Tabular and Graphical Methods: Business Statistics: Communicating With Numbers, 4e

2
Tabular and
Graphical Methods
Business Statistics:
Communicating with Numbers, 4e
By Sanjiv Jaggia and Alison Kelly
Copyright ©2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written
2/5/2022 consent of McGraw Hill.
2-1
Learning Roadmap
• Construct and interpret a frequency distribution for
a categorical variable.
• Construct and interpret a bar chart and a pie chart.
• Construct and interpret a contingency table and a
stacked bar chart for two categorical variables.
• Construct and interpret a frequency distribution for
a numerical variable
• Construct and interpret a histogram, a polygon, and
an ogive.
BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-2

consent
Copyright ©2022 McGraw Hill. All rights reserved. No reproduction or distribution withoutofthe
McGraw Hill. consent of McGraw Hill.
prior written
2-2
Learning Roadmap – cont.
• Construct and interpret a scatterplot, a scatterplot

with a categorical variable, and a line chart.
• Construct and interpret a stem-and-leaf diagram.

consent
prior written
2-3
Methods to Visualize a
Categorical Variable
• A categorical variable consists of observations
that represent labels or names.
• Summarizing data with a frequency
distribution.
– Group the data into categories and record the number of
observations that fall into each category.
– The relative frequency for each category is the proportion of
observations in each category.
– Multiply the proportions by 100 to get percentages.

consent
prior written
2-4
• Example: Myers-Briggs assessment personality
types for 1,000 employees at a technology firm.

consent
prior written
2-5
Categorical Variable – cont.
• A bar chart depicts the frequency or relative
frequency for each category of the categorial
variable.
– Series of either horizontal or vertical bars
– Bar lengths proportional to the values they are depicting
• A pie chart is a segmented circle whose segments

portray the relative frequencies of the categories
of a qualitative variable.

consent
prior written
2-6
Bar Chart & Pie Chart Illustrated
• Example: Myers-Briggs assessment personality types
for 1000 employees at a technology firm.

consent
prior written
2-7
• The simplest graph should be used.
• Axes should be clearly marked with numbers and scales.
• Bars on bar charts should have the same width.
• Vertical axis should not have a very high values as an upper limit.

consent
prior written
2-8
• Vertical axis should not be stretched.

consent
prior written
2-9
Methods to Visualize the Relationship
Between Two Categorical Variables
• Use a contingency table to examine the relationship
between two categorical variables.
– Frequencies for two categorical variables
– Each cell represents a mutually exclusive combination of the pair
of values
• Use a stacked column chart to visualize more than
one categorical variable.
– Graphically shows the contingency table
– Allows for the comparison compositive within each category

consent
prior written
2-10
• Example: Myers-Brigg personality assessment and sex
Personality
Sex Analyst Diplomat Explorer Sentinel
Female 55 164 194 79
Male 61 160 210 77

consent
prior written
2-11
Numeric Variable
• With a numerical variable, each observation
represents a meaningful amount or count.
• Use a frequency distribution to summarize a
numerical variable.
• Instead of categories, we construct a series of
intervals or classes.
• The data are more manageable using a
frequency distribution, but some detail is lost.

consent
prior written
2-12
Numeric Variable – cont.
• It is inherent to make decisions about the number of
intervals and the width of each interval.
– The intervals are mutually exclusive.
– The total number of intervals usually ranges 5 -20
– The intervals are exhaustive.
– The intervals are easy to recognize and interpret.
– A starting point for approximating the width of each
𝑀𝑎𝑥𝑖𝑚𝑖𝑚−𝑀𝑖𝑛𝑖𝑚𝑢𝑚
interval is given by .
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑛𝑡𝑒𝑟𝑣𝑎𝑙𝑠

consent
prior written
2-13
• Example: house prices in Punta Gorda
• Suppose we are going to have 6 intervals.
• The maximum is 649 and the minimum is 125.
• As a starting point, the width of each interval could be:
649−125
= 87.33.
6
• This would not give limits that are easily recognizable,
so we use 100.

consent
prior written
2-14
• In addition to a frequency distribution, there are
three other items to compute.
– Relative frequency: proportion (or fraction) of observations
that falls into each interval.
– Cumulative frequency: the number of observations that
falls below the upper limit of a particular interval.
– Cumulative relative frequency: the proportion (or fraction)
of observations that falls below the upper limit of a
particular interval.

consent
prior written
2-15
• Use the previous frequency distribution to determine
the below.

consent
prior written
2-16
• A histogram is the counterpart to the vertical bar
chart used for a categorical variable.
• Graphically depict a frequency distribution for a
numeric variable.
– A series of rectangles
– Mark off the along the horizontal axis
– The height of each bar represents the frequency or
relative frequency for each interval
– No gaps between bars/intervals

consent
prior written
2-17
Histogram
• A histogram allows us to quickly see where most of the
observations tend to cluster.
• A histogram indicates the spread and shape of the
variable.
– Symmetric: mirror image of itself on both sides of its center
– Skewed: positive (elongated right tail) or negative (elongated left tail)

consent
prior written
2-18

consent
prior written
2-19
• A polygon provides another way of depicting a
frequency distribution.
– Midpoint of each interval/class on the x-axis
– Frequency or relative frequency on the y-axis
– Connect neighboring points with a straight line
• Provides a general idea about the shape of a

distribution.

consent
prior written
2-20

consent
prior written
2-21
• An ogive depicts a cumulative frequency or
cumulative relative frequency.
– Upper limit of each interval/class on the x-axis
– Cumulative frequency or cumulative relative
frequency on the y-axis
– Connect neighboring points with a straight line
– Close the ogive at the lower end by intersecting the x-
axis at the lower limit of the first interval

consent
prior written
2-22
Example: house prices in Punta Gorda

consent
prior written
2-23
Scatterplot
• Use a scatterplot to examine the relationship between

two numerical variables.
– Determine if two numerical variables are related in some systematic
way
– Each point represents a pair of observations of the two variables
– Refer to one variable as x (x-axis) and the other as y (y-axis)
• Once plotted, the graph may reveal one of the below.

– A linear relationship
– A nonlinear relationship
– No relationship

consent
prior written
2-24
Scatterplot Illustrated

consent
prior written
2-25
Scatterplot Example
• Example: house prices and square footage in Punta
Gorda

consent
prior written
2-26
Individual
Growth Mindset Challenge
Construct scatter plot of the following data and
describe the relationship.
a. Test score
b. Life Obesity
c. Consumption

consent
prior written
2-27
Line Chart
• A line chart displays a numerical variable as a

series of consecutive observations connected by a
line.
• It is useful for tracking changes or trends over time.
• It is also easy for us to identify any major changes
that happened in the past on a line chart.

consent
prior written
2-28
Line Chart Example
• Example: monthly stock prices for Apple and Merck

consent
prior written
2-29
Stem-and-Leaf Diagram
• A stem-and-leaf diagram provides another visual

method for displaying a numerical variable.
• It gives an overall picture of where the observations
are centered and how they are dispersed from the
center.
• Separate each observation of a variable into two
parts.
– Stem: left-most digits
– Leaf: the last digit26

consent
prior written
2-30
Rank Name Age Net Worth
1 Jeff Bezos 56 131.0
2 Bill Gates 64 96.5
3 Warren Buffet 89 82.5
4 Larry Ellison 75 62.5
5 Mark Zuckerberg 35 62.3
6 Michael Bloomberg 77 55.5
Stem-and-Leaf 7 Larry Page 46 50.8
Diagram 8 Charles Koch 84 50.5
9 Sergey Brin 46 49.8
10 Jim Walton 71 44.6
11 Alice Walton 70 44.4
12 Rob Walton 75 44.3
13 Steve Ballmer 63 41.2
14 Sheldon Adelson 86 35.1
15 Michael Dell 54 34.3
16 Phil Knight 81 33.4
17 Jacqueline Mars 80 23.9
18 Elon Musk 48 22.3
19 Jim Simons 82 21.5
consent of McGraw Hill. STATISTICS | Jaggia, Kelly
BUSINESS 2-31
Stem-and-Leaf Example
• Example: age of the wealthiest people in the world

consent
prior written
2-32

Tabular and Graphical Methods: Business Statistics: Communicating With Numbers, 4e

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tabular and Graphical Methods: Business Statistics: Communicating With Numbers, 4e

Uploaded by

Copyright:

Available Formats

2

By Sanjiv Jaggia and Alison Kelly

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-2

• Construct and interpret a scatterplot, a scatterplot

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-3

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-4

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-5

• A pie chart is a segmented circle whose segments

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-6

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-7

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-8

• Vertical axis should not be stretched.

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-9

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-10

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-11

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-12

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-13

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-14

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-15

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-16

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-17

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-18

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-19

• Provides a general idea about the shape of a

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-20

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-21

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-22

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-23

• Use a scatterplot to examine the relationship between

• Once plotted, the graph may reveal one of the below.

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-24

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-25

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-26

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-27

• A line chart displays a numerical variable as a

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-28

• Example: monthly stock prices for Apple and Merck

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-29

• A stem-and-leaf diagram provides another visual

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-30

• Example: age of the wealthiest people in the world

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-32

You might also like