Variable

An item of data
Examples:
gender
test scores
weight
Value varies from one observation to
another
Types/Classifications of Variables
Qualitative
Quantitative
Discrete
Continuous
 Qualitative Data
Describes the quality
Non-numerical format
Counts
Cannot order or measure
Examples
gender
marital status
geographical region
job title.
 Categorical data
Non-overlapping categories or
characteristics
Examples:
Completes/Incompletes
Professions
Gender
 Quantitative Data
Frequencies
Measurements
 Discrete
Measurements are integers

Examples:
number of employees of a company
number of incorrect answers on a test
number of participants in a program
 Continuous
Measurements can take on any value -
usually within some range
Examples:
Age
Income
Arithmetic operations such as differences
and averages make sense.
Qualitatiave or Quantitative?
Discrete or Continuous?
Score on a placement exam
Preferred restaurant
Dollar amount of a loan
Height
Salary
Length of time to complete a task
Number of applicants
Ethnic origin
 Treatment as Ranks
Natural order
Not strictly measured
Examples:
Age group
Likert Scale data
Distinction between adjacent points on the
scale is not necessarily the same
 Analysis
Qualitative Data
Frequency tables
Modes - most frequently occurring
Graphs: Bar Charts and Pie Charts
 Analysis
Quantitative Data
Any form
Create groups or categories and generate
frequency tables
All descriptive statistics
 Effective Graphs:
Quantitative Data
Histograms
Stem-and-Leaf plots
Dot Plots
Box plots
XY Scatter Plots (2 variables).
Examples of Graphs
 Pie Chart

Performance Appraisals
10%

38%
More Difficult
14%
Difficult
Same
Much Easier
Easier

33%
90
80
70
60
50 East
40 West
30 North
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
 Histogram
Histogram

12
10
8
Frequency

6
4
2
0
49 59 69 79 89 99
Score
 Boxplot
Boxplot of C1

20 30 40 50 60 70 80 90 100 110

C1
Stem and Leaf Plot
Stem and Leaf Plot
Weight of Meat

7 5
8 3
8 7999
9 23
9 66789
10
10 688
11 2244
11 788
12 4
12 8
13
13 8
14 1
 Analyze Ranked Data
Frequency tables
Mode, Median, Quartiles
Graphs:
Bar Charts
Dot Plots, Pie Charts
Line Charts (2 variables)
 Data Example
Suggest some ways you could analyze these items.

Score on a placement exam

Preferred restaurant
Dollar amount of a loan
Height
Salary
Length of time to complete a task
Number of applicants
Ethnic origin
 Tables and Graphs
Note Excel will create any graph that you
specify

Consider the type of data before selecting

your graph.
 Frequency Table/Frequency
Distribution
Summarize data:
categorical
nominal
Continuous data - the data set has been
divided into meaningful groups
 Frequency Distribution
Count the number of observations that fall
into each category.

Frequency: the number associated with each

category
 Relative Frequency Distribution
Proportion of observations falling in a given
category

Report relative frequencies or percentages

 Example
Frequency Distribution
No. of Defective Parts n
0 &< 2 0
2 4 4
4 6 5
6 8 12
8 10 14
10 12 9
12 14 10
14 16 6
 Graphs
Categorical/Qualitative Data
 Pie Charts
Circle - divided Viet Swedish
proportionately Namese 5%
15%

English
Spanish 55%
Segment - percentage of 25%
the whole that falls into
each category Native Language
 Bar Charts
Bar charts - % in various
categories Average Units Sold (per person) by Product

Vertical scale - 20

frequencies, relative

Average Sold/Person
15

frequencies 10

Horizontal scale -
5 Bef ore Training

A f ter Training
0
categories B41 BA 42 B41F C21 Other

Allows comparisons
Product
 Constructing Bar Charts
All boxes should have the same width
Gaps between the boxes - no connection
between
Any order.
Use to represent two categorical variables
simultaneously
 Graphs: Measured
Continues Quantitative Data
Histograms
Stem and Leaf
Box plots
Line Graphs
XY Scatter Charts (2 variables)
 Histograms
Frequency Grade Distribution
distributions of 12
10
continuous variables

Frequency
8
6

Drawn without gaps 4

2
0 Grade
between the bars 59 69 79 89 99
 Constructing Histograms
Non-overlapping
intervals Grade Distribution
Intervals - generally 12
10
the same length

Frequency
8
6
Number of values in 4
2
each interval -class 0 Grade
59 69 79 89 99
frequency
Relative frequencies o
 XY Scatter Chart
Two variables
Abscent by Age
Variables: quantitative and
continuous. 20

15
Plot pairs - rectangular
Days Absent 10
coordinate system 5
Examine the relationship 0
0 10 20 30 40 50 60 70
between two variables
Age
 Line Chart
Similar to the scatter
1997 Monthly Sales
chart
Values of the 170
165
160
independent variable

Sales (x$10,000)
155
150
(shown on the 145
140
horizontal axis) can be 135
130
ranked values (i.e.. 125

Jan

June
Mar
Feb

May
Apr
they do not have to be Month

continuous variables).
Basic Principles for Constructing
All Plots
Data should stand out clearly from
background
The information should be clearly labeled
title
axes, bars, pie segments, etc. - include units that
are needed to interpret data
scale including starting points.
 Principles cont.
Source
No clutter
Minimize information or data on one graph.
Try several approaches
 Describing Data
Shape of the Distribution
Symmetry
Skewness
Modality: most frequently occurring value
Unimodal or bimodal or uniform
Right Skewed Left Skewed

Histogram Histogram

12 12
10 10
Frequency

Frequency
8 8
6 6
4 4
2 2
0 0
59 69 79 89 99 59 69 79 89 99
Grade Grade

Histogram

12
10
Frequency

8
6
4 Symmetrical
2
0
59 69 79 89 99
Grade
 Describing Data
Centrality
Spread
Extreme values
 Measures of Centrality
Mean
Median
Mode
 Mean
Most common measure
Extremely large values in a data set will
increase the value of the mean
Extremely low values will decrease it.
 Calculating the
Mean
T1 T2 T3
85 85 85
90 90 90
75 35 75
90 90 110
340 300 360 Sum
85 75 90 Mean
 Median
Central point .
Half of the data has a value than the median
Half of the data has a higher value than the
median
Not affected by extremely large or small
values
 Find the Median
85 90 75 92 95 Data

75 85 90 92 95 Sorted Data

Median is 90.
 Find the Median
95 90 92 85 Data

85 90 92 95 Sorted Data

Median:
(90 + 92)/2 = 91
Measures of Spread
 Range
Subtract the smallest value from the largest
Report the smallest and largest values.

85 90 75 92 95 Scores
Range: 75 to 95
or 20
 Variance/Standard Deviation
Average variation of the data values from
the mean of the values
Variance.
 The Empirical Rule
Symmetrical Data
At least:
68% of the data values are within one standard
deviation of the mean
90% of the data values are within two standard
deviation of the mean
99% of the data values are within three standard
deviations of the mean
 Tchybychefs Inequality
Skewed Data
At least:
75% of the data values are within two standard
deviation of the mean.
90% of the data values are within one standard
deviation of the mean.
 Measures of Relative Standing
Percentiles

Quartiles
 Quartiles
The lower quartile is the same as the 25th
percentile.
25% of the scores are lower and
75% of the scores are higher than the lower
quartile.
The upper quartile is the same as the 75th
percentile.
75% of the scores are lower and
 Correlation
Describes the strength of the relationship
between two (or more) variables

Pearson Product-moment Correlation

Coefficient - assumes continuous
quantitative data
 Relationship between Variables
Positive
Negative
No relationship.
 Interpreting Correlation
Coefficients.
0.20 to 0.35- show a slight relationship
(little value in practical prediction situations)
0.50 - crude group prediction
(Correlations this low do not suggest a good relationship)
0.65 to 0.85 - group predictions that are good
Over 0.85 - a close relationship between the two
variables.
 Even a high correlation
coefficient does not establish a
cause and effect
relationship!!!!!
 Coefficient of Determination
Square root of the correlation coefficient

Gives the percent of variation in the

dependent variable that is explained by the
independent variable.
Look at an XY scatter plot
 Least Square Line
Describe the relationship between the two
variables
Make predictions of the dependent variable
from the independent variable
 Positive Relationship
r will be a positive
8
7
number.
6
5
Y

4
3
2
1
0
0 2 4 6
X
 Negative Relationship
r will be a negative
8
7 number.
6
5
Y

4
3
2
1
0
0 2 4 6
X