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Exploring Data
Chapter 4
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Learning Objectives
LO4-1 Construct and interpret a dot plot
LO4-2 Identify and compute measures of position
LO4-3 Construct and analyze a box plot
LO4-4 Compute and interpret the coefficient of skewness
LO4-5 Create and interpret a scatter diagram
LO4-6 Compute and interpret the correlation coefficient
LO4-7 Develop and explain a contingency table
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the prior written consent of McGraw-Hill Education.
Dot Plots Example
Use dot plots to compare the two data sets like these of
the number of vehicles serviced last month for two
different dealerships
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the prior written consent of McGraw-Hill Education.
Dot Plots Example (2 of 2)
Minitab provides dot plots and summary statistics
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the prior written consent of McGraw-Hill Education.
Measures of Position
Measures of location also describe the shape of the
distribution and can be expressed as percentiles
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Measures of Position Example (2 of 2)
Next, find the median
L50 = (15+1)*50/100 = 8
So the median is $2,038, the value at position 8
25 75
L25 = (15 +1) =4 L75 = (15 +1) = 12
100 100
Therefore, the first and third quartiles are located at the 4th and 12th
positions, respectively: L25 = $1, 721; L75 = $2, 205
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Box Plots
BOX PLOT A graphic display that shows the general shape of a
variable’s distribution. It is based on five descriptive statistics: the
maximum and minimum values, the first and third quartiles, and the
median.
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the prior written consent of McGraw-Hill Education.
Box Plot Example
Alexander’s Pizza offers free delivery of its pizza within
15 miles. How long does a typical delivery take? Within
what range will most deliveries be completed?
Using a sample of 20 deliveries, Alexander determined the
following:
Minimum value = 13 minutes
Q1 = 15 minutes
Median = 18 minutes
Q3 = 22 minutes
Maximum value = 30 minutes
Develop a box plot for delivery times
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Box Plot Example Continued
Begin by drawing a number line using an appropriate scale
Next, draw a box that begins at Q1 (15 minutes) and
ends at Q3 (22 minutes)
Draw a vertical line at the median (18 minutes)
Extend a horizontal line out from Q3 to the maximum
value (30 minutes) and out from Q1 to the minimum
value (13 minutes)
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the prior written consent of McGraw-Hill Education.
Common Shapes of Data
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Skewness
The coefficient of skewness is a measure of the symmetry
of a distribution
Two formulas for coefficient of skewness
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Skewness (2 of 2)
The coefficient of skewness can range from -3 to +3
A value near -3 indicates considerable negative skewness
A value of 1.63 indicates moderate positive skewness
A value of 0 means the distribution is symmetrical
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Skewness Example
Following are the earnings per share for a sample of
15 software companies for the year 2018.The
earnings per share are arranged from smallest to
largest.
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Skewness Example (2 of 2)
Step 1 : Compute the Mean
X
X
$74.26
$4.95
n 15
s
XX
2
($0.09 $4.95)2 ... ($16.40 $4.95)2 )
$5.22
n 1 15 1
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without the prior written consent of McGraw-Hill Education.
Correlation Coefficient
A statistic called the correlation coefficient can be
calculated to measure the direction and strength of the
relationship between two variables
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without the prior written consent of McGraw-Hill Education.
Contingency Tables
A contingency table is used to classify nominal scale
observations according to two characteristics
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Contingency Table Example
Applewood Auto Group’s profit comparison
90 of the 180 cars sold had a profit above the median and
half below.This meets the definition of median.
The percentage of profits above the median are Kane
48%, Olean 50%, Sheffield 42% , and Tionesta 60%.
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Chapter 4 Practice Problems
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Question 7 LO4-2
The box plot below shows the amount spent for books and
supplies per year by students at four-year public colleges.
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Question 15 LO4-4
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Question 19 LO4-7
The Director of Planning for Devine Dining Inc. wishes to study the
relationship between the time of day a customer dined and whether the guest
orders dessert. To investigate the relationship, the manager collected the
following information on 200 recent customers.
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