You are on page 1of 64

Statistics for Management Unit 3

Unit 3 Classification, Tabulation and


Presentation of Data
Structure:
3.1 Introduction
Objectives
Relevance
Statistics in practise
3.2 Meaning of Classification
Functions of classification
Requisites of a good classification
Types of classification
Methods of classification
3.3 Tabulation
Basic difference between classification and tabulation
Parts of a table
Types of tables
3.4 Frequency and Frequency Distribution
Series of individual observation
Discrete frequency distribution
Continuous frequency distribution
Technical terms used in formulation of frequency distribution
Constructing a frequency distribution
Tally marks
Derived frequency distributions
Cumulative frequency distribution
Bivariate and Multivariate frequency distribution
3.5 Presentation of Data
Diagrammatic and graphic representation
General rules for drawing the diagrams
Types of diagrams
Choice or selection of diagram
3.6 Graphical Presentation
Histogram
Frequency polygon
Frequency curve
Ogives
3.7 Summary

Sikkim Manipal University Page No. 59


Statistics for Management Unit 3

3.8 Glossary
3.9 Terminal Questions
3.10 Answers
3.11 Case Study

3.1 Introduction
In the previous unit, statistical survey, we have studied about surveys,
different methods of collecting the data and analysing the numerical data. In
this unit, we will learn about the classification, tabulation and presentation of
data. We will know about the simplification of collected data and also know
about some methods for graphical summarisation of data that reveals
certain characteristic.
Collected data in the raw form would be voluminous and non-
comprehensible. Therefore, it should be condensed and simplified for better
understanding and usefulness.
Classification is the first stage in simplification. It can be defined as a
systematic grouping of the units according to their common characteristics.
Each of the group is called class.
For example, in a survey of industrial workers of a particular industry,
workers can be classified as unskilled, semi-skilled and skilled, each of
which form a class.
Objectives:
After studying this unit, you should be able to:
 describe methods of classification
 identify the parts of a table
 describe the functions of tabulation
 calculate the frequency and frequency distribution for the data
 illustrate the numerical data as a graphical representation
3.1.1 Relevance
A picture is equal to a thousand words. The same is true about graphs and
charts that are used to present data in a form which can be easily
comprehended. Graphs and charts reflect our performance. There is
sufficient scope of making effective use of graphs and charts for managerial
functions.

Sikkim Manipal University Page No. 60


Statistics for Management Unit 3

3.1.2 Statistics in practise


Case-let: Colgate-Palmolive Company
The Colgate-Palmolive Company started as a small soap and candle shop
in New York City in1806.Today, Colgate-Palmolive is a $9 billion company
whose products can be found in more than 200 countries and territories
around the world. While best known for its brand names of Colgate-
Palmolive, Ajax, and Fax the company also markets Mennen Hill’s science
diet and Hills’s prescription diet products.
The Colgate–Palmolive Company use statistics in its quality assurance
program for home laundry detergent products. One concern is customer
satisfaction with the quantity of detergent in a carton. Every carton in each
size category is filled with the same amount of detergent by weight, but the
volume of detergent is affected by the density of the detergent powder. For
instance, if the powder density is on the heavy side, a smaller volume of
detergent is needed to reach the cartoon’s specified weight. As a result, the
carton may appear to be under filled when opened by the consumer.
To control the problem of heavy detergent powder, limits are placed on the
acceptable range of powder density. Statistical samples are taken
periodically, and the density of each powder sample is measured. Data
summaries are then provided for operating personnel, so that corrective
action can be taken if necessary to keep the density within the desired
quality specifications.
A frequency distribution for the densities of 150 samples taken over a one-
week period and a bar diagram are shown in the accompanying table and
figure. Density levels above 0.40 are unacceptably high. The frequency
distribution show that the operations are meeting its quality guidelines with
all of the densities less than or equal to 0.40. Managers viewing these
statistical summaries would be pleased with the quality of the detergent
production process.
Frequency distribution of density data
Table 3.1: Frequency distribution
Density Frequency
0.29 30
0.31 75
0.33 32
0.35 09
0.37 03
0.39 01
Total 150
Sikkim Manipal University Page No. 61
Statistics for Management Unit 3

80
70
60
50 3-D Column 1
40
30
20
10
0
0.29 0.31 0.33 0.35 0.37 0.39

Fig. 3.1: Frequency versus Density

3.2 Meaning of Classification


Classification is a process of arranging things or data in groups or classes
according to their resemblances and affinities
Definition of classification
Classification is the process of arranging data into sequences and groups
according to their common characteristics or separating them into different
but related parts - Secrist
The process of grouping large number of individual facts and observations,
on the basis of similarity among the items is called classification - Stockton
and Clark
3.2.1 Functions of classification
Classification of data performs many functions which are as follows:
 It condenses the bulk data
 It simplifies the data and makes the data more comprehensible
 It facilitates comparison of characteristics
 It renders the data ready for any statistical analysis
3.2.2 Requisites of a good classification
A good classification should be:
 Unambiguous – It should not lead to any confusion.
 Exhaustive – Every unit should be allotted to one and only one class.

Sikkim Manipal University Page No. 62


Statistics for Management Unit 3

 Mutually exclusive – There should not be any overlapping.


 Flexible – It should be capable of adjusting to changing situations.
 Suitable – It should be suitable to the objectives of the survey.
 Stable – It should remain stable throughout the investigation.
 Homogeneous – There should be similar units in the same class.
 Revealing – It should bring out essential features of the collected data.
3.2.3 Types of classification
Modes/types of classification refer to the class categories into which the
data could be sorted out and tabulated. These categories depend on the
nature of data and purpose for which data is being sought.
a) Geographical (i.e. on the basis of area or region wise)
b) Chronological (on the basis of temporal/historical, i.e. with respect to
time)
c) Qualitative (on the basis of character/attributes)
d) Numerical, quantitative (on the basis of magnitude)
a) Geographical classification – In geographical classification, the
classification is based on the geographical regions.
Example 1: Sales of the company (in million rupees) (region–wise)
Table 3.2 depicts the sales of a company in various regions.
Table 3.2: Region Wise Sales in Million Rupees

Region Sales
North 285
South 300
East 185
West 235

b) Chronological classification – If the statistical data are classified


according to the time of its occurrence, the type of classification is called
chronological classification.
Example 2: Table 3.3 depicts the sales reported by a departmental store
from January to August.

Sikkim Manipal University Page No. 63


Statistics for Management Unit 3

Table 3.3: Sales of a Departmental Store


Sales
Month
(Rs.) in lakhs
January 22
February 26
March 32
April 25
May 27
June 29
July 30
August 30

c) Qualitative classification – In qualitative classifications, the data are


classified according to the presence or absence of attributes in given units.
Thus, the classification is based on some quality characteristics/attributes.
Example 3: Sex, literacy, education, class grade, etc.
Further, it may be classified as:
 Simple classification
 Manifold classification
Simple classification – If the classification is done into only two classes
then, classification is known as simple classification.
Manifold classification – When more than one attribute is studied, it is
called manifold classification.
Example 4
 Classification of Population according to sex- male/female, this type of
classification is called simple classification.
 Population may be classified as rural or urban. This may be classified as
male or female and still further as educated or uneducated, this type of
classification is called manifold classification
d) Quantitative classification – In quantitative classification, the
classification is based on quantitative measurements of some
characteristics, such as age, marks, income, production, sales, etc. The

Sikkim Manipal University Page No. 64


Statistics for Management Unit 3

quantitative phenomenon studied is known as variable and hence this


classification is also called as classification by variable.
Example 5: Table 3.4 depicts the marks obtained by students for a 50
marks test.
Table 3.4: Variable versus Frequency
Marks No. of Students
0 – 10 5
10 – 20 7
20 – 30 10
30 – 40 25
40 – 50 3
Total Students = 50

In this classification, marks obtained by students are variable and number of


students in each class represents the frequency.
3.2.4 Methods of classification
There are three methods of classification. They are as follows:
a. One-way classification – Classification done according to a single
attribute or variable is known as one way classification.

Example 6
Figure 3.2 depicts the number of students who has secured more than
60% in various sub-modules of statistics. This can be classified using
one-way classification method.

Fig. 3.2: One-way Classification

b. Two-way classification – Classification done according to two attributes


or variables is known as two-way classification.

Sikkim Manipal University Page No. 65


Statistics for Management Unit 3

Example 7
Figure 3.3 depicts the classification of students according to gender, who
has secured more than 60% in respective sub-modules of statistics. In
the sub-module titled ‘Basic Concepts’, ten students got more than 60%.
Out of ten students, four are males and six are females.

Fig. 3.3: Two-way Classification

c. Manifold classification – Classification done according to more than two


attributes or variables is known as manifold classification.

Example 8
Figure 3.4 depicts the classification of employees according to skill, sex
and education.

Fig. 3.4: Manifold classification example

Sikkim Manipal University Page No. 66


Statistics for Management Unit 3

Example 9:
Figure 3.5 depicts manifold classification of population.

Fig. 3.5: Manifold Classification

Example 10:
The below Table 3.5 depicts the educational qualification of hotel
employees
Table 3.5: Manifold Classification of Males and Females Based on
Qualification

Yes No Total
Educational
M F M F M F
Qualification
MBA Degree 12 9 3 6 15 15
B.Sc. H and HA 15 15 0 0 15 15

Self Assessment Questions


1. Classification is a systematic __________ of the units according to
their ____________ __________.
2. Classification reduces _________ of the data.
3. Classification of data that are non-measurable is known as _______.

Sikkim Manipal University Page No. 67


Statistics for Management Unit 3

4. Classification done according to two attributes or variables is


_________.
5. Manifold classification involve more than _________ variables.
6. Data arranged according to time of occurrence is known as _______.
7. Geographical classification means classification of data according to:
i) Location ii) Time
iii) Attributes iv) Class intervals
8. Classification is a process of arranging the data into:
i) Different columns ii) Different rows
iii) Different rows and columns
iv) Groups of related facts in different classes
9. The data that can be classified on the basis of time is:
i) Geographical ii) Chronological
iii) Qualitative iv) Quantitative

3.3 Tabulation
Tabulation follows classification. It is a logical or systematic listing of related
data in rows and columns. The row of a table represents the horizontal
arrangement of data and column represents the vertical arrangement of
data. The presentation of data in tables should be simple, systematic and
unambiguous.
The objectives of tabulation are to:
 Simplify complex data
 Highlight important characteristics
 Present data in minimum space
 Facilitate comparison
 Bring out trends and tendencies
 Facilitate further analysis
3.3.1 Basic differences between classification and tabulation
Table 3.6 depicts the few differences between classification and tabulation.
Table 3.6: Differences between Classification and Tabulation
Classification Tabulation
It is the basis for tabulation It is the basis for further analysis
It is the basis for simplification It is the basis for presentation
Data is divided into groups and sub-
Data is listed according to a logical
groups on the basis of similarities
sequence of related characteristics
and dissimilarities.

Sikkim Manipal University Page No. 68


Statistics for Management Unit 3

3.3.2 Parts of a table


In this section, you will study the parts of a table, which will help you in
creating accurate tables with the data given. Table 3.7 and figure 3.6 depict
the parts of a table along with the explanation of each tab (tabs from
1 to 10).

1 2

Table 3.7: Percentage of P.G. Employees based on their Age and


Departments
9
5 (Age in Years) 3
Age
Departments 40 and
20 – 40 4
above
Accounts 2.564 1.282
6 Finance 2.564 1.795
Personal 3.846 1.282
Production 2.564 2.051 7
Marketing 1.282 1.795
8
Total 12.920 8.205

10

Source: ………..

Fig. 3.6: Parts of a Table

Tab 1: Table number


Table number is to identify the table for reference. When there are many
tables in an analysis, then table numbers are helpful in identifying the tables.

Sikkim Manipal University Page No. 69


Statistics for Management Unit 3

Tab 2: Title
Title indicates the scope and the nature of contents in a concise form. In
other words, title of a table gives information about the data contained in the
body of the table. Title should not be lengthy.
Tab 3 and Tab 4: Captions
Captions are the headings and subheadings describing the data present in
the columns.
Tab 5 and Tab 6: Stubs
Stubs are the headings and subheadings of rows.
Tab 7: Body of the table
Body of the table contains numerical information.
Tab 8: Ruling and spacing
Ruling and spacing separate columns and rows. However, totals are
separated from main body by thick lines.
Tab 9: Head note
Head note is given below the title of the table to indicate the units of
measurement of the data and is enclosed in brackets.
Tab 10: Source note
Source note indicates the source from which data is taken. The source note
related to table is placed at the bottom on the left hand corner.
3.3.3 Types of tables
Tables are classified into three types. They are on the basis of:
a. Purpose of investigation
b. The nature of presented figures
c. Construction
a. Purpose of investigation: Tables classified under this classification are
of two types. They are:
 General purpose table – General purpose table or reference table
facilitates easy reference to the collected data. They are formed without
specific objective, but can be used for any specific purpose. They
contain large mass of data. For example: census.
 Specific purpose table – Specific purpose table or text table or
summary table deals with specific problems. They are smaller in size

Sikkim Manipal University Page No. 70


Statistics for Management Unit 3

and they highlight relationship between characteristics. For example:


cost of living indices.
b. The nature of presented figures
Tables classified under this type are of two types. They are:
 Primary table – The primary tables contain data in the form in which it
were originally collected. Table 3.8 is a primary table.
 Derived table – The derived tables represent figures like totals,
averages, ratios, etc, which are derived from original data. Table 3.9 is a
derived table derived from table 3.8.
Table 3.8: Distribution of Employees According to Age and Educational Level
in Various Departments
Age
20 – 40 40 and Above
Depart- A C A
B C Total
ments B
Under Post Under
Gra- Post
Gra- Gra- Gra- Graduate
duate Graduate
duate duate duate
Accounts 10 40 10 10 15 5 90
Finance 10 30 10 12 14 7 83
Personal 15 25 10 10 14 5 79
Production 10 30 10 8 12 6 76
Marketing 5 25 10 0 15 7 62
Total 50 150 50 40 70 30 390

Table 3.9: Percentage of P.G. Employees’ Age Group According to


Departments
Age
Departments
20 – 40 40 and above
Accounts 24 21.429
Finance 20 23.571
Personal 20 20.714
Production 20 18.571
Marketing 16 15.714
Total 100 100

Sikkim Manipal University Page No. 71


Statistics for Management Unit 3

c. Construction
Different types of tables under this classification of tables are:
 Simple table – Simple table presents only one characteristic. Table 3.10
depicts a simple table.
 Complex table – Complex table presents two or more characteristics.
Table 3.11 depicts a complex table.
 Cross-classified table – In the cross-classified table, the entries are
classified in both directions. Table 3.12 depicts an example of a cross-
classified table.
Table 3.10: Defectives Produced by Batches
Batches No. of defectives
1 15
2 20
3 40
4 50
Table 3.11: Distribution of Defectives According to Batch and Nature of
Defects
Defects
Batch Major Minor
I 8 7
II 15 5
III 25 15
IV 32 18
Total 80 45
Table 3.12: Population of a City According to Age, Sex and Education During
2003 to 2005
Educated Not Educated
Age
Years Below Above Below Above
20 - 40 Total 20 – 40 Total
20 yrs 40 20 yrs 40
Sex
Male
2003
Female
Male
2004
Female
Male
2005
Female

Sikkim Manipal University Page No. 72


Statistics for Management Unit 3

Solved Problem 1
1.1 When the collected data is grouped with reference to time, we have:
a) Quantitative classification b) Qualitative classification
c) Geographical classification d) Chronological classification
Solution – Chronological classification
1.2 Most quantitative classifications are:
a) Chronological b) Geographical
c) Frequency distribution d) None of these
Solution – Frequency distribution
1.3 Caption stands for:
a) A numerical information b) The column headings
c) The row headings d) The table headings
Solution – The column headings
1.4 A simple table contains data on:
a) Two characteristics b) Several characteristics
c) One characteristic d) Three characteristics
Solution – One characteristic
1.5 The headings of the rows given in the first column of a table are called:
a) Stubs b) Captions
c) Titles d) Reference notes
Solution - Stubs
1.6 Geographical classification means, classification of data according to
_______.
Solution – Place
1.7 The data recorded according to standard of education like illiterate,
primary, secondary, graduate, technical, etc, will be known as _______
classification.
Solution – Qualitative
1.8 An arrangement of data into rows and columns is known as _______.
Solution -Tabulation
1.9 Tabulation follows ______.
Solution – Classification
1.10 In a manifold table we have data on _______.
Solution – More than two characteristics

Sikkim Manipal University Page No. 73


Statistics for Management Unit 3

Self Assessment Questions


10. State True or False
i. Tabulation presents the data in a minimum space.
ii. Tabulation is a process of analysis
iii. General purpose table deals with specific objectives.
iv. Derived tables deal with total, percentages, ratios, etc
v. Row of a table is represented by the vertical arrangement of data.

3.4 Frequency and Frequency Distribution


The number of units associated with each value of the variable is called
frequency of that value. For example, if the variable takes the value 15 and
the value 15 occurs 3 times, then 3 is called the frequency of the value 15.
A systematic presentation of the values taken by variable together with
corresponding frequencies is called a frequency distribution of the variable.
Definition
A frequency distribution is a statistical table which shows the set of all
distinct values of the variable arranged in order of magnitude, either
individually or in groups with their corresponding frequencies.
– Croxton and Cowden
Frequency distribution is a table used to organise the data. The left column
(called classes or groups) includes numerical intervals on a variable under
study. The right column contains the list of frequencies, or number of
occurrences of each class/group. Intervals are normally of equal size
covering the sample observations range.
It is simply a table in which the gathered data are grouped into classes and
the number of occurrences which fall in each class is recorded.
A frequency distribution can be classified as:
a. Series of individual observation
b. Discrete frequency distribution
c. Continuous frequency distribution
3.4.1 Series of individual observation
Series of individual observation is a series where the items are listed one
after each observation. For statistical calculations, these observations could

Sikkim Manipal University Page No. 74


Statistics for Management Unit 3

be arranged in either ascending or descending order. This is called as


array.
Example 11
Table 3.13: Data on marks obtained in statistics paper
Marks obtained in
Roll No.
statistics paper
1 83
2 80
3 75
4 92
5 65

The above data list is a raw data. The presentation of data in above form
doesn’t reveal any information. If the data is arranged in ascending/
descending order of their magnitude, it is called arraying of data and it gives
a better presentation.
3.4.2 Discrete frequency distribution
If the data series is presented indicating its exact measurement of units,
then it is called as discrete frequency distribution. Discrete variable is one
where the variates differ from each other by definite amounts.
Solved Problem 2
Assume that a survey has been made to know the number of post-
graduates in 10 families at random; the resulted raw data could be as
follows:
0, 1, 3, 1, 0, 2, 2, 2, 2, 4
This data can be classified into an ungrouped frequency distribution.
Table 3.14: Discrete Frequency Distribution
Number of post
Frequency
graduates
f
X
0 2
1 2
2 4
3 1
4 1

Sikkim Manipal University Page No. 75


Statistics for Management Unit 3

The number of post-graduates becomes variable X for which we can list the
frequency of occurrence f in a tabular form. Table 3.14 depicts a discrete
frequency distribution, where the variables have discrete numerical values.

3.4.3 Continuous frequency distribution


Continuous data series is one; where the measurements are only
approximations and are expressed in class intervals within certain limits. In
continuous frequency distribution the class intervals are theoretically
continuous from the starting of the frequency distribution till the end without
break. According to Boddington, ‘the variable which can take the
intermediate value between the smallest and largest value in the distribution
is a continuous frequency distribution’.
Solved Problem 3
Convert the following data into continuous frequency distribution form:
Table 3.15 depicts the marks obtained by 20 students in exams for
50 marks.
Table 3.15: Marks Obtained by 20 Students

18 23 28 29 44 28 48 33 32 43
24 29 32 39 49 42 27 33 28 29

Table 3.16 depicts how the frequency distribution table can be formed by
grouping the marks into class width of 5.
Table 3.16: Continuous Frequency Distribution
Marks No. of students
0-5 0
5 – 10 0
10 – 15 0
15 – 20 1
20 – 25 2
25 – 30 7
30 – 35 4
35 – 40 1
40 – 45 3
45 – 50 2
A continuous frequency distribution is divided into mutually exclusive sub-
ranges called classes. Classes have lower and upper limits known as lower

Sikkim Manipal University Page No. 76


Statistics for Management Unit 3

class limits and upper class limits respectively. The differences between
upper class limit and lower class limit is termed as class width. The middle
value of a class interval is called mid-value of the class. It is the average of
class limits.

3.4.4 Technical terms used in formulation of frequency distribution


a) Class limits – The class limits are the smallest and largest values in the
class.

Example 12
In the class 0 – 10, the lowest value is zero and highest value is 10. The
two boundaries of the class are called upper and lower limits of the class.
Class limit is also called as class boundaries.
b) Class intervals – The difference between the upper and lower limit of
the class is known as class interval.

Example 13
In the class 0 – 10, the class interval is (10 – 0) = 10.

Example 14
If the marks of 60 students in a class vary between 40 and 100 and if we
want to form 6 classes, the class interval would be:
LS
The formula to find class interval is given as follows: i 
R
L = Largest value
S = Smallest value
R = the no. of classes
L = 100 S = 40 R=6
LS 100  40 60
i = = = 10
R 6 6
Therefore, class intervals would be 40 – 50, 50 – 60, 60 – 70, 70 – 80,
80 – 90 and 90 – 100.

Sikkim Manipal University Page No. 77


Statistics for Management Unit 3

c) Methods of forming class-interval


i) Exclusive method (overlapping) – In this method, the upper limit of one
class is the lower limit of the next class. This method makes continuity of
data.
A student whose marks are in the range of 20-29.9, will be included in the
20–30 class.
Table 3.17 depicts the number of students who have scored marks in the
range of 20-50.
Table 3.17: Marks versus Students
Marks No. of students
20 to less than 30 5
(More than 20 but less than 30)
30 to less than 40 15
40 to less than 50 25
Total Students 50

Key Statistic
Class intervals are of two types; exclusive and inclusive. The class
interval that does not include upper class limit is called an exclusive type
of class interval. The class interval that includes the upper class limit is
called an inclusive type of class interval.
ii) Inclusive method (non-overlapping) – The class interval that includes
the upper class limit is called an inclusive type of class interval.
Example 15
Table 3.18: Marks versus Students

Marks No. of students


20 – 29 5
30 – 39 15
40 – 49 25
A student whose marks are 29 is included in 20–29 class intervals and a
student whose marks are 39 is included in 30–39 class intervals.

Sikkim Manipal University Page No. 78


Statistics for Management Unit 3

In table 3.19, the class ‘0 – 9’ includes the value ‘9’. In table 3.20, the class
‘0 – 10’ does not include the value ‘10’. If the value of ‘10’ occurs, it is
included in the class ‘10 – 20’.
Table 3.19: Inclusive Type of Class Interval

Marks Number of Students


0–9 15
10 – 19 20

Table 3.20: Exclusive Type of Class Interval

Marks Number of Students


0-10 15
10-20 20
20-30 28

d) Class frequency – The number of observations falling within class


interval is called its class frequency.
Example 16: The class frequency 90–100 is 5. This represents 5 students
who have scored between 90 and 100. If we add all the frequencies of
individual classes, the total frequency represents total number of items
studied.
e) Magnitude of class interval- The magnitude of class interval depends
on the range and the number of classes. The range is the difference
between the highest and smallest values is the data series. A class interval
is generally in the multiples of 5, 10, 15 and 20.
Sturges formula to find number of classes is given as follows:
K = 1 + 3.322 log N.
K = No. of classes
log N = Logarithm of total no. of observations
Solved problem 4: If the total number of observations is 100, then number
of classes could be:
K = 1 + 3.322 log 100
K = 1 + 3.322 x 2
Mid K = 1 + 6.644
K = 7.644 = 8 (Rounded off)

Sikkim Manipal University Page No. 79


Statistics for Management Unit 3

Note: Under this formula, number of classes cannot be less than 4 and not
greater than 20.
f) Class mid point or class marks
The mid value or central value of the class is called mid point.
(lower limit of class  upper limit of class)
Mid point of a class =
2
Solved Problem 5:
For the class 10–20; find the lower class limit, the upper class limit, the
width of the class and the mid value of the class.
Solution: For the class 10-20, the lower class limit and the upper class
interval is 10 and 20 respectively. The width of the class is 10. The mid
value of the class is calculated as:
10  20
Mid value of the class = = 15.
2
Therefore, mid value of the class is 15.
g) Sturges formula to find the size of class interval
Range
Size of class interval (h) =
1  3.322 logN

Solved Problem 6:
In a group of 20 workers, highest wage is Rs. 175 and lowest wage is 42 per
day. Find the size of the interval.

K= 1  3.322 log10 N = 1  3.322 log10 20 = 1  3.322  0.3010  5.3219  6

Range 175  42 133


Solution: h = = = = 22.17 23
1  3.322 log10 N 1  3.322 log10 20 6
3.4.5 Constructing a frequency distribution
The following guidelines may be considered for the construction of
frequency distribution.
a) The classes should be clearly defined and each observation must
belong to one and only one class interval. Interval classes must be
inclusive and non-overlapping.

Sikkim Manipal University Page No. 80


Statistics for Management Unit 3

b) The number of classes should be neither too large nor too small.
Too many small classes result in greater interval width with loss of
accuracy. Too many large class intervals result is complexity.
c) All intervals should be of the same width. This is preferred for easy
computations.
Range
The width of interval =
Number of classes
d) Open end classes should be avoided since it creates difficulty in
analysis and interpretation. (Open end class means either lower limit of
the first class or upper limit of the last class will not be specified)
e) Intervals would be continuous throughout the distribution. This is
important for continuous distribution.
f) The lower limits of the class intervals should be simple multiples of the
interval.

Key Statistic
If the class interval does not prescribe lower limit for first class or upper
limit for the last class, then it is known as open-end class interval.

3.4.6 Tally marks


Tally marks are used to construct frequency table. Tally mark is a small
vertical line drawn against a class as soon as we observe a value belonging
to the class. The fifth tally mark is crossed for easy counting purposes. The
table 3.21 represents the marks secured in mathematics by the students of
a class.

Example 17
From the table 3.21, we can depict that ten students got 90 marks in
mathematics; six students got 82 and seven got 75.
Table 3.21: Marks Secured by Students in Mathematics
Marks secured in Number of Students
mathematics
90
82
75

Sikkim Manipal University Page No. 81


Statistics for Management Unit 3

Solved Problem 7
The following problem will explain how raw data can be converted to
frequency distribution.
Marks of 100 students (out of 20) are given below:
Table 3.22: Marks of 100 students (out of 20)

5 14 10 16 8 15 1 14 9 6
11 3 8 12 6 4 11 17 7 10
18 10 15 9 8 14 8 5 15 4
10 13 4 18 2 6 10 7 13 8
16 7 14 11 9 4 11 9 3 7
1 8 10 5 13 7 15 8 19 16
6 17 11 15 6 3 18 12 9 4
14 11 9 4 14 12 8 7 19 10
15 8 19 11 7 16 10 3 6 14
10 19 3 20 8 11 20 14 9 19

Frequency table for the above data is as follows


Table 3.22a: Frequency table

Sikkim Manipal University Page No. 82


Statistics for Management Unit 3

Solved Problem 8
In a survey, it was found that 64 families bought milk in the following
quantity in a particular month.
Table 3.23: Quantity of milk bought by 64 families in a particular month

16 22 9 22 12 39 19 14 23 6
24 16 18 17 20 25 28 18 10 24
20 21 10 7 18 28 24 20 14 23
25 34 22 5 33 23 26 29 13 36
11 26 11 37 30 13 8 15 22 21
32 21 31 17 16 23 12 9 15 27
17 21 19 7

Form a frequency distribution of inclusive type.


Solution: Here the total frequency N= 64
Range = Largest value- Smallest value
= 39-5 = 34
If the class width is 5, the number of classes are = Range/ Class width=
34/5 = 6.8
Hence, taking magnitude of each class interval as 5, we shall get 7 class
intervals. Since the Smallest value is 5, the first class interval by inclusive
method is 5-9. The frequency distribution table is as follows
Table 3.23a: Frequency distribution table

Sikkim Manipal University Page No. 83


Statistics for Management Unit 3

3.4.7 Derived frequency distributions


From a given frequency distribution, we can form five derived frequency
distributions. They are:
i) Relative frequency distribution
If ‘f’ is the class frequency and ‘N’ is the total frequency, the relative
frequency distribution is formed by calculating f/N. Total of all the
values of relative frequency distribution will always be one.
ii) Percentage frequency distribution
The percentage frequency distribution is formed by multiplying
the ratio f/N by 100.
iii) Frequency density distribution
If “c” is the width of the class-interval and “f” is the frequency of the
class, then frequency density distribution is formed by calculating f/c.
iv) Less than cumulative frequency distribution
The less than cumulative frequency distribution is formed with a
number of observations which are less than a given value.
v) More than cumulative frequency distribution
The more than cumulative distribution is formed with a number of
observations, which are more than a given value.

3.4.8 Cumulative frequency distribution


Cumulative frequency distribution is a frequency distribution that indicates
directly the number of units that lie above or below the specified values of
the class intervals. When the interest of the investigator is on the number of
cases below the specified value, then the specified value represents the
upper limit of the class interval. It is known as ‘less than’ cumulative
frequency distribution. When the interest lies in finding the number of cases
above specified value, then this value is taken as lower limit of the specified
class interval. This is known as ‘more than’ cumulative frequency
distribution.
The cumulative frequency simply means that summing up the consecutive
frequency.

Sikkim Manipal University Page No. 84


Statistics for Management Unit 3

Solved Problem 9
In a country music band of 48 members, 22 play a guitar, 12 play brass,
14 play piano. Create a tabular display of the frequency and Relative
frequency distribution for the type of instruments.
Solution
Table 3.24 depicts the frequency and frequency distribution for the type of
instruments in a country music band.
Table 3.24: Frequency Distribution of the Type of Instruments

Type of Instrument Frequency Relative Frequency Distribution


Guitar 22 22/48 = 0.4583
Brass 12 12/48 = 0.2500
Piano 14 14/48 = 0.2917
Total 48 1

Solved Problem 10
Table 3.25 depicts the frequency distribution of marks. Calculate the derived
frequency distributions, less than and more than cumulative frequency
distribution.
Table 3.25: Frequency Distribution of Marks

Marks No of student
0-20 15
20-40 20
40-60 28
60-80 22
80-100 15
Total 100

Solution: Table 3.25a depicts the derived frequency distributions. Table


3.25b depicts less than cumulative frequency distribution and table 3.25c
depicts more than cumulative frequency distribution.

Sikkim Manipal University Page No. 85


Statistics for Management Unit 3

Table 3.25a: Forms of Derived Frequency Distribution

Relative freq. Frequency Percentage


Marks
distribution Density D Distribution
0 – 20 0.15 0.75 15
20 – 40 0.20 1.00 20
40 – 60 0.28 1.40 28
60 – 80 0.22 1.10 22
80 – 100 0.15 0.75 15
Total 1.00 – 100 %

Table 3.25b: Less than Cumulative Frequency Distribution

Marks less than Less than Cumulative Frequency


0 0
20 15
40 15+20= 35
60 35+28= 63
80 63+22= 85
100 85+15= 100

Table 3.25c: More than Cumulative Frequency Distribution

Marks more than More than Cumulative Frequency


0 100
20 100-15= 85
40 85-20= 65
60 65-28= 37
80 37-22= 15
100 15-15= 0

3.4.9 Bivariate and Multivariate frequency distribution


Frequency distribution of more than two variables is known as multivariate
frequency distribution. If the number of variables is only two, then it is called
bivariate frequency distribution. A bivariate frequency distribution will have

Sikkim Manipal University Page No. 86


Statistics for Management Unit 3

two marginal distributions and “m+n” conditional distributions. Here ‘m’


represents the number of rows and ‘n’ represent the number of columns.
In the table 3.26a, the numbers in the last row and column represent
marginal distribution of age. Any row or column number represents
conditional distribution of salary. There are 4 rows (m = 4) and 3 columns
(n = 3). We have 4+3=7 conditional distributions. Table 3.26a depicts the
conditional distribution of age for a given salary and table 3.26b depicts the
conditional distribution of salary for a given age.
Table 3.26: Distribution of Age and Salary

Age in Salary/Month (Rs.)


years 9,000 – 12,000 12,000 – 15,000 15,000 – 18,000 Total
20 – 30 10 3 0 13
30 – 40 8 12 3 23
40 – 50 6 15 10 31
50 – 60 0 3 18 21
Total 24 33 31 88

Table 3.26a: Conditional Distribution of Age for Given Salary

Age Salary (9000 - 12000)


20-30 10
30-40 8
40-50 6
50-60 0
Total 24

Table 3.26b: Conditional Distribution of Salary for Given Age

Salary Age 40-50


9000-12000 6
12000-15000 15
15000-18000 10
Total 31

Sikkim Manipal University Page No. 87


Statistics for Management Unit 3

Solved problem 11
Table 3.27 depicts the data related to the height and weight of 20 people.
Construct a bivariate frequency table with class interval of height as 62-64,
64-66…and weight as 115-125,125-135 and write down the marginal
distribution of x and y.
Table 3.27: Height and Weight of 20 People
S.No. Height Weight S.No. Height Weight
1 70 170 11 70 163
2 65 135 12 67 139
3 65 136 13 63 122
4 64 137 14 68 134
5 69 148 15 67 140
6 63 121 16 69 132
7 65 117 17 65 120
8 70 128 18 68 148
9 71 143 19 67 129
10 62 129 20 67 152

Solution
Table 3.27a depicts the bivariate frequency table showing height and weight
of people.
Table 3.27a: Bivariate Frequency Table

Height(x)
Weight(y) 62-64 64-66 66-68 68-70 70-72 Total

115-125 II (2) II (2) 4


125-135 I (1) I (1) II (2) I (1) 5
135-145 III (3) II (2) I (1) 6
145-155 I (1) II (2) 3
155-165 I (1) 1
165-175 I (1) 1
Total 3 5 4 4 4 20

Sikkim Manipal University Page No. 88


Statistics for Management Unit 3

Table 3.27b depicts the marginal distribution of height and weight.


Table 3.27b: Marginal Distribution of Height and Weight

Marginal distribution of Marginal distribution of weight


height (X) (Y)
CI Frequency CI Frequency
62-64 3 115-125 4
64-66 5 125-135 5
66-68 4 135-145 6
68-70 4 145-155 3
70-72 4 155-165 1
Total 20 165-175 1
Total 20

Self Assessment Questions


11. i) If the data readings are 3, 4, 5, 6, 7, then it is called _________
variable. Height is generally __________ variable.
ii) There are ____________ derived frequency distributions for any
frequency distribution.
iii) Width of class-interval is given by the difference between
________ and ______.
iv) There are ________ marginal distributions for a distribution.
v) __________ formula is used to calculate the number of class-
intervals.
vi) The relative frequency distribution is obtained from frequency
distribution by calculating ___________.

3.5 Presentation of Data


Top management and common man do not have time to go through mass
data and to understand its nature. For them, diagrammatic and graphical
presentations are more intelligible, attractive and appealing. The
diagrammatic representations give a bird’s eye-view of the data. They
facilitate comparison of various aspects of data and it creates ever lasting
impressions. However, they cannot be considered as alternatives for
numerical data. Mathematical calculations are not possible as they do not
give accurate values.

Sikkim Manipal University Page No. 89


Statistics for Management Unit 3

3.5.1 Diagrammatic and Graphic representation


The data collected can be presented graphically or pictorially for easy
understanding and for quick interpretation. Diagrams and graphs give visual
indications of magnitudes, groupings, trends and patterns in the data. The
parameters can be more simply presented in the graphical manner. The
diagrams and graphs helps for comparison of the variables.
Diagrammatic presentation
A diagram is a visual form for presentation of statistical data. The diagram
refers to various types of devices such as bars, circles, maps, pictorials,
cartograms, etc.
Importance of diagrams:
1. They are simple, attractive and easily understandable
2. They give quick information
3. It helps to compare the variables
4. Diagrams are more suitable to illustrate discrete data
5. It will have more stable effect in the reader’s mind
Limitations of diagrams
a. Diagrams shows approximate value
b. Diagrams are not suitable for further analysis
c. Some diagrams are limited to experts (multidimensional)
d. Details cannot be provided fully
e. It is useful only for comparison
3.5.2 General rules for drawing the diagrams
i) Each diagram should have a suitable title indicating the theme with
which the diagram is intended, at the top or at the bottom.
ii) The size of the diagram should emphasise the important characteristics
of the data.
iii) Approximate proposition should be maintained for length and breadth
of the diagram.
iv) A proper/suitable scale to be adopted for diagram.
v) Selection of approximate diagram is important and wrong selection
may mislead the reader.

Sikkim Manipal University Page No. 90


Statistics for Management Unit 3

vi) Source of data should be mentioned at the bottom.


vii) Diagram should be simple and attractive.
viii) Diagram should be effective and not complex.

3.5.3 Types of diagrams


1. One dimensional diagrams (Line and Bar)
In one dimensional diagram, the length of the bars or lines is taken into
account and the widths of the bars are not considered. Bar diagrams are
classified mainly as follows:
a. Line diagram
b. Bar diagram
 Vertical bar diagram
 Horizontal bar diagram
 Multiple (compound) bar diagram
 Sub-divided (component) bar diagram
 Percentage subdivided bar diagram
a. Line diagram –
This is the simplest type of one dimensional diagram. On the basis of the
size of the figures, heights of the bar/ lines are drawn. The distances
between bars are kept uniform. The limitation of this diagram is that, it is not
attractive and it cannot provide more than single information.

Solved Problem 12
Draw the line diagram for the following data
Table 3.28: Data for line diagram

Year 2001 2002 2003 2004 2005 2006


No. of students passed in
5 7 12 5 13 15
first class with distinction

Sikkim Manipal University Page No. 91


Statistics for Management Unit 3

Solution
Figure 3.7 depicts line diagram.

16
(15)
No. of students passed in FCD

14
(13)
(12)
12

10

8
(7)

6 (5) (5)

4
2001 2002 2003 2004 2005 2006
Year

Fig. 3.7: Line Diagram

Indication of diagram: Highest FCD is at 2006 and lowest FCD are at


2001 and 2004.
b. Simple bar diagram
Simple bar diagram is drawn when items are to be compared with respect to
a single characteristic. A rectangular bar is constructed with height
proportional to the magnitude of the items. It can be drawn using a
horizontal or a vertical bar. In business and economics, it is a common
diagram.
Solved Problem 13
Table 3.29 depicts the data regarding the yield/acre of paddy in Karnataka
over the last five years. Represent the data in a bar diagram.
Table 3.29: Data Regarding the Yield Per Acre in Karnataka

Year 2001 2002 2003 2004 2005


Yield 20 22 25 27 30

Sikkim Manipal University Page No. 92


Statistics for Management Unit 3

Solution
Figure 3.8 is a simple bar diagram which depicts the yield of paddy in
Karnataka.

Fig. 3.8: Simple Bar Diagram Showing Yield of Paddy in Karnataka

 Vertical bar diagram


Solved Problem 14
The annual expenses of maintaining various types of cars are given as
follows. Draw the vertical bar diagram. The annual expenses of
maintenance include (fuel + maintenance + repair + assistance +
insurance).
Table 3.30: Annual Expenses of Cars

Type of the Car Expense in Rs. / Year


Maruthi Udyog 47533
Hyundai 59230
Tata Motors 63270

(Source: 2005 TNS TCS Study)


(Published at: Vijaya Karnataka dated: 03.08.2006)

Sikkim Manipal University Page No. 93


Statistics for Management Unit 3

Solution
Figure 3.9 depicts the annual expenses of various cars in a vertical bar
diagram.

70000
65000 63270
59230
60000
55000
50000 47533
45000
40000
35000
30000
Maruthi Udyog Hyundai Tata Motors

Fig. 3.9: Vertical Bar Diagram


(Source: 2005 TNS TCS Study)
(Published at: Vijaya Karnataka dated: 03.08.2006)

Indications of the diagram


 Annual expenses of Maruthi Udyog car is comparatively less with other
brands depicted.
 High annual expenses of Tata motors can be seen from diagram.
 Horizontal bar diagram
Solved Problem 15
Table 3.31 depicts the data of the world’s top 10 steel makers. Draw a
horizontal bar diagram.
Table 3.31: Production of Steel Makers in Million Tonnes

Steel Arcelor Nippon POSCO JFE BAO US NUCOR RIVA Thyssen- Tangshan
maker Mittal Steel Steel krupp

Prodn. in 110 32 31 30 24 20 18 18 17 16
million
tonnes

Sikkim Manipal University Page No. 94


Statistics for Management Unit 3

Solution
Figure 3.10 depicts production of steel by top ten steel makers.

Tangshan 16
Thyssen-krupp 17
Top - 10 Steel Makers

RIVA 18
NUCOR 18
US Steel 20
BAO Steel 24
JFE 30
POSCO 31
Nippon 32
Arcelor Mittal 110

0 20 40 60 80 100 120
Production of Steel (Million Tonnes)

Fig. 3.10: Production of Top Ten Steel Makers

(Source: ISSB Published by India Today)

 Compound bar diagram (Multiple bar diagram)


Multiple bar diagrams are used to provide more information than simple bar
diagrams. Multiple bar diagram provides more than one phenomenon and
is highly useful for direct comparison. The bars are drawn side by side and
different columns, shades, hatches can be used for indicating each
variables used. Multiple bar diagrams are drawn when we have two or more
sets of comparable values.
Solved Problem 16
Table 3.32 depicts the resale value of cars (Rs. 000). Draw the bar diagram
for the following data:
Table 3.32: Resale Value of Various Cars
Year (Model) 2003 2004 2005
Santro 208 252 248
Zen 240 278 274
Wagon R 261 296 302

Sikkim Manipal University Page No. 95


Statistics for Management Unit 3

Solution

350
296 302
300 278 274
261 252
240 248
250
Value in Rs.

208
200

150

100

50

0
1 2 3
Model of Car
Santro Zen Wagnor

Fig. 3.11: Bar diagram for data in Table 3.32


(Source: True value used car purchase data)
(Published by: Vijaya Karnataka dated: 03.08.2006)

Solved Problem 17
Table 3.33 depicts the cost of manufacturing/unit and the revenue/unit from
2002-2005. Create a multiple bar diagram for this data.

Table 3.33: Cost and Revenue per Unit

Year Cost of Manufacturing/Unit Revenue/Unit


2002 - 2003 40 70
2003 – 2004 45 85
2004 – 2005 55 90

Sikkim Manipal University Page No. 96


Statistics for Management Unit 3

Solution: The multiple bar diagram in figure 3.12 depicts the cost and
revenue per unit.

2002

Fig. 3.12: Multiple Bar Diagram showing the Cost and Revenue per Unit

 Component (sub-divided) bar diagram


Component bar diagrams are used when two or more characteristics are
observed in a unit. Each bar is proportionally subdivided.

Key Statistic
It is easier to draw the bar diagram, if we first find the cumulative total for
each section.

 Percentage Bar diagram


Percentage bars are drawn to represent items whose magnitude has two or
more components, and when a comparison of these components as
percentage is required. Here the components are expressed as percentages
of the corresponding totals. The totals are represented by bars of equal
width and height equal to 100 each. These bars are divided according to the
percentage components. The different subdivisions are shaded properly and
an index which describes the shades is provided.

Sikkim Manipal University Page No. 97


Statistics for Management Unit 3

Solved Problem 18
The following table gives the details of monthly expenditure of two families
A and B. Represent the data by mean of percentage bar chart.
Table 3.34: Monthly expenditure of two families A and B

Item Family A Family B


Income Rs. 5000 Income Rs .8000
Food 1400 1600
House rent 1200 1600
Fuel 700 800
Miscellaneous 1000 1600

Solution: Here, on adding the total expenditure of family A comes to


Rs.4300 and that of family B comes to Rs. 5600. But the income of the
families are Rs.5000 and Rs.8000 respectively. Thus, the balance amount
of Rs.700 and Rs.2400 can be treated as savings. From this we can
compute the following percentage expenditures.
Table 3.34a: Percentage of expenditures

Family A Family B
Item Percentage Percentage
Cumulative Cumulative
of of
percentage percentage
expenditure expenditure
Food 28 28 20 20
House rent 24 52 20 40
Fuel 14 66 10 50
Miscellaneous 20 86 20 70
Savings 14 100 30 100
Income 100 100

Fig. 3.13: Percentage bars representing expenditure of families

Sikkim Manipal University Page No. 98


Statistics for Management Unit 3

2. Two-dimensional diagram
In a two-dimensional diagram, both breadth and length of the diagram
i.e. area of the diagram) are considered as area of the diagram represents
the data. The important two dimensional diagrams are:
 Rectangular diagram
 Square diagram
 Pie chart
 Rectangular diagram – Rectangular diagrams are used to depict two or
more variables. This diagram helps for direct comparison. The area of
rectangular are kept in proportion to the values. It may be of two types:
 Percentage sub-divided rectangular diagram
 Sub-divided rectangular diagram
In the former, width of the rectangular are proportional to the values, the
various components of the values are converted into percentages and
rectangles are divided according to them. In the later case, rectangles are
used to show some related phenomenon like cost per unit, quality of
production, etc.
Solved Problem 19
Table 3.35 depicts the expenditure of items by family A and family B. Draw
the rectangle diagram.
Table 3.35: Expenditure of Items in Rupees
Expenditure in Rs.
Item Expenditure
Family A Family B
Provisional stores 1000 2000
Education 250 500
Electricity 300 700
House Rent 1500 2800
Vehicle Fuel 500 1000
Total 3500 7000

Solution
Total expenditure will be taken as 100 and the expenditure on individual
items are expressed in percentage. The width of two rectangles is in
proportion to the total expenses of the two families i.e. 3500: 7000 or 1: 2.
The height of rectangles is according to the percentage of expenses. Table
Sikkim Manipal University Page No. 99
Statistics for Management Unit 3

3.35a depicts the expenditure of various items on a monthly basis, by family


A and family B.
Table 3.35a: Monthly Expenditure of Items

Monthly Expenditure
Item Expenditure Family A (Rs. 3500) Family B (Rs. 7000)
Rs. Percentage Rs. Percentage
Provisional stores 1000 28.57 2000 28.57
Education 250 7.14 500 7.14
Electricity 300 8.57 700 10
House Rent 1500 42.85 2800 40
Vehicle Fuel 500 12.85 1000 14.28
Total 3500 100 7000 100

Provisonal Stores Education


Electricity House Rent Vehicle Fuel

100
% of Expenditure

80

60

40

20

0
A Family B

Fig. 3.14: Diagram showing the expenditure

 Square diagram - To draw square diagrams, the square root is taken of


the values of the various items to be shown. A suitable scale may be
used to depict the diagram. Ratios are to be maintained to draw
squares.

Sikkim Manipal University Page No. 100


Statistics for Management Unit 3

 Component pie diagram


It is drawn when data have magnitudes for two or more components. Circles
with the area proportional to magnitudes are drawn to represent the total
magnitude. Then circles are divided sector-wise according to the magnitude
of the components. If ‘T’ is the total magnitude and ‘R’ is the magnitude of a
component, then the angle at the centre is given by:
360 R
A
T
Solved Problem 20
Table 3.36 depicts the expenses of Prasad’s family and Krishna’s family.
Draw a pie-diagram for the data.
Table 3.36: Monthly Expenses of Two Families
Items Monthly Expenses of Two Families
Prasad’s Family Krishna’s Family
Food 2000 4000
Rent 1000 1500
Fuel 500 1000
Misc 500 1500
Total 4000 8000

Solution: The radii of the circles should be:


4000 : 8000
63.245 : 89.44
1.27 : 1.79

We draw two circles with radii 1.3 and 1.8 cms (where, 1 cm = 50 units).
Table 3.36a depicts the determined angles at the centre.

Sikkim Manipal University Page No. 101


Statistics for Management Unit 3

Table 3.36a: Monthly Expenses Represented in Angles

Monthly Expenses of Two Families


Items
Prasad’s Family Krishna’s Family
Food 180 180
Rent 90 67.5
Fuel 45 45
Misc 45 67.5
Total 360 360

Fig. 3.15: Pie-chart Showing Monthly Expenses of Prasad’s Family

Fig. 3.16: Pie-chart Showing Monthly Expenses of Krishna’s Family

Self Assessment Questions


12. i) Diagrams give an accurate value. (True/False)
ii) Pie diagram is drawn according to degree subtended at the centre
of a circle. (True/False)

Sikkim Manipal University Page No. 102


Statistics for Management Unit 3

iii) Simple bar diagram is drawn for multiple characteristics.


(True/False)
13. The graph plotted in the form of series of rectangles is
i) Frequency ii) Frequency polygon
iii) Pie iv) Histogram
14. The diagram which are used to show percentages break down is
i) A circle ii) A square
iii) A pie iv) A rectangle
15. A line graph indicates
i) Comparison ii) Variation
iii) Range iv) All the above
16. Which of the following is not a type of bar chart?
i) Multiple ii) Percentages
iii) Subdivided iv) Ogive

3.5.3 Choice or selection of diagram


There are many methods to depict statistical data through diagram. No
angle diagram is suited for all purposes. The choice/selection of diagram to
suit a given set of data requires skill, knowledge and experience. Primarily,
the choice depends upon the nature of data and purpose of presentation, to
whomever it is meant. The nature of data will help in taking a decision as to
one-dimensional or two-dimensional or three-dimensional diagram. It is also
required to know the audience for whom the diagram is depicted.
The following points are to be kept in mind for the choice of diagram:
 To the common man who has less knowledge in statistics; cartogram
and pictograms are suited.
 To present the components apart from magnitude of values, sub-divided
bar diagram can be used.
 When a large number of components are to be shown, pie diagram is
suitable.

3.6 Graphical Presentation


Graphical presentations are visual form of presentation graphs, which are
drawn on a special type of paper known as graph paper.

Sikkim Manipal University Page No. 103


Statistics for Management Unit 3

Graphs are used mainly for frequency distributions. Some of the types of
graphs are:
i) Histogram
ii) Frequency polygon
iii) Frequency curve
iv) Ogives [cumulative frequency curves]
Advantages of graphic presentation
 It provides an attractive and impressive view
 Simplifies complexity of data
 Helps for direct comparison
 It helps for further statistical analysis
 It is the simplest method of presentation of data
 It shows trend and pattern of data
Table 3.37 depicts the difference between graph and diagram
Table 3.37: Differences between Diagrams and Graphs

Diagram Graph
1. Ordinary paper can be used 1. Graph paper is required
2. It is attractive and easily 2. It is not easily understandable
understandable
3. It is appropriate and effective to 3. It creates problem
measure more variable
4. It cannot be used for further 4. Can be used for further analysis
analysis
5. It gives comparison 5. It shows relationship between
variables
6. Data are represented by bars, and 6. Points and lines are used to
rectangles represent data
3.6.1 Histogram
In this type of representation the given data are plotted in the form of series
of rectangles. Class intervals are marked along the x-axis and the
frequencies are along the y-axis according to the suitable scale. Unlike the
bar chart, which is one-dimensional, a histogram is two-dimensional in
which the length and width are both important. A histogram is constructed
from a frequency distribution of grouped data, where the height of rectangle
is proportional to the respective frequency and width represents the class
Sikkim Manipal University Page No. 104
Statistics for Management Unit 3

interval. Each rectangle is joined with the other and the blank space
between the rectangles would mean that the category is empty and there is
no values in that class interval.
Solved Problem 21
Table 3.38 depicts the range of marks obtained by the number of students.
Construct a histogram for the following data.
Table 3.38: Marks Obtained by Students

Marks obtained No. of students (f)


15 – 25 5
25 – 35 3
35 – 45 7
45 – 55 5
55 – 65 3
65 – 75 7
Total 30

Figure 3.17 depicts a histogram for the marks obtained by students.

Fig. 3.17: Histogram for the Marks Obtained

Sikkim Manipal University Page No. 105


Statistics for Management Unit 3

Solved Problem 22
Table 3.39 depicts the distribution of age. Draw a histogram for this data.
Table 3.39: Distribution of Age

Age 0-10 10-20 20-30 30-40 40-50


No. of people (f) 5 10 15 12 8

Solution: The figure 3.18 depicts the histogram for the distribution of age
data.

Fig. 3.18: Histogram for the Distribution of Age

We join the upper left corner of highest rectangle to the right adjacent
rectangle’s left corner and right upper corner of highest rectangle to left
adjacent rectangle’s right corner. From the intersecting point of these lines
we draw a perpendicular to the x-axis. The x-reading at that point gives the
mode of the distribution.
If the widths of the rectangles are not equal then we make areas of the
rectangles proportional and draw the histogram.
3.6.2 Frequency polygon
A frequency polygon is a line chart of frequency distribution in which; either
the values of discrete variables or the mid-point of class intervals are plotted
against the frequency or those plotted points are joined together by straight
lines. Since, the frequencies do not start at zero or end at zero, this
diagram as such would not touch the horizontal axis. However, since the
area under entire curve is the same as that of a histogram which is 100%;
Sikkim Manipal University Page No. 106
Statistics for Management Unit 3

the curve must be ‘enclosed’, so that starting mid-point is jointed with


‘fictitious’ preceding mid-point whose value is zero. The beginning of the
curve touches the horizontal axis and the last mid-point is joined with a
‘fictitious’ succeeding mid-point, whose value is also zero, so that the curve
will end at the horizontal axis. This enclosed diagram is known as
‘frequency polygon’.
Solved Problem 23
Table 3.40 depicts the number of frequencies at which the marks are
obtained. Construct a frequency polygon for this data.
Table 3.40: Number of frequencies at which the marks are obtained

Marks (CI) Frequency (f) Mid-point


15 – 25 5 20
25 – 35 3 30
35 – 45 7 40
45 – 55 5 50
55 – 65 3 60
65 – 75 7 70

Solution
Figure 3.19 depicts a frequency polygon.

10

8 A Frequency polygon

6
Frequency

0
0 10 20 30 40 50 60 70 80 90 100
Mid point (x)

Fig. 3.19: Frequency Polygon

Sikkim Manipal University Page No. 107


Statistics for Management Unit 3

3.6.3 Frequency curve


First we draw a histogram for the given data. Then we join the mid points of
the rectangles by a smooth curve. Total area under frequency curve
represents total frequency. They are the most useful form of frequency
distribution.
Solved Problem 24
Construct a frequency curve for the data represented in table 3.39.
Solution
Figure 3.20 depicts the frequency curve for the data in solved problem 22.

Fig. 3.20: Frequency Curve

3.6.4 Ogives
Ogive is obtained by drawing the graph of a cumulative frequency
distribution. Hence, ogives are also called as cumulative frequency curves.
Since a cumulative frequency distribution can be of 'less than' or 'greater
than' type, we have less than and greater than type of ogives.
Less than Ogive – Variables are taken along x-axis and less than
cumulative frequencies are taken along y-axis. Less than cumulative
frequencies are plotted against the upper limit of class interval and joined by
a smooth-curve.
More than Ogive – More than cumulative frequencies are plotted against
lower limit of the class-interval and joined by a smooth-curve.

Sikkim Manipal University Page No. 108


Statistics for Management Unit 3

From the meeting point of these two ogives, if we draw a perpendicular line
to the x-axis, the point where it meets x-axis gives the median of distribution.
Solved Problem 25
Construct an Ogive curve for the data depicted in table 3.41.
Table 3.41: Data for Ogive Curve

Marks No. of Cum. Freq. Cum. Freq.


frequencies Mid-point
(CI) (f) Less than More than
15 – 25 5 20 5 30
25 – 35 3 30 8 25
35 – 45 7 40 15 22
45 – 55 5 50 20 15
55 – 65 3 60 23 10
65 – 75 7 70 30 7

Figure 3.21 depicts a ‘less than’ ogive diagram.


Less than Cumulative Frequency

30

'Less than' ogive


25

20

15

10

20 30 40 50 60 70
Upper Boundary (CI)

Fig. 3.21: Less than Ogive Diagram

Sikkim Manipal University Page No. 109


Statistics for Management Unit 3

Figure 3.22 depicts a ‘more than’ ogive diagram.

35

30 'More than' ogive


More than Ogive

25

20

15

10

10 20 30 40 50 60 70
Lower Boundary (CI)

Fig. 3.22: More than Ogive Diagram

Key Statistic
With the help of an ogive, we can find all positional values of a
distribution as Median. An ogive curve gives, at a glance, percentage of
readings that lie above or below a specified value.

Activity:
1. A friend of yours heard that you were taking statistics and has
presented you with the following table from which he wants you to
construct a histogram.
Table 3.42: Frequency table
Age Relative Frequency (%)
00-14 28.4
15-44 50.5
45+ 21.1
100.0

Discuss the problems involved in drawing a histogram.

Sikkim Manipal University Page No. 110


Statistics for Management Unit 3

2. Given the following data:


18, 13, 2, 20, 8, 10, 5, 10, 6, 9, 10, 20, 2
15, 16, 16, 13, 10, 17, 10, 3, 2, 15, 8, 5
a) Construct a frequency distribution using the Class limits
1-4, 5-8, 9-12, 13-16, 17-20.
b) Why is it useful to construct a frequency distribution and/or a
histogram of the sample data?
3. On a final examination, the following scores were earned:
5,6,7,7,10,15,16,16,17,17,22,22,22,25,26,28,31,33,35,37,40.
Use this data to answer the following questions:
(1) Construct a frequency table for this data, grouping the data into
9 class intervals.
(2) What are the exact or real limits of the lowest class interval?
4. If variable Y can only take on the following five values with relative
frequencies as indicated:
Table 3.43: Frequency table

Y Relative Frequency Cumulative Relative Frequency

0 5/100

1 25/100

2 30/100

3 25/100

4 15/100

a. Fill in the cumulative relative frequencies.


b. Using 5 classes with unit widths and identifying the midpoints of
the classes with the values of y, plot the relative frequency
histogram for the data.
c. Using your relative frequency histogram, indicate the positions of
the mean, median, and mode.
d. If relative frequency is given as the interpretation of probability,
then what is the probability that y is greater than or equal to 2?

Sikkim Manipal University Page No. 111


Statistics for Management Unit 3

5. If both a frequency diagram and a relative frequency diagram are


drawn for the following data:
Table 3.44
X f
15 3
17 5
19 4
23 3
29 1

We can state that: (Choose the right option)


a. Both will have the same values on the horizontal axis.
b. The frequency diagram will be less precise than the relative
frequency diagram.
c. One depicts data in many-value classes while the other depicts
single-value classes.
d. Both depict continuous variables.
6. A graphical presentation may accomplish ALL BUT which of the
following objectives?
a) Illustrate the amount of variation in the data.
b) Illustrate approximately where the mean is.
c) Allow comparison with similar data.
d) Will have the exact same shape regardless of what units are used
on the axes.
7. A frequency distribution provides which of the following information:
a) The value of the measurement and the number of individuals
with that value.
b) The value of the measurement and the percent of individuals
with that value.
c) The value of the measurement and the percent of individuals
with that value or a smaller one.
d) The value of measurement permits comparisons between data
sets of different sizes.

Sikkim Manipal University Page No. 112


Statistics for Management Unit 3

Activity Solution
1. Open ended interval, too few intervals to give meaningful results and
intervals are of unequal length.
2. a) Table 3.45: Frequency table
Class Frequency Relative Frequency
1-4 4 4/25
5-8 5 5/25
9-12 6 6/25
13-16 6 6/25
17-20 4 4/25
Totals 25 1

b) (i) Sometimes it is easier to get the mean and variance


(group method -- by hand).
(ii) Visual check on calculation of mean and variance.
(iii) Easier for lay person (specialist also) to see what values are
likely and what values are unlikely in a population.
3. 1) Table 3.46: Frequency Table

Score Midpoint Frequency


5-8 6.5 4
9-12 10.5 1
13-16 14.5 3
17-20 18.5 2
21-24 22.5 3
25-28 26.5 3
29-32 30.5 1
33-36 34.5 2
37-40 38.5 2

2) The real or exact limits of the lowest interval are 4.5 – 8.5.

Sikkim Manipal University Page No. 113


Statistics for Management Unit 3

4. a) Table 3.47: Frequency table


Y Cumulative relative frequency
0 05/100
1 30/100
2 60/100
3 85/100
4 100/100

b) |
30 + -------
| | |
+ ------ | |------
| | | | |
20 + | | | |
Relative | | | | |
Frequency + | | | |----
| | | | | |
10 + | | | | |
| | | | | |
+-----| | | | |
| | | | | |
---+----+-----+-----+-----+--------> Y
0 1 2 3 4
c) Median = 1.5 + (20/30)(1.0) = 2.17
Mode = 2
Mean = [0(5) + 1(25) + 2(30) + 3(25) + 4(15)]/100 = 220/100 = 2.2
d) Probability (Y >= 2) = (30/100) + (25/100) + (15/100) = 70/100 =
.70 = 70%
5. a) Both will have the same values on the horizontal axis.
6. d) Will have the exact same shape regardless of what units are used
on the axes.
7. a) The value of the measurement and the number of individuals with
that value.

Sikkim Manipal University Page No. 114


Statistics for Management Unit 3

3.7 Summary
Let us recapitulate the important concepts discussed in this unit:
 For better understanding and usefulness, the collected data is classified
in a systematic manner according to common characteristics.
Classification simplifies and makes data more comprehensible and
renders the data ready for statistical analysis.
 Classified data is tabulated in rows and columns for presentation, using
various types of classification. The tabulated data should be simple and
unambiguous, which should be understood and interpreted easily.
 Frequency distribution is a special type of tabulation. In more concise
form, it brings out the salient features of the distribution.
 Data presented in a diagram or graphical form is more appealing and
gives rough idea of the situation for busy executives.
 Graphical data is visual representation of data in the form of line
diagrams, pie-charts, histograms, frequency polygons, frequency curves,
or ogives.
 In a pie chart, different segments of a circle represent percentage
contribution of various components to the total. It brings out the relative
importance of various components of data.
 The graph of cumulative frequency distribution is the ogive curve.

3.8 Glossary
Bar graph: A graphical device for depicting data that have been
summarised in a frequency distribution.
Bivariate distribution: If the number of variables is only two, then it is
called bivariate frequency distribution.
Cross tabulation: A tabular summary of data for two variables.
Frequency distribution: A tabular summary of data of numbers.
Histogram: A graphical presentation of a frequency distribution.
Multivariate frequency distribution: Frequency distribution of more than
two variables is known as multivariate frequency distribution.
Ogive: A graph of a cumulative distribution.

Sikkim Manipal University Page No. 115


Statistics for Management Unit 3

Pie chart: A graphical device for depicting data summaries based on the
subdivision of a circle into sector that corresponds to the relative frequency
for each class.

3.9 Terminal Questions


1. Form frequency distribution for the following data regarding weight of 50
people.
Table 3.48: Data regarding weight of 50 people
50 72 61 64 72 62 61 56 75 55
52 71 54 64 71 64 59 59 70 54
60 60 57 57 66 68 60 62 68 54
62 65 58 64 65 60 60 67 58 56
70 62 60 68 64 62 59 69 52 58

2. Junior executive of XYZ Company has prepared budget for a new


division of the company. Table 3.49 depicts the budget data. Vice
president of the company wanted to see the summary of the budget in a
diagrammatic form. Prepare a pie diagram.
Table 3.49: Budget of XYZ Company

Category Rs. in Lakhs


Capital investment 140
Salary and wages 65
Raw material 100
Research and development expenses 15
Miscellaneous 40

3. ABC Ice Cream Company attempts to keep all of its ten flavours of ice
cream in stock at each of its stores. In-charge of stores operation
collects data on the daily amount of each flavour to the nearest half
gallon.
i. Is the flavour classification discrete or continuous? Open or closed?
ii. Data collected, is it qualitative or quantitative?
iii. Is the amount collected on each flavour discrete or continuous?

Sikkim Manipal University Page No. 116


Statistics for Management Unit 3

4. Table 3.50 depicts certain data. Construct histogram for this data.
Table 3.50: Frequency Table

Class 0-5 5-10 10-15 15-20 20-25 25-30


Frequency 4 6 10 5 3 1

5. Association of real estate sellers has collected data on a sample of 100


people with respect to the monthly commission earned by them. Table
3.51 depicts certain data. Construct an ogive. Find:
i. What proportion of sales people earn more than 25,000
ii. What proportion earn between 15,000 and 25,000.
Table 3.51: Collected Data of 100 people with Respect to Commissions
Earned
Earnings 5000 or 5000- 10000- 15000- 20000- 25000-
less 10000 15000 20000 25000 30000
No. of 5 9 13 30 27 16
people

3.10 Answers

Self Assessment Questions


1. Grouping, common characteristics
2. Bulk
3. Attributes
4. Two-Way Classification
5. Two
6. Chronological classification
7. i) location
8. iv) groups of related facts in different classes
9. ii) chronological
10. i) True, ii) False, iii) False, iv) True, v) False
11. i) Discrete variable Continuous variable
ii) Five
iii) Upper class limit and lower class limit

Sikkim Manipal University Page No. 117


Statistics for Management Unit 3

iv) Two
v) Sturge’s
vi) f/N
12. i) False ii) True iii) False
13. iv) Histogram
14. iii) Pie
15. iv) All the above
16. iv) Ogive
Terminal Questions
1. Table 3.52 depicts the solution for terminal question 1.
Table 3.52: Frequency Distribution Table
Class Interval Frequency
50-55 7
55-60 10
60-65 18
65-70 8
70-75 6
75-80 1
Total 50

2. The table 3.53 depicts the data required to construct the pie-chart (figure
3.22) for the budget data of XYZ Company.
Table 3.53: Budget of XYZ Company

Category Angle Subtended at the centre of


circle
Capital investment 140
Salary and wages 65
Raw material 100
Research and 15
development expenses
Miscellaneous 40

Sikkim Manipal University Page No. 118


Statistics for Management Unit 3

Fig. 3.23: Pie-chart


3. i. Discrete and closed
ii. Flavour is qualitative. Volume is quantitative
iii. Continuous
4. Figure 3.24 depicts a histogram diagram for the data in terminal
question 4.

Fig. 3.24: Histogram

5. Figure 3.25 is the ogive curve for the data given in terminal
question 5.
i. 6% ii. 57%

Sikkim Manipal University Page No. 119


Statistics for Management Unit 3

Fig. 3.25: Ogive Curve

3.11 Case Study


Case Study 1: Housing Complex
The welfare committee of a large housing complex wants to understand the
possibility of appointing private security guards at the entrance gate of the
complex for 24 hours duty. There are 810 Flats in the Housing Complex and
the owners were asked to vote for or against the proposal. The following
data was collected:

Should the guards be appointed?

Yes 194
No 121
Not Sure 73
No response 422

Discussion Questions:
a) Convert the data to percentages and construct
i) A bar chart
ii) A pie chart
Which of these charts do you prefer to use and why?

Sikkim Manipal University Page No. 120


Statistics for Management Unit 3

b) Eliminating the no response group, convert the remaining 388


responses to percentages and again construct bar and pie charts.
c) If you have been designated as a poll officer, based on your analysis of
the data, what would you like to suggest to the president of the welfare
committee?
Case Study 2
All insurance companies, offering unit linked insurance policies, charge a
certain amount of money by way of meeting initial expenses. However, the
percentages of such expenses ratio vary from company to company. Table
3.45 depicts the expenses ratio including allocation charges for some
companies and for various maturity periods.
Present the above data with the help of suitable graphs to provide a
comparative idea of the money charged for meeting initial expenses.
Comment on the comparative assessment.

Bajaj ICICI
Tata
HDFC unit Allianz Kotak Safe Prulife SBI Unit Birla Sun
AIG
linked New Investment Time Plus II life
Invest
Endowment Unit Plan Super Regular Premier
Assurell
Gain Regular
1 year 6.4 4.8 7.4 3.7 5.4 5.6 3.5
10 years 2.7 2.9 3.6 2.4 3.5 2.9 2.2
15 year 1.8 2.4 2.8 2.1 3.0 2.3 1.9
20 years 1.5 2.2 2.4 1.9 2.8 2.0 1.7
25 years 1.3 2.1 2.2 1.8 2.6 1.9 1.6
30 years 1.2 2.0 2.1 1.7 2.6 1.8 1.5
(Source: Economic Times dt 23rd October 2006)

References:
 Agarwal B.L. (2006). Basic Statistics, 4th Ed, New Age International
Publishers.
 Bowerman B. L., & R.T. O Connel. Applied Statistics: Improving
Business Processes, Irwin 1996.
 Levin R.I., & Rubin, L.D.S. (2008). Statistics for Management, 7th Ed,
PHI Learning Private Limited.
 Pisani F.D.R., & Purves R., Statistics, 3rd Ed, W.W Norton 1997.

Sikkim Manipal University Page No. 121


Statistics for Management Unit 3

 Srivastava T.N., & Rejo, Shailaja (2008). Statistics for Management, 5th
Ed. TMH.
 Tanur J.M, Statistics: A Guide to the unknown, 4th Ed, Brooks /cole,
2002.
 Tukey J.W., Exploratory Data Analysis, Addison –Wesley, 1977.
 Wilcox R.R. (2009). Basic Statistics – Understanding Conventional
Methods and Modern Insights, Oxford University Press.
E-References:

 http://www.textbooksonline.tn.nic.in/Books/11/Stat-EM/Chapter-1.pdf

Sikkim Manipal University Page No. 122

You might also like