,
both variables are qualitative, or
both variables are quantitative.

The left and top margin labels define the classes for
the two variables.

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Crosstabulation
Example: Finger Lakes Homes
The number of Finger Lakes homes sold for
each
style andquantitative
price for the past two years
is shown
categorical
below. variable
variable
Home Style
Price
Log
Split A-Frame Total
Range Colonial
< $200,000
18
12
> $200,000
Total

6
14
30

20

19
16
35

12
3
15

55
45

100

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Crosstabulation
Example: Finger Lakes Homes
Insights Gained from Preceding Crosstabulation

The greatest number of homes (19) in the sample

are a split-level style and priced at less than
$200,000.

Only three homes in the sample are an A-Frame

style and priced at $200,000 or more.

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Crosstabulation
Frequency
distribution
Example: Finger Lakes Homes
for the
price range
variable

Home Style
Price
Log
Range Colonial
< $200,000
18
12
> $200,000
Total

6
14
30

20

Frequency distribution
for
the home style variable

Split A-Frame Total

19
16
35

12
3
15

55
45

100

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Crosstabulation: Row or Column

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

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Crosstabulation: Row Percentages

Example: Finger Lakes Homes
Price
Range

Home Style
Colonial Log

< $200,000
32.73
26.67
> $200,000

Split

10.91 34.55
31.11 35.56

A-Frame Total
21.82
6.67

100
100

Note: row totals are actually 100.01 due to rounding.

(Colonial and > $200K)/(All > $200K) x 100 = (12/45) x 100

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Crosstabulation: Column Percentages

Example: Finger Lakes Homes
Price
Range

Home Style
Colonial Log

< $200,000
60.00
40.00
> $200,000
Total

100

Split

30.00 54.29
70.00 45.71
100

100

A-Frame
80.00
20.00
100

(Colonial and > $200K)/(All Colonial) x 100 = (12/30) x 100

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Crosstabulation: Simpsons Paradox

Data in two or more crosstabulations are often
aggregated to produce a summary crosstabulation.
We must be careful in drawing conclusions about the
relationship between the two variables in the
aggregated crosstabulation.
In some cases the conclusions based upon an
aggregated crosstabulation can be completely
reversed if we look at the unaggregated data. The
reversal of conclusions based on aggregate and
unaggregated data is called Simpsons paradox.

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Scatter Diagram and Trendline

A scatter diagram is a graphical presentation of the
relationship between two quantitative variables.
One variable is shown on the horizontal axis and
the other variable is shown on the vertical axis.
The general pattern of the plotted points suggests
the overall relationship between the variables.
A trendline provides an approximation of the
relationship.

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Scatter Diagram
A Positive Relationship

x
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Scatter Diagram
A Negative Relationship

x
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Scatter Diagram
No Apparent Relationship

x
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Scatter Diagram
Example: Panthers Football Team
The Panthers football team is interested in
investigating the relationship, if any, between
interceptions made and points scored.
x = Number of y = Number of
Interceptions
Points Scored
1
3
2
1
3

14
24
18
17
30

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Scatter Diagram

Number of Points Scored

y
35
30
25
20
15
10
5
0

x
0

Number of Interceptions
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Example: Panthers Football Team

Insights Gained from the Preceding Scatter

Diagram
The
scatter diagram indicates a positive relationship
between the number of interceptions and the
number of points scored.

Higher points scored are associated with a higher

number of interceptions.

The relationship is not perfect; all plotted points in

the scatter diagram are not on a straight line.

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Scatter Diagram and Trendline

Scatter Diagram for the Panthers
35
Number of
Points Scored.

30
25
20
15
10
5
0
0

1
2
3
Number of Interceptions

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Tabular and Graphical Methods

Data
Categorical Data
Tabular
Methods

Graphical
Methods

Frequency
Bar Chart
Pie Chart
Distribution
Rel. Freq. Dist.
Percent Freq.
Distribution
Crosstabulation

Quantitative Data
Tabular
Methods
Frequency

Distribution

Rel. Freq. Dist.

% Freq. Dist.
Cum. Freq. Dist.
Cum. Rel. Freq.
Distribution
Cum. % Freq.
Distribution
Crosstabulation

Graphical
Methods
Dot Plot
Histogram
Ogive
Stem-andLeaf Display
Scatter
Diagram

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End of Chapter 2, Part B

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