Bridge course

Descriptive Statistics:
Tabular and Graphical
Methods and Descriptive
Analytics

2-1
 Descriptive Statistics

Graphically Summarizing Qualitative Data

Graphically Summarizing Quantitative Data
Contingency Tables
Scatter Plots
Descriptive Analytics (Optional)

2-2
• Learning Objective
2-1: Summarize
qualitative data by
using frequency
distributions, bar
2.1 Graphically Summarizing
Qualitative Data
charts, and pie
charts.

• With qualitative data, names identify the

different categories
• This data can be summarized using a
frequency distribution
• Frequency distribution: A table that
summarizes the number of items in each of
several non-overlapping classes

2-3
• Learning Objective
2-1: Summarize
qualitative data by
using frequency
distributions, bar
Example 2.1: Describing
Pizza Preferences
charts, and pie
charts.

• Table 2.1 lists pizza preferences of 50

college students
• Table 2.1 does not reveal much useful
information
• A frequency distribution is a useful
summary

2-4
 Tables 2.1 Pizza Preferences of
• Learning Objective
2-1: Summarize
qualitative data by

50 College Students (Excel

using frequency
distributions, bar
charts, and pie
charts.

Sheet 1)

Pizza Hut Domino's Papa John's Pizza Hut Will's Uptown

Bruno's Little Caesars Domino's Pizza Hut Will's Uptown
Domino's Will's Uptown Papa John's Pizza Hut Will's Uptown
Bruno's Little Caesars Will's Uptown Domino's Will's Uptown
Will's Uptown Little Caesars Papa John's Pizza Hut Will's Uptown
Pizza Hut Pizza Hut Papa John's Pizza Hut Will's Uptown
Bruno's Domino's Pizza Hut Will's Uptown Will's Uptown
Domino's Little Caesars Papa John's Will's Uptown Will's Uptown
Domino's Domino's Will's Uptown Will's Uptown Will's Uptown
Pizza Hut Pizza Hut Pizza Hut Will's Uptown Little Caesars

2-5
 Tables 2.2 A Frequency
• Learning Objective
2-1: Summarize
qualitative data by

Distribution of Pizza
using frequency
distributions, bar
charts, and pie
charts.

Preferences

Restaurant Frequency

Bruno's 3

Domino's 8

Little Caesars 4

Papa John's 6

Pizza Hut 12

Will's Uptown 17

Grand Total 50

2-6
• Learning Objective

Relative Frequency and

2-1: Summarize
qualitative data by
using frequency
distributions, bar

Percent Frequency
charts, and pie
charts.

• Relative frequency summarizes the

proportion of items in each class
• For each class, divide the frequency of the
class by the total number of observations
• Multiply times 100 to obtain the percent
frequency

2-7
• Learning Objective
2-1: Summarize
qualitative data by Table 2.3 Percent Relative Frequency
using frequency
distributions, bar
charts, and pie
and Frequency Distributions for the
Pizza Preference Data
charts.

Relative Percent
Restaurant
Frequency Frequency
Bruno's 3 0.06
Domino's 8 0.16
Little Caesars 4 0.08
Papa John's 6 0.12
Pizza Hut 12 0.24
Will's Uptown 17 0.34

1 or 100%

2-8
• Learning Objective
2-1: Summarize
qualitative data by

Bar Charts and Pie Charts

using frequency
distributions, bar
charts, and pie
charts.

• Bar chart: A vertical or horizontal

rectangle represents the frequency for each
category
– Height can be frequency, relative frequency,
or percent frequency
• Pie chart: A circle divided into slices where
the size of each slice represents its relative
frequency or percent frequency

2-9
 Figures 2.1 Excel Bar and Pie
• Learning Objective
2-1: Summarize
qualitative data by

Chart of the Pizza Preference

using frequency
distributions, bar
charts, and pie
charts.

Data

18

16
Restaurant Frequency 14
Bruno's 3 12
Domino's 8 10
Little Caesars 4 17
Papa John's 6 8
Total
Pizza Hut 12 6 12

Will's Uptown 17 4 8
6
2 4
3
0
's t
no o's rs
hn
's
Hu wn
ru in sa o to
e J za p
B
Do
m Ca pa Pi
z s
U
ttl
e
Pa ill'
Li W

2-10
 Figures 2.3 Excel Bar and Pie
• Learning Objective
2-1: Summarize
qualitative data by

Chart of the Pizza Preference

using frequency
distributions, bar
charts, and pie
charts.

Data

Chart Title

100.00%

2-11
• Learning
Objective 2-2:
Construct and
interpret Pareto
charts
(Optional).
Pareto Chart

• Pareto chart: A bar chart having the

different kinds of defects listed on the
horizontal scale
• Bar height represents the frequency of
occurrence
• Bars are arranged in decreasing height
from left to right
• Sometimes augmented by plotting a
cumulative percentage point for each bar

2-12
• Learning
Objective 2-2:
Figure 2.4 Excel Frequency
Construct and
interpret Pareto Table and Pareto Chart of
Labeling Defects (1 of 2) (Excel
charts
(Optional).

sheet 2)
Frequency Table

Type of Defect Frequency Percent Cum. Percent

Crooked label 78 36.97% 37.0%

Missing Label 45 21.33% 58.3%

Printing Error 33 15.64% 73.9%

Loose Label 23 10.90% 84.8%

Wrinkled Label 14 6.64% 91.5%

Smudged Label 6 2.84% 94.3%

Other 12 5.69% 100.0%

Total 211 100%

2-13
 Figure 2.4 Excel Frequency
• Learning
Objective 2-2:
Construct and
interpret Pareto
charts
(Optional).
Table and Pareto Chart of
Labeling Defects (2 of 2)

2-14
• Learning Objective
2-3 Summarize
quantitative data
by using frequency
distributions,
2.2 Graphically Summarizing
Quantitative Data
histograms,
frequency
polygons, and
ogives.

• Often need to summarize and describe the

shape of the distribution
• One way is to group the measurements into
classes of a frequency distribution
• After grouping them, we can display the
data in the form of a histogram

2-15
• Learning Objective
2-3 Summarize
quantitative data

Frequency Distribution
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

• A frequency distribution is a list of data

classes with the count of values that belong
to each class
– “Classify and count”
– The frequency distribution is a table
• Show the frequency distribution in a
histogram
– The histogram is a picture of the frequency
distribution

2-16
• Learning Objective

Constructing a Frequency
2-3 Summarize
quantitative data
by using frequency
distributions,

Distribution
histograms,
frequency
polygons, and
ogives.

1. Find the number of classes

2. Find the class length
3. Form non-overlapping classes of equal
width
4. Tally and count
5. Graph the histogram

2-17
• Learning Objective
2-3 Summarize
quantitative data
Example 2.2 The e-billing
Case: Reducing Bill Payment
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives. Times(Excel exercise 3)
A Sample of Payment Time(in Days) for 65
Randomly Selected invoices

22 29 16 15 18 17 12 13 17 16 15

19 17 10 21 15 14 17 18 12 20 14

16 15 16 20 22 14 25 19 23 15 19

18 23 22 16 16 19 13 18 24 24 26

13 18 17 15 24 15 17 14 18 17 21

16 21 25 19 20 27 16 17 16 21

2-18
• Learning Objective
2-3 Summarize
quantitative data

Number of Classes
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

• Group all of the n data into K number of

classes
• K is the smallest whole number for which 2k
is greater than or equal to n
• In Examples 2.2 n = 65
– For K = 6, 26  64,  n
– For K = 7, 27  128,  n
– So use K = 7 classes

2-19
• Learning Objective
2-3 Summarize
quantitative data

Class Length
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

• Find the length of each class as the largest

measurement minus the smallest divided
by the number of classes found earlier (K)
• For Example 2.2,
 29  10  2.7143
7
– Because payments measured in days, round
to three days

2-20
• Learning Objective
2-3 Summarize
quantitative data
by using frequency
distributions,
Form Non-Overlapping Classes
of Equal Width
histograms,
frequency
polygons, and
ogives.

• The classes start on the smallest value

– This is the lower limit of the first class
• The upper limit of the first class is smallest
value + class length
– In the example, the first class starts at 10
days and goes up to 13 days
• The next class starts at this upper limit and
goes up by class length
• And so on

2-21
• Learning Objective
2-3 Summarize
quantitative data
by using frequency
distributions,
Table 2.6 Form Non-Overlapping
Classes of Equal Width
histograms,
frequency
polygons, and
ogives.

Class 1 10 days and less than 13 days

Class 2 13 days and less than 16 days

Class 3 16 days and less than 19 days

Class 4 19 days and less than 22 days

Class 5 22 days and less than 25 days

Class 6 25 days and less than 28 days

Class 7 28 days and less than 31 days

2-22
• Learning Objective
2-3 Summarize
quantitative data
by using frequency
distributions,
Tally and Count the Number of
Measurements in Each Class
histograms,
frequency
polygons, and
ogives.

2-23
• Learning Objective
2-3 Summarize
quantitative data

Histogram
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

• Rectangles represent the classes

• The base represents the class length
• The height represents
– The frequency in a frequency histogram, or
– The relative frequency in a relative
frequency histogram

2-24
• Learning Objective
2-3 Summarize
quantitative data

Figures 2.7 Histograms

by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

A Frequency Histogram of the 65 Payment Times

2-25
• Learning Objective
2-3 Summarize
quantitative data

Figures 2.8 Histograms

by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

A Percent Frequency Histogram of the 65 Payment

Times

2-26
• Learning Objective

Some Common Distribution

2-3 Summarize
quantitative data
by using frequency
distributions,

Shapes
histograms,
frequency
polygons, and
ogives.

• Skewed to the right: The right tail of the

histogram is longer than the left tail
• Skewed to the left: The left tail of the
histogram is longer than the right tail
• Symmetrical: The right and left tails of the
histogram appear to be mirror images of
each other

2-27
• Learning Objective

Figures 2.10 Skewed

2-3 Summarize
quantitative data
by using frequency
distributions,

Distribution
histograms,
frequency
polygons, and
ogives.

Right Skewed

2-28
• Learning Objective

Figures 2.11 Skewed

2-3 Summarize
quantitative data
by using frequency
distributions,

Distribution
histograms,
frequency
polygons, and
ogives.

Left skewed

2-29
• Learning Objective
2-3 Summarize
quantitative data

Frequency Polygons
by using frequency
distributions,
histograms,
frequency
polygons, and
ogives.

• Plot a point above each class midpoint at a

height equal to the frequency of the class
• Useful when comparing two or more
distributions

2-30
• Learning Objective

Figure 2.12 Frequency

2-3 Summarize
quantitative data by
using frequency
distributions,
histograms,
frequency polygons,
and ogives.
Polygons

2-31
• Learning Objective
2-3 Summarize
quantitative data by

Cumulative Distributions
using frequency
distributions,
histograms,
frequency polygons,
and ogives.

• Another way to summarize a distribution is

to construct a cumulative distribution
• To do this, use the same number of
classes, class lengths, and class boundaries
used for the frequency distribution
• Rather than a count, we record the number
of measurements that are less than the
upper boundary of that class
– In other words, a running total

2-32
• Learning Objective

Table 2.10 Various

2-3 Summarize
quantitative data by
using frequency
distributions,
histograms,
frequency polygons,
and ogives.
Frequency Distribution
A Frequency Distribution, Cumulative Frequency
Distribution, Cumulative Relative Frequency
Distribution, and Cumulative Percent Frequency
Distribution for the Payment Time Data
(5)
(3) (4)
(1) (2) Cumulative
Cumulative Cumulative Relative
Class Frequency Percent
Frequency Frequency
Frequency
10 < 13 3 3 3/65 = .0462 4.62%
13 < 16 14 17 17/65 =.2615 26.15
16 < 19 23 40 0.6154 61.54
19 < 22 12 52 0.6 80
22< 25 8 60 0.9231 92.31
25 < 28 4 64 0.9846 98.46
28 < 31 1 65 1 100
2-33
• Learning Objective
2-3 Summarize
quantitative data by

Ogive
using frequency
distributions,
histograms,
frequency polygons,
and ogives.

• Ogive: A graph of a cumulative distribution

• Plot a point above each upper class
boundary at height of cumulative frequency
• Connect points with line segments
• Can also be drawn using:
– Cumulative relative frequencies
– Cumulative percent frequencies

2-34
• Learning Objective
2-3 Summarize
quantitative data by

Figure 2.14 Ogive

using frequency
distributions,
histograms,
frequency polygons,
and ogives.

2-35
Excel exercise 4
Market Research Case
Suppose 60 randomly
selected shoppers have rated
a new bottle design for the
popular soft drink. The data
is given in excel sheet
(Exercise 2.18)

2-36
• Learning

Table 2.14 Car Mileage

Objective 2-5
Construct and
interpret stem-

Example (Practice Question)

and-leaf
displays.

A Sample of 50 Mileages for a New Midsize

Model
30.8 30.8 32.1 32.3 32.7

31.7 30.4 31.4 32.7 31.4

30.1 32.5 30,8 31.2 31.8

31.6 30.3 32.8 30.7 31.9

32.1 31.3 31.9 31.7 33,0

33.3 32,1 31.4 31.4 31.5

31.3 32.5 32.4 32.2 31.6

31.0 31.8 31.0 31.5 30.6

32.0 30,5 29.8 31.7 32.3

32.4 30,5 31.1 30.7 31.4

2-37
• Learning
Objective 2-6

2.5 Contingency Tables

Examine the
relationships
between

(Optional)
variables by using
contingency
tables. (Optional)

• Classifies data on two dimensions

– Rows classify according to one dimension
– Columns classify according to a second
dimension
• Requires three variable
– The row variable
– The column variable
– The variable counted in the cells

2-38
• Learning
Objective 2-6
Examine the
Table 2.17 Bond Fund
Satisfaction Survey (Excel
relationships
between
variables by using
contingency
tables. (Optional)
exercise 5)
A cross tabulation Table of Fund type versus
Level of Client Satisfaction
Fund Type High Medium Low Total

Bond Fund 15 12 3 30

Stock Fund 24 4 2 30

Tax Deferred Annuity 1 24 15 40

Total 40 40 20 100

2-39
• Learning

More on Crosstabulation
Objective 2-6
Examine the
relationships
between

Tables
variables by using
contingency
tables. (Optional)

• Row totals provide a frequency distribution

for the different fund types
• Column totals provide a frequency
distribution for the different satisfaction
levels
• Main purpose is to investigate possible
relationships between variables

2-40
• Learning
Objective 2-6
Examine the

Types of Variables
relationships
between
variables by using
contingency
tables. (Optional)

• In the bond fund example, we

crosstabulated two qualitative variables
• Can use a quantitative variable versus a
qualitative variable or two quantitative
variables
• With quantitative variables, often define
categories

2-41
• Learning
Objective 2-7
Examine the
relationships
between
2.6 Scatter Plots (Excel exercise
variables by
using scatter 6)
plots (Optional).

• Used to study relationships between two

variables
• Place one variable on the x-axis
• Place a second variable on the y-axis
• Place dot on pair coordinates

2-42
• Learning
Objective 2-7
Examine the
relationships
between
variables by
Types of Relationships
using scatter
plots (Optional).

• Linear: A straight line relationship between

the two variables
– Positive: When one variable goes up, the
other variable goes up
– Negative: When one variable goes up, the
other variable goes down
• No linear relationship: There is
no coordinated linear movement
between the two variables

2-43
• Learning

Figure 2.24 Types of

Objective 2-7
Examine the
relationships
between
variables by
using scatter
plots (Optional).
Relationships

2-44