Lecture 2

BUSINESS STATISTICS DESCRIPTIVE STATISTICS:

Advanced Educational Program Tables and Charts

Reading materials:
Chap 2,3 (Keller)

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Why do we have to summarise data

• Recap
– In the previous chap you know how to collect data. Data collected
through surveys are called ‘raw’ data.
– Raw data may include thous. obs and often provide too much
information => need to summarise before presenting to audience
• Requirement
– Data summary clears away details but should give the overall
pattern.
– Summarised information are concise but should reflect the accurate
view of the original data
• Methods to summarise and present data
– Tables
– Charts
– Numerical summaries (measure of location and dispersion) 3

Outline

• Frequency table (frequency distribution)

- Simple frequency table
- Grouped frequency table Univariate distribution
• Charts
- Bar and pie charts
- Histograms
- Boxplot

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1
 Frequency tables Simple frequency distribution
• What is a simple frequency table: consider each
• Frequency is the number of times a certain value has observed value as a class
happened
• A frequency distribution records the number of • Applications:
times each value occurs and is presented in the form • Qualitative data
of table • Discrete variable with few values
• Types of frequency distribution: • Example of discrete variable with few values
• Simple frequency distribution
• You are given a raw data of midterm marks of 20 students as
• Grouped frequency distribution follows: 7, 7, 10, 8, 5, 4, 5, 6, 4, 9, 8, 7, 6, 4, 8, 5, 7, 10, 10, 9
• Create a simple frequency table manually

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Simple frequency table: example 1 Simple frequency distribution:

nominal variable
Marks Number of students (frequency) • Example 2: We have a data set of 686 international
students studying at UNSW, Australia. Create a
4 3 frequency table
5 3
• Large data set => can’t create a frequency table
manually
6 2
• Creating a simple frequency table using SPSS
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• Go to ‘Analyse’ => ‘Tables’ => ‘Tables of
8 3 frequency’
9 2 • When the dialog box appears, choose a variable for the
box ‘Frequencies for’, then click OK
10 3
• Copy the table to Excel for more manipulations
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Simple frequency distribution: example 2 Grouped frequency tables

Nationality Number of students (frequency)
Australia 179 • What is a grouped frequency table? Each class
New Zealand 1 include a range of observed values (class interval)
Hong Kong 21
Singapore 48
• Applications:
Malaysia 70
Indonesia 76 • Discrete variables with many values: age
Philippines 6
Thailand 18 • Continuous variables
China 99
Vietnam 9
• Two types of grouped frequency tables:
India 11
• Frequency table with equal class intervals
USA, Canada 14
UK, Ireland 35 • Frequency table with unequal class intervals
Other Europe 42
Rest of the world 57
Total 686
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2
 Grouped FT with equal class interval: Grouped FT with equal class interval:
discrete variable with many values discrete variable with many values (cont.)
Example 3: the marks scored by 58 candidates seeking promotion in
a personnel selection test were recorded as follows. Construct a Marks (class interval) Number of
frequency table using a class width of ten marks candidates
(frequency)
37 49 58 59 56 79 21 – 30 2 Note: Decision on the
62 82 53 58 34 45 31 – 40 11 number of classes and
40 43 44 50 42 61 class intervals is
41 – 50 17 subjective but the
54 30 49 54 76 47 51 – 60 20 number should be
64 53 64 54 60 39 61 – 70 5 chosen carefully
49 44 47 44 25 38 71 – 80 2
55 57 54 55 59 40 81 – 90 1
31 41 53 47 58 55 Total 58
59 64 56 42 38 37
33 33 47 50
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Grouped FT with equal class interval:

Grouped FT with equal class interval: continuous variable (cont.)
continuous variable
Wages (class Number of
interval) people Terminology:
Example 4: draw a frequency table of wages (in (frequency)
Lower value: the lowest value of one
USD) paid to 30 people as follows: < $100 2 class.
$100 – < $200 5 Upper value: the highest value of
202 277 554 145 361 one class
$200 – <$300 8 Class interval: range from lower to
457 87 94 240 144 upper value
310 391 362 437 429 $300 – <$400 9
Open-ended class: the first or last
176 325 221 374 216 $400 – <$500 5 classes in the range may be open-
ended. That means they have no
480 120 274 398 282 $500 – <$600 1 lower or upper values (e.g: <$100).
153 470 303 338 209 Total 30 Open-ended class is designed for
uncommon value: too low or too high

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Grouped FT with unequal class interval Frequency distribution: summary

1. Simple frequency distribution: easy task and can either do
manually or rely on statistical software
Wages per employee Number of employees
2. Grouped frequency distribution: more difficult. The
≤ $60 4 hardest task is to decide the number of classes and class
> $60 – ≤ $80 6
width or class intervals. Obs in one class should be
homogenous in terms of characteristics. The more you
> $80 – ≤ $90 6 work on it, the more reasonable classes’ number and size
> $90 – ≤ $120 6 you decide
> $120 3 3. The upper value of the previous class should not coincide
with the lower value of the following class to make sure
each value should only be in one class.

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3
 Class midpoint, cumulative, percentage, and
Guidelines for forming class interval cumulative percentage frequency distribution

Wages (class Class Number of Cumulative Percentage Cumulative

interval) midpoint people frequency frequency percentage
(frequency) frequency
< $100 50 2 2 6.7 6.7
$100 – < $200 150 5 7 16.7 23.3
$200 – <$300 250 8 15 26.7 50.0
$300 – <$400 350 9 24 30.0 80.0
$400 – <$500 450 5 29 16.7 96.7
$500 – <$600 550 1 30 3.3 100.0
Total 30

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Class midpoint, cumulative, percentage, and

cumulative percentage frequency distribution

• Class midpoint: the average

• Cumulative frequency: running total of frequencies
through the classes of a FT Practice with SPSS
• Percentage (relative) frequency: proportion of a
frequency of a class on total frequencies.
• Cumulative percentage frequency: similar to
cumulative frequency but in percentage

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Charts
See how the figures tell you
• Tools for qualitative and discrete data:
• Simple bar charts
https://edition.cnn.com/videos/politics/2020 • Pie charts
/08/04/president-trump-axios-interview-
vpx.cnn
• Tools for continuous data:
• Histograms
• Boxplots (discussed in lecture 4)

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4
 Bar and pie charts Bar charts: example of UNSW
• Back to the UNSW survey example, create a bar and pie
charts
• Reduce numbers of classes for easily visual look
Number of inter. students at UNSW

Number of students Percentage 250

Nationality (frequency) frequency
200
Australia & NZ 180 26.24%

Frequency
150
China 120 17.49%
100
South East Asia 227 33.09%
50
India 11 1.60%
0
USA & Canada 14 2.04% Australia China South India USA & UK & Other Rest of
& NZ East Asia Canada Ireland Europe the world
UK & Ireland 35 5.10%
Other Europe 42 6.12%
Rest of the world 57 8.31%
Total 686 100.00% 25 26

Pie charts: example of UNSW Notes

 Choose charts that present information most

Percentage of inter.students at UNSW
8.31% effectively (‘Learning by doing’)
6.12%
5.10%  Practice with SPSS
26.24%
2.04%
1.60%

17.49%
33.09%

Australia & NZ China South East Asia India

USA & Canada UK & Ireland Other Europe Rest of the world

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Equal-width histograms
Histograms
 All bars have the same width (the same class intervals)
 Raw data => frequency table => histograms  The height of each bar represents the frequency or
percentage frequency of the class intervals
 A histogram looks like a bar charts except that  Using raw data in the example 4, draw a histogram
the bars are joined together representing wages
 Two types of histograms:
 Equal-width histogram
 Unequal-width histogram

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5
 Shapes of histograms – positive skew (long tail
Shapes of Histograms - symmetric
to right)

H i s togr a m of P os itiv e s k e w
Histogr a m of S y mme tr ic
35
50

30
40

25
30
Frequency

Frequency
20

20
15

10 10

5
0
-2.4 -1.6 -0.8 0.0 0.8 1.6 2.4
Sy mme t r ic 0
0 .0 1.5 3.0 4.5 6.0 7.5
Po s it iv e s ke w

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Shapes of histograms – negative skew (long tail

to left) Shapes of histograms - bimodal

Histogram of N egativ e skew Histogram of Bimodal

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30
20
25

15
Frequency
Frequency

20

15 10

10
5
5

0
0 -1.5 0.0 1.5 3.0 4.5 6.0
3.0 4.5 6.0 7.5 9.0 Bimodal
Nega t iv e ske w

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Histogram terms Histograms of COVID19 in the world

• Modal class – class with highest number of
• https://covid19.who.int/?gclid=EAIaIQobChMI
observations
8a‐
• Uni-modal, bi-modal, tri-modal, multi-modal
unPCH6wIVix0rCh3tQAogEAAYASAAEgJb5_D_
• Skewness, symmetry
BwE
• Relative frequency histogram: replace frequency
for each class by • Access data: 7/8/2020
class frequency/total number of obs.

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6
 Flattening COVID19 curve in Korea COVID19 curve in Vietnam

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Distribution of national HS exam scores 2018

Uni entrance exam

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Distribution of national HS exam scores 2018 Distribution of national HS exam scores 2018

7
Distribution of national HS exam scores 2018 Ogive
Instead of presenting cumulative percentage freq in the
FT, you can draw a graph.

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Practice with SPSS Bivariate distribution

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Investigating the relationship between variables Cross-table

• Methods: • Cross-table is used to investigate the relationship
– Table: Cross-table b/w two categorical vars or discrete variables with
– Charts: few values.
o Multiple bar chart • Note:
o Scatterplot (mentioned in lecture 8)
– Need to identify dependent and independent variables.
– Know how to calculate row and column percentages
– Rule of thumb: independent var in row and dependent
var in column

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8
 Cross-table Multiple bar chart
• EX: use gss.sav data file to explore the relationship • We can use multiple bar chart to explore the
b/w internet use and degree relationship b/w variables.
• The skill is to know how to draw chart
• EX: use gss.sav data file to explore the relationship
b/w internet use, age, and degree

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Multiple bar chat Summary

Here you are
Univariate distribution
• Table: Frequency distribution
- Simple frequency table
- Grouped frequency table
• Charts
- Bar and pie charts
- Histograms
Bivariate distribution

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