STATISTICS FOR

BUSINESS DECISIONS
HISTOGRAM
• A histogram is an approximate representation of
the distribution of numerical data. It is the simple
way of presenting graphically a frequency
distribution.
• It is a two dimensional diagram. It is a set of
rectangles with base as the intervals between
class boundaries and with area proportional to
the class frequency.
• Histogram was first introduced by Karl Pearson
1895.
• Histograms plot quantitative data with ranges of
the data grouped into intervals.
 PURPOSE OF HISTOGRAM
• To roughly assess the probability distribution of
a given variable by depicting the frequencies of
observations in certain range.
• To easily understand the data and make it
comfortable for analysis.
• Summarise large data sets in graphically.
• It is useful for statistical purpose.
• Histogram also useful to know trends.
• It is one of the seven basic tools of quality
control.
• Communicate information to team.
• To assist in decision making.
• To see if there is any variations.
• To predict relative frequency of the
occurrence
• Easily we can calculate mode, highest value
and lowest value.
 ADVANTAGES
 Simplicity and versatility
 Visually strong
 Good for decision making
 Easy to interpret
 Reveals shape, variation, mode of the given
data.
 Less time to analyse the data.
 LIMITATIONS

 More difficult to compare two data sets

 Cannot read exact values because it is
grouped.
 Use with the data having intervals (frequency
data)
THANK YOU