DESCRIBING

DATA
STATISTIKA
AKUNTANSI
DESCRIBING DATA
• Frequency Tables, Frequency Distributions, And Graphic
Presentation
• Numerical Measures
• Displaying And Exploring Data
LEARNING OBJECTIVES
Frequency Tables, Frequency Distributions, And Graphic
Presentation
• Summarize qualitative variables with frequency and relative
frequency tables.
• Display a frequency table using a bar or pie chart.
• Summarize quantitative variables with frequency and
relative frequency distributions.
• Display a frequency distribution using a histogram or
frequency polygon.
CONSTRUCTING FREQUENCY
TABLES
• Descriptive statistics organize data to show the general
pattern of the data, to identify where values tend to
concentrate, and to expose extreme or unusual data values.
• FREQUENCY TABLE is A grouping of qualitative data into
mutually exclusive and collectively exhaustive classes
showing the number of observations in each class.
• You can convert class frequencies 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 frequency and the total number of observations.
EXAMPLE of FREQUENCY
TABLES
• Suppose Ms. Ball wants to summarize last month’s sales by location.
• The first step is to sort the vehicles sold last month according to their
location and then tally, or count, the number sold at each location of the
four locations: Tionesta, Olean, Sheffield, or Kane.
• The four locations are used to develop a frequency table with four
mutually exclusive (distinctive) classes.
• Mutually exclusive classes means that a particular vehicle can be
assigned to only one class. In addition, the frequency table must be
collectively exhaustive.
• That is every vehicle sold last month is accounted for in the table. If
every vehicle is included in the frequency table, the table will be
collectively exhaustive and the total number of vehicles will be 180.
EXAMPLE of FREQUENCY
TABLES
GRAPHIC PRESENTATION OF
QUALITATIVE DATA (1)
• The most common graphic form to present a qualitative
variable is a bar chart.
• BAR CHART A graph that shows qualitative classes on the
horizontal axis and the class frequencies on the vertical axis.
The class frequencies are proportional to the heights of the
bars.
• A distinguishing feature of a bar chart is there is distance or
a gap between the bars.
• That is, because the variable of interest is qualitative, the
bars are not adjacent to each other.
EXAMPLE of BAR CHART
GRAPHIC PRESENTATION OF
QUALITATIVE DATA (2)
• Another useful type of chart for depicting qualitative information
is a pie chart.
• PIE CHART A chart that shows the proportion or percentage that
each class represents of the total number of frequencies.
CONSTRUCTING FREQUENCY
DISTRIBUTIONS and RELATIVE
FREQUENCY DISTRIBUTION
• FREQUENCY DISTRIBUTION is a grouping of quantitative data into
mutually exclusive and collectively exhaustive classes showing the
number of observations in each class.
• We admit that arranging the information on profits into a
frequency distribution does result in the loss of some detailed
information.
• To convert a frequency distribution to a relative frequency
distribution, each of the class frequencies is divided by the total
number of observations.
CONSTRUCTING FREQUENCY
DISTRIBUTIONS
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.”
• This guide suggests you select the smallest number (k) for the
number of classes such that 2k (in words, 2 raised to the power of
k) is greater than the number of observations (n).
STEP 2: Determine the class interval.
• Generally, the class interval is the same for all classes.
• The classes all taken together must cover at least the distance
from the minimum value in the data up to the maximum value.
maximum value  minimum value
i
k
CONSTRUCTING FREQUENCY
DISTRIBUTIONS
STEP 3: Set the individual class limits.
• State clear class limits so you can put each observation into only
one category.
• This means you must avoid overlapping or unclear class limits.
Because we always round the class interval up to get a convenient
class size, we cover a larger than necessary range.
• A guideline is to make the lower limit of the first class a multiple of
the class interval.
• Sometimes this is not possible, but the lower limit should at least
be rounded.
STEP 4: Tally the vehicle profit into the classes and determine the
number of observations in each class.
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (1)
• Ms. Kathryn Ball of the Applewood Auto Group wants to summarize the
quantitative variable profit with a frequency distribution and display the
distribution with charts and graphs.
• With this information, Ms. Ball can easily answer the following
questions:
• What is the typical profit on each sale?
• What is the largest or maximum profit on any sale?
• What is the smallest or minimum profit on any sale?
• Around what value do the profits tend to cluster?
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (2)
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (3)
STEP 1:
• there were 180 vehicles sold. So n = 180.
• If we try k = 7, which means we would use 7 classes, 27 = 128,
which is less than 180.
• Hence, 7 is too few classes. If we let k = 8, then 28 = 256, which is
greater than 180.
• So the recommended number of classes is 8.
STEP 2:
• the minimum value is $294 and the maximum value is $3,292. If
we need 8 classes, the interval should be:
$3,292  $294
i  $374.75 $400
8
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (4)
STEP 3:
• we will generally use the format $1,300 up to $1,400 and
$1,400 up to $1,500 and so on.
• With this format, it is clear that $1,399 goes into the first
class and $1,400 in the second.
• Classes such as “$1,300–$1,400” and “$1,400–$1,500”
should not be used because it is not clear whether the
value $1,400 is in the first or second class.
• 8 classes with an interval of $400 results in a range of
8($400) = $3,200.
• The actual range is $2,998, found by ($3,292 − $294).
Comparing that value to $3,200, we have an excess of
$202.
• Because we need to cover only the range (Maximum −
Minimum), it is natural to put approximately equal
amounts of the excess in each of the two tails.
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (5)
STEP 4:
EXAMPLE of CONSTRUCTING
FREQUENCY DISTRIBUTIONS (6)
We can summarize the profits of the vehicles for the Applewood Auto Group. Observe the
following:
1. The profits from vehicle sales range between $200 and $3,400.
2. The vehicle profits are classified using a class interval of $400. The class interval is
determined by subtracting consecutive lower or upper class limits. For example, the lower
limit of the first class is $200, and the lower limit of the second class is $600. The
difference is the class interval of $400.
3. The profits are concentrated between $1,000 and $3,000. The profit on 157 vehicles, or
87%, was within this range.
4. For each class, we can determine the typical profit or class midpoint. It is halfway
between the lower or upper limits of two consecutive classes. It is computed by adding
the lower or upper limits of consecutive classes and dividing by 2. The midpoint best
represents, or is typical of, the profits of the vehicles in that class. Applewood sold 8
vehicles with a typical profit of $400.
5. The largest concentration, or highest frequency, of vehicles sold is in the $1,800 up to
$2,200 class. There are 45 vehicles in this class. The class midpoint is $2,000. So we say
that the typical profit in the class with the highest frequency is $2,000.
EXAMPLE of RELATIVE
FREQUENCY DISTRIBUTION
GRAPHIC PRESENTATION OF a
DISTRIBUTION
• Sales managers, stock analysts, hospital administrators, and other busy
executives often need a quick picture of the distributions of sales, stock prices, or
hospital costs.
• These distributions can often be depicted by the use of charts and graphs.
• There are several methods for graphically portraying a frequency distribution.
• A histogram portrays the frequencies in the form of a rectangle or bar for
each class. The height of the rectangles is proportional to the class
frequencies.
• A frequency polygon consists of line segments connecting the points formed
by the intersection of the class midpoint and the class frequency.
• A graph of a cumulative frequency distribution shows the number of
observations less than a given value.
• A graph of a cumulative relative frequency distribution shows the percent of
observations less than a given value.
HISTOGRAM
• A histogram for a frequency distribution based on quantitative data is similar to
the 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. However, there
is one important difference based on the nature of the data.
• Quantitative data are usually measured using scales that are continuous, not
discrete.
• Therefore, the horizontal axis represents all possible values, and the bars are
drawn adjacent to each other to show the continuous nature of the data.
• Thus, the histogram provides an easily interpreted visual representation of a
frequency distribution.
• We should also point out that we would have made the same observations and
the shape of the histogram would have been the same had we used a relative
frequency distribution instead of the actual frequencies.
EXAMPLE of HISTOGRAM
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.
• The midpoint of each class is scaled on the X-axis and the class
frequencies on the Y-axis.
• Recall that the class midpoint is the value at the center of a class and
represents the typical values in that class.
• The class frequency is the number of observations in a particular
class.
EXAMPLE of FREQUENCY
POLYGON
CUMULATIVE DISTRIBUTIONS
CUMULATIVE FREQUENCY
POLYGON