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Descriptive Statistics

Chapter 3
Describing Data

Frequency Tables, Frequency


Distributions, and Graphical
Presentations
Chp3 : Learning Objectives

LO2-1 Summarize qualitative variables with frequency and relative frequency tables.

LO2-2 Display a frequency table using a bar or pie chart.

LO2-3 Summarize quantitative variables with frequency and relative frequency distributions.

LO2-4 Display a frequency distribution for quantitative data using histograms.


Ch 3 : Why Describe Data

• Data in raw form are usually not easy to use for decision
making

• Our goal is to build tables, charts, and graphs that will


quickly summarize and organize the data to show the
general shape of the data and where values tend to focus
and to discover extreme or unusual data values.

• The first procedure we discuss to organize and summarize


a set of Qualitative data in a Frequency table. Then how
to plot the bar and pie charts.

• Second, the procedure we discuss to organize and


summarize a set of Quantitative data in a Frequency
Distribution table. Then how to plot Histogram.
Ch 3 : Describing Data

Data

Qualitative Data Quantitative Data


(non-numeric) (numeric)

Frequency Distribution
Frequency Tables
Tables

Bar Chart Pie Chart Histogram


Ch 3 : Why Use a Frequency Tabes?

• It is a way to summarize numerical data.


• It compresses the raw data into a more useful form.
• It allows for a quick visual interpretation of the data.
Ch 3 : Describing Data

Example from the book P19


The Applewood Auto Group operates four dealerships:

Tionesta Ford Lincoln sells Ford and Lincoln cars and trucks.

Olean Automotive Inc. has the Nissan franchise as well as the General Motors brands of Chevrolet,

Cadillac, and GMC trucks.

Sheffield Motors Inc. sells Buick, GMC trucks, Hyundai, and Kia.

Kane Motors offers the Chrysler, Dodge, and Jeep line as well as BMW and Volvo.

The variables collected include:

Age—the age of the buyer at the time of the purchase.

Profit—the amount earned by the dealership on the sale of each vehicle.

Location—the dealership where the vehicle was purchased.

Vehicle type—SUV, sedan, compact, hybrid, or truck.


Previous—the number of vehicles previouslypurchased at any of the four Applewooddealerships by the
consumer.
Ch 3 : Constructing Frequency Tables

FREQUENCY TABLE: A grouping of qualitative data into non-overlapping classes (mutually exclusive
classes or categories) showing the number of observations in each class.
Ch 3: Relative Class Frequencies

A relative frequency captures the relationship between a class frequency and the total number of
observations to show the fraction of the total number of observations in each class.

To know the percentage of total cars sold at each of the four locations we convert a frequency table to a
relative frequency table, each of the class frequencies is divided by the total number of observations.

The fraction of vehicles sold last month at the Kane location is 0.289, found by 52 divided by 180. The relative
frequency for each location is shown below.

Relative Frequency Table of Vehicles Sold by Location Last Month at Applewood Auto Group
Ch 3 : Graphical Presentation of Qualitative Data

BAR CHART A graph that shows the qualitative classes on the horizontal axis and the class frequencies on
the vertical axis.

• We use a bar chart when we wish to compare the number of


observations for each class of a qualitative variable.

• The class frequencies are proportional to the heights of the


bars.

• Bar charts are used for Qualitative data.

• There is distance or a gap between the bars. That is, because


the variable of interest is qualitative, the bars are not adjacent
to each other.
Ch 3 : Graphical Presentation of Qualitative Data

Location # of Cars
Kane 52
Olean 40
Sheffield 45
Tionesta 43
Grand Total 180

Frequency Number of Cars Sold by


‫تكرارات‬ Location
60

40

20

0
Class ‫فئات‬ Kane Olean Sheffield Tionesta
Ch 3 : Graphical Presentation of Qualitative Data

PIE CHART A chart that shows the proportion or percentage that each class represents of the total
number of frequencies.

• Pie charts are used to show and compare the relative


differences in the percentage of observations for each value
or class of a qualitative variable.

• Example:
Because each slice of the pie represents the relative frequency
of each vehicle type as a percentage of the total sales, we can
easily compare them:
• The largest percentage of sales is sedans.
• Sedans and SUVs together account for 70% of vehicle sales.
• Hybrids account for 5% of vehicle sales.
Ch 3 : Constructing Frequency Tables

• Mutually exclusive means the data fit in just one class.


• When putting them into groups they should be non-overlapping = “Mutually Exclusive” =‫متنافية‬
“Mutually Exclusive” is a statistical term describing two or more events that cannot both happen
simultaneously. It is commonly used to describe a situation where the occurrence of one outcome
overtakes the other.
Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 1: Determine the number of class.


Step 2: Determine the class interval or width.

Step 3: Set the individual class limits.

Step 4: Tally the data into classes.

Step 5: Count the number of items in each class.


Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 1: Determine how many class you need.


Using the rule 2k > n
• The number of classes k
• n is the number of values in the data set

such that 2k should be greater than the number of observations (n)

Example:

If n=180

2k > 180, if we let k = 8


Then we use 8 classes
Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 2: Determine the class interval or width

• The formula is:

• Where i is the class interval, Maximum Value is the


highest observed value, Minimum Value is the
lowest observed value, and k is the number of
classes.

Example:

• Round up to some convenient number


• So we decide to use an interval of $400
• The interval is also referred to as the class width
Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 3: Set the individual class limits.

• Lower limits should be rounded to an easy-to-read number when


possible

Example

• Here the minimum value of $294 goes in the first class and the
maximum value of $3,292 will go in the last class.
Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 4: Tally the individual data into the classes and determine the number of observations in each class.

• The number of observations is the class frequency.


• There is some loss of detail when data is grouped, but the frequency distribution results in an
understandable and organized form.
• Equal class widths are preferred but might not always be possible.

Example
Ch 3 : Steps in Constructing Grouped Frequency Distribution

Step 5: Count the number of items in each class.

Observe the following:


• The profits from vehicle sales range between $200 and $3,400.
• The vehicle profits are classified using a class interval of $400. The class
interval is determined by subtracting consecutive lower or upper class
limits.
• The profits are concentrated between $1,000 and $3,000.
• For each class, we can determine the typical profit or class midpoint. It is
halfway between the lower or upper limits of two consecutive classes.
• The largest concentration, or highest frequency, of vehicles sold is in the
$1,800 up to $2,200 class. There are 45 vehicles in this class. The class
midpoint is $2,000. So we say that the typical profit in the class with the
highest frequency is $2,000.
Ch 3 : Graphical Presentation of a Frequency Distribution

HISTOGRAM A graph in which the classes are marked on the horizontal axis and the class frequencies on
the vertical axis.

• The class frequencies are represented by the


heights of the bars, and the bars are drawn
adjacent to each other.

• A histogram shows the shape of a distribution.

• A histogram is used for Quantitative data.

• Each class is depicted as a rectangle, with the


height of the bar representing the number in each
class
Ch 3 : Cumulative Frequency Distributions

• To construct a cumulative frequency distribution, add each frequency to the frequencies before it.

• This shows how many values have accumulated as you move from one class down to the next class
Ch 3 : Cumulative Relative Frequency Distribution

• To construct a cumulative relative frequency distribution, we divide the cumulative frequencies by


the total number of observations.

• As shown in the table, the cumulative relative frequency of the fourth class is 80/180 = 44%.

• This means that 44% of the vehicles sold for less than $1,800.
Ch 3 : Definitions

• Class Frequency: The number of observations in each class.


• Class Interval: The class interval is obtained by subtracting the lower limit of a class from the lower
limit of the next class.
• Relative Frequency: obtained by dividing the frequency in each category by the total number of
observations.
• Class Midpoint: A point that divides a class into two equal parts. This is the average of the upper
- and lower-class limits.
• (Lower limit + Upper limit)/2

Class Midpoints
Questions ?

End of Chapter 3

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