Graphical Descriptive

Techniques I & II
PRESENTED BY: TOLOSA, JAYCEE REINIER B.
MEAM 601 RESEARCH STATISTICS
Introduction
Descriptive statistics is concerned with strategies for organizing,
summarizing, and presenting data in a clear and understandable
manner.

Data Statistics Information

Its methods make use of graphical techniques and numerical

descriptive measures (such as averages) to summarize and present
the data.
Population & Sample
Terminologies
Variable - some characteristic of a population or sample.
Values - the variable are the possible observations of the variable.
Data - the observed values of a variable.
Types Of Data And Information
Interval Data - real numbers such as heights, weights, incomes, and
distances. Are also called quantitative or numerical.
Example: incomes: P55,000 P20,000 P100,000
Nominal Data - labelled or named such as marital status, age group
and eye color. Are also called qualitative or categorical.
Example: marital status:
single, married, divorced, widowed
single = 1, married = 2, divorced = 3, widowed = 4
single = 7, married = 4, divorced = 13, widowed = 1
*(arithmetic operations don’t make any sense)
Types Of Data And Information
Ordinal Data - appear to be nominal, but the difference is that the
order of their values has meaning. Such as student evaluation and
tem ranking.
Example: student evaluation:
poor, fair, good, very good, and excellent
poor = 1, Fair = 2, Good = 3, Very good = 4, Excellent = 5
poor = 6, Fair = 18, Good = 23, Very good = 45, Excellent = 88
Calculations for Types of Data
Interval Data - all calculations are permitted
Nominal Data - no calculations are allowed
Ordinal Data - only calculations involving a ranking process are
allowed
Hierarchy of Data
Graphical & Tabular Techniques for
Nominal Data
The only allowable calculation is to count the frequency of each
value of the variable.
The data can be summarized in a table that presents the categories
and their counts called a frequency distribution.
A relative frequency distribution lists the categories and the
proportion with which each occurs.
Example 1: Energy Consumption in the
United States in 2012
The total energy consumption of the
United States from all sources in
2012 (latest data available at
publication). To make it easier to see
the details, the table measures the
energy in quadrillions of British
thermal units (BTUs).
Use an appropriate graphical
technique to depict these figures.
Xm02-02
Nominal Data (Frequency)
Bar Chart Energy Sources
Solar/photovoltaic
Wind
Geothermal
Waste
Biofuels
Wood derived fuels
Hydroelectric
Nuclear
Coal and coal products
Natural gas
Petroleum
0 5000 10000 15000 20000 25000 30000 35000
Nominal Data (Relative Frequency)
Pie Chart ≈
≈ Geothermal
Waste
Biofuels 0% 0% ≈
2% Wind
0%
Wood derived fuels ≈
2% Solar/photovoltaic
Hydroelectric 0%
3% Petroleum
37%
Nuclear
9%
Coal and coal products
ENERGY SOURCES
19%
Natural gas
28%
Describing Ordinal Data
No specific graphical techniques
Treat the data as if they were nominal and use the techniques
The bar charts should be arranged in ascending (or descending)
ordinal values
In pie charts, the wedges are typically arranged clockwise in
ascending or descending order.
Describing the Relationship between
Two Nominal Variables
To describe the relationship between two nominal variables, we
must remember that we are permitted only to determine the
frequency of the values.
As a first step we need to produce a cross-classification table, which
lists the frequency of each combination of the values of the two
variables
Example 2: Newspaper Readership
Survey
A major North American city has four competing newspapers: the
Globe and Mail (G&M), Post, Star, and Sun. To help design advertising
campaigns, the advertising managers of the newspapers need to know
which segments of the newspaper market are reading their papers. A
survey was conducted to analyze the relationship between
newspapers read and occupation.
A sample of newspaper readers was asked to report which newspaper
they read—Globe and Mail (1), Post (2), Star (3), Sun (4)—and indicate
whether they were blue-collar workers (1), white-collar workers (2), or
professionals (3).
Example 2…Sample Data
The responses are stored in Xm02-04 (data in book reference)
Sample data:
*Occupation
Xm02-04 1 = blue-collar workers
2 = white-collar workers
3 = professionals

*Newspaper
1 = Globe and Mail
2 = Post
3 = Star
4 = Sun

Determine whether the two nominal variables are related.

Example 2…Table
Cross-Classification Table of Row Relative Frequencies
Frequencies
Example 2…Relationship between Two
Nominal Variables
Interpret:
The graphs tell us the
same story as did the
table. The shapes of the
bar charts for occupations
2 and 3 (white collar and
professional) are very
similar. Both differ
considerably from the bar
chart for occupation 1
(blue collar).
Graphical Techniques to Describe a Set
of Interval Data
The most important of these graphical methods is the histogram
The histogram not only is a powerful graphical technique used to
summarize interval data but also is used to help explain an important
aspect of probability
Example 3: Analysis of Long-Distance
Telephone Bills
Following deregulation of telephone service, several new companies
were created to compete in the business of providing long-distance
telephone service. In almost all cases these companies competed on
price since the service each offered is similar. Pricing a service or
product in the face of stiff competition is very difficult. Factors to be
considered include supply, demand, price elasticity, and the actions
of competitors. Long-distance packages may employ per-minute
charges, a flat monthly rate, or some combination of the two.
Determining the appropriate rate structure is facilitated by acquiring
information about the behaviors of customers and in particular the
size of monthly long-distance bills.
Example 3…Data
Long-Distance
Telephone Bills

Xm03-01
Creating a Histogram
1) Collect the Data a1)

2) Create a frequency
distribution for the data…
How?
a) Determine the number of
classes to use… a1) or a2)

a2) Alternative, we could use Sturges’ formula:

Number of class intervals = 8 Number of class intervals = 1 + 3.3 log (n)
Creating a Histogram
b) Determine how large to make each class…
Look at the range of the data, that is,
Range = Largest Observation –Smallest Observation
Range = $119.63 –$0 = $119.63
Then each class width becomes:
# classes = 8 (number of class intervals)
Range ÷(# classes) = 119.63 ÷8 ≈ 15
Example 2…choose the number of class
We have chosen eight classes defined in such a way that each observation falls into one and only
one class. These classes are defined as follows:
Example 2…Interpret
Shapes of Histograms
Symmetry
A histogram is said to be symmetric if, when we draw a vertical line
down the center of the histogram, the two sides are identical in
shape and size:
Shapes of Histograms
A skewed histogram is one with a long tail extending to either the
right or the left:

Positively Skewed Negative Skewed

Shapes of Histograms
A unimodal A bimodal histogram is A unimodal histogram
histogram is one one with two peaks, is one with a single
with a single peak not necessarily equal peak
in height
Stem & Leaf Display
One of the drawbacks of the histogram is that we lose potentially
useful information by classifying the observations.
Stem & Leaf Display is a method that to some extent overcomes loss
Split each observation into two parts, a stem and a leaf: Stem Leaf
e.g. Observation value: 42.19 42 19
We could split it at the decimal point: 4 2
Or split it at the “tens” position (while rounding to the nearest
integer in the “ones” position)
Stem & Leaf Display
Continue this process for all the observations base from example 3
Histogram and Stem & Leaf

Compare the overall shapes of the figures…

Ogive
a graph of a cumulative frequency distribution
We create an ogive in three steps…
First, from the frequency distribution created earlier, calculate relative
frequencies:
Relative Frequency = # of observations in a class
Total # of observations
Second, calculate cumulative relative frequencies by adding the current
class’ relative frequency to the previous class’ cumulative relative
frequency.
Ogive
>
*the example
is in greater
than cf

Cf >
Ogive
Third, graph the cumulative
relative frequencies
Describing Time Series Data
Cross-sectional data - observations measured at the same point in
time
Time-series data - Observations measured at successive points in
time
Time-series data graphed on a line chart, which plots the value of the
variable on the vertical axis against the time periods on the
horizontal axis.
Example 4: Price of Gasoline
We recorded the monthly
average retail price of gasoline
since 1976.
Xm03-05 (file in book reference)
…… .. ………
Draw a line chart to describe
these data and briefly describe
the results.
Example 4…Line Graph
Example 4…Interpret
The price of gasoline rose from about $.60 to over $1.00 in the late
1970s (months 1 to 49)
fluctuated between $.90 and $1.50 until 2000 (months 49 to 313),
then rose rapidly to month 396, before dropping sharply.
It started to rise again until the last month listed.
Example 5: Price of Gasoline in 1982-84
Constant Dollars
Xm03-06 (file in book reference)
Remove the effect of inflation in
Example 4 to
determine whether gasoline
….. .. …… ….. ….
prices are higher than they have
been in the past after removing
the effect of inflation.
Example 5…Line Graph
Example 5…Interpret
Using constant 1982–1984 dollars, we can see that the average price
of a gallon of gasoline hit its peak in the middle of 2008 (month 385).
From there, it dropped rapidly and then rose more or less steadily
until the end of 2012.
At that point, the adjusted price was about the same as the adjusted
price in 1978 (month 49).
Graphing the Relationship Between Two
Interval Variables
To explore the relationship between two interval variables, use
scatter diagram
Scatter diagram - statistical techniques used to describe the
relationship between variables such as unemployment rates and
inflation.
The independent variable is labeled X and is usually placed on the
horizontal axis, while the other, dependent variable, Y, is mapped to
the vertical axis.
Example 6: Analyzing the Relationship
between Price and Size of House
A real estate agent wanted to know to what
extent the selling price of a home is related to
its size.
To acquire this information, he took a sample
of 12 homes that had recently sold, recording
the price in thousands of dollars and the size in
square feet.
These data are listed in the accompanying
table. Use a graphical technique to describe the
relationship between size and price.
Example 6…Scatter Diagram
The scatter diagram reveals that, in general, the greater the size of
the house, the greater the price. However, there are other variables
that determine price. Further analysis may reveal what these other
variables are.
Patterns of Scatter Diagrams
The two concepts that are being looked for are linearity and direction
Summary
Factors That Identify When to Use Factors that Identify When to Use a Cross-
Frequency and Relative Frequency Tables, classification Table
Bar and Pie Charts
1. Objective: Describe the relationship
1. Objective: Describe a single set of data. between two variables.
2. Data type: Nominal 2. Data type: Nominal
Factors That Identify When to Use a Factors that Identify When to Use a
Histogram, Ogive, or Stem-and-Leaf Scatter Diagram
Display
1. Objective: Describe the relationship
1. Objective: Describe a single set of data. between two variables.
2. Data type: Interval 2. Data type: Interval
Summary
Interval Data Nominal Data
Single Set of Data Histogram Frequency and
Relative Frequency
Tables, Bar and Pie
Charts
Relationship Scatter Diagram Cross-classification
Between Table, Bar Charts
Two Variables
Reference
Book:
Statistics for Management and Economics
10e
Gerald Keller
Index
Example 1:
Creating a Bar Chart: https://www.youtube.com/watch?v=gC9e6nwZgMQ
Creating a Pie Chart: https://www.youtube.com/watch?v=rSfzzgskpcc