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Lecture Slides for Chapter 2 Business Statistics
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10/04/2015
Chapter 2 Data Presentation
Outline
Organize data into a frequency distribution.
Graphical presentation: Histogram, frequency
polygon, cumulative frequency polygon.
Graphical techniques: line chart, bar chart and
pie chart
Slide number 2
Chapter 2 Data Presentation
Recommended Reading
Customised Text, Adapted from ‘Statistical Techniques in
Business & Economics by Lind, Marchal 16th Edition’
McGraw Hill
Chapter 2
Page 17 - 49
10/04/2015Last Update: April 2007
Slide number 310/04/2015
Frequency Distribution
A grouping of data
into mutually
exclusive classes
It shows the number
of observations in
each class
Slide number 410/04/2015
Frequency Distribution - Terms
Class limits:
Upper Limit: The highest possible value in a class
Lower limit: The lowest possible value in a class
Slide number 510/04/2015
Frequency Distribution - Terms
Class midpoint:
A point that divides a class into two equal parts. This is the average of the upper and lower class limits.
Class frequency:
The number of observations in each class.
Class interval: (Class Width)
The class interval is obtained by subtracting the
lower limit of a class from the lower limit of the
next class.
Slide number 610/04/2015
Frequency Distribution – terms
Class
(amount sold
‘000 kg
Frequency (f) mid-point
2.0 - up to 3.0 1
3.0 - up to 4.0 0 3.5
4.0 - up to 5.0 2 4.5
5.0 - up to 6.0 8 5.5
6.0 - up to 7.0 5 6.5
7.0 - up to 8.0 4 7.5
Total 20
Class
Interval:
3.0-2.0
= 1
(3+2)/2 = 2.5
EXAMPLE 1: Amount of rice sold (in ‘000 kg)
Slide number 710/04/2015
Steps
Decide on the number of classes
Determine the class interval
Set the individual class limits
Tally the observations into the classes
Count the number of items in each class
Constructing a Frequency Distribution
Slide number 810/04/2015
EXAMPLE 2
Dr. Tillman is Dean of the School of Business Socastee
University. He wishes to prepare a report showing the number of hours per week students spend on studying. He selects a random sample of 30 students and determines the number of hours each student studied last week.
15.0, 23.7, 19.7, 15.4, 18.3, 23.0, 14.2, 20.8, 13.5, 20.7, 17.4, 18.6, 12.9, 20.3, 13.7, 21.4, 18.3, 29.8, 17.1, 18.9, 10.3, 26.1, 15.7, 14.0, 17.8, 33.8, 23.2, 12.9, 27.1, 16.6.
Organize these data into a frequency distribution.
Slide number 910/04/2015
Step 1: Decide on the number of classes 2k > n
where k = number of classes
n = number of observations
oThere are 30 observations so n=30.
o2 raised to the 5th power is 32.
i.e. 25 = 32
oTherefore, we should have at least 5
classes, i.e., k=5.
Construction a Frequency Distribution
Slide number 1010/04/2015
Step 2: Determine the class interval
Construction a Frequency Distribution
classes ofNumber
ue)Lowest val - lueHighest va(i
.
57.45
10.3 - 3.83i
Slide number 1110/04/2015
Step 3: Set the individual class limits
Construction a Frequency Distribution
Ensure that the lower limit of the first class is
smaller or equal than the smallest value and
the upper limit of the last class is larger or
equal to the largest value
Set the lower limit of the first class at
10 hours, giving a total of 5 classes.
Slide number 1210/04/2015
EXAMPLE 10 continued
Hours studying Frequency, f
10 up to
up to
up to 25
25 up to 30
30 up to 35
15
20
15
20
Interval
= 5
Step 3: Set the individual class limits
Slide number 1310/04/2015
EXAMPLE 10 continued
Hours studying Frequency, f
10 up to 15 7
15 up to 20 12
20 up to 25 7
25 up to 30 3
30 up to 35 1
Step 4 & 5: Tally and Count the numbers in each class
Slide number 1410/04/2015
Constructing a Frequency Distribution
Preferably between 5 – 15 classes
If possible, the classes interval should be the same for all classes
The classes must be mutually exclusive, i.e. avoid overlapping classes. Each data point must fall in only one class.
The classes must be all inclusive, i.e. the classes must provide a place to record every value in the data set.
Preferably no open-ended classes.
open-ended classes: classes without lower or upper limit example: below 7.5 ; above 37.5
Slide number 1510/04/2015
A relative frequency distribution
shows the percent of observations in
each class.
Relative Frequency
Slide number 1610/04/2015
Hours f Relative
Frequency
10 up to 15 7
15 up to 20 12 12/30=.400
20 up to 25 7 7/30=.2333
25 up to 30 3 3/30=.1000
30 up to 35 1 1/30=.0333
TOTAL 30 30/30=1
Relative Frequency Distribution
Relative Frequency = freq / freq
7/30=.2333
Slide number 1710/04/2015
Graphical Presentation of a Frequency
Distribution
Histograms
Classes marked on the horizontal axis
Frequency marked on the vertical axis
Frequencies of each class are
represented by the height of the bars
The bars are adjacent to each other
Slide number 1810/04/2015
Histogram for Hours Spent Studying
0
2
4
6
8
10
12
14
12.5 17.5 22.5 27.5 32.5
Fre
qu
en
cy
Hours spent studying
EXAMPLE 3
Slide number 1910/04/2015
Graphical Presentation of a Frequency
Distribution
Frequency Polygon
mid-point of the classes are marked on
the horizontal axis
Frequency marked on the vertical axis
Line segments connect the points that
represent the frequencies of their
respective classes.
Slide number 2010/04/2015
Frequency Polygon for Hours Spent Studying
0
2
4
6
8
10
12
14
7.5 12.5 17.5 22.5 27.5 32.5
Fre
qu
en
cy
Hours spent studying
EXAMPLE 4
Slide number 2110/04/2015
Cumulative Frequency
A cumulative frequency distribution is
used to determine how many or what
proportion of the data values are below
or above a certain value.
The cumulative frequency of a particular
class is found by adding the frequency of
that class to the cumulative frequency of
the previous class.
Slide number 2210/04/2015
Hours f Cumulative
Frequency
(cf)
10 up to 15 7
15 up to 20 12
20 up to 25 7
25 up to 30 3
30 up to 35 1
TOTAL 30
Cumulative Frequency Distribution
7
19
29
26+
30
EXAMPLE 5
Slide number 2310/04/2015
Constructing a Cumulative Frequency
Polygon (Ogive)
• Scale the upper limit of the classes on the
X-axis
• The cumulative frequency distribution is
marked on the Y-axis
• The polygon cross the X-axis at the lower limit
of the first class
Slide number 2410/04/2015Last Update: April 2007
Constructing a Cumulative Frequency
Polygon
x-axis y-axisFirst limit with
Cum Freq = 0
Hours f Cumulative
Frequency
(cf)
10 up to 15 7 7
15 up to 20 12 19
20 up to 25 7 26
25 up to 30 3 29
30 up to 35 1 30
TOTAL 30
Slide number 2510/04/2015
Cumulative Frequency Polygon (OGIVE) For Hours Studying
About students spent less than 20 hours studying.19
0
7
19
2629 30 30
0
5
10
15
20
25
30
35
10 15 20 25 30 35 35
Hours Spent Studying
Cu
mu
late
d F
req
ue
nc
y
Slide number 2610/04/2015
Cumulative Frequency Polygon For Hours Studying
About 86.6% of the 30 students studied for less than _______ hours25
86.6% x 30 = 26 students
0
7
19
2629 30 30
0
5
10
15
20
25
30
35
10 15 20 25 30 35 35
Hours Spent Studying
Cu
mu
late
d F
req
uen
cy
Slide number 2710/04/2015
Cumulative Frequency Polygon For Hours Studying
About students spent more than 25 hours studying.4
so we have 30 – 26 = 4 students spent more than
25 hours
Explanation: 26 students spent less than 25 hours,
0
7
19
2629 30 30
0
5
10
15
20
25
30
35
10 15 20 25 30 35 35
Hours Spent Studying
Cu
mu
late
d F
req
ue
nc
y
Slide number 2810/04/2015
Other Graphical Presentation of Data
Line Graph
used to show the change or trend in a variable over time
Bar Chart
depicts both the qualitative and quantitative data
Pie Chart
is useful for displaying a relative frequency distribution. A circle is divided proportionally to the relative frequency and portions of the circle are allocated for the different groups.
Slide number 2910/04/2015
Year Males Females
1992 30.5 32.9
1993 30.8 33.2
1994 31.1 33.5
1995 31.4 33.8
1996 31.6 34.0
1997 31.9 34.3
1998 32.2 34.6
1999 32.5 34.9
2000 32.8 35.2
2001 33.2 35.5
2002 33.5 35.8
Line Graph – EXAMPLE 6
27
28
29
30
31
32
33
34
35
36
37
Med
ian A
ge
U.S. median age by gender
Males
Females
Slide number 3010/04/2015
A bar chart for the number of unemployed per
100,000 population for selected cities during 2001
City No. of unemployed per
100,000 population
Atlanta, GA 7300
Boston, MA 5400
Chicago, IL 6700
Los Angeles, CA 8900
New York, NY 8200
Washington, D.C. 8900
Bar Chart – EXAMPLE 7
7300
5400
6700
89008200
8900
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1 2 3 4 5 6
# u
ne
mp
loye
d/1
00
,00
0
Cities
Atlanta
Boston
Chicago
Los Angeles
New York
Washington
Slide number 3110/04/2015
46%
24%
18%
7% 5%
# of runners
Nike Adidas Reebok Asics Other
A sample of 200 runners were asked to indicate their favorite
type of running shoe. Draw a pie chart based on the following
information.
Type of shoe # of runners % of total
Nike 92 46.0
Adidas 49 24.5
Reebok 37 18.5
Asics 13 6.5
Other 9 4.5
Pie Chart – EXAMPLE 8
Slide number 32
Ethical Visual
10/04/2015Last Update: April 2007
Slide number 33
Charts Examples
10/04/2015Last Update: April 2007