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Learning Objectives
In this chapter you learn:
Data in raw form are usually not easy to use for decision making
Table Graph
Bar charts and pie charts Ordered array Stem-and-leaf display Frequency distributions, histograms and polygons Cumulative distributions and ogives Contingency tables Scatter diagrams
Tabulating Data
Graphing Data
Summary Table
Bar Charts
Pie Charts
Pareto Diagram
Bar charts and Pie charts are often used for qualitative data (categories or nominal scale)
Height of bar or size of pie slice shows the frequency or percentage for each category
Percentage
(%)
Investor's Portfolio
10
20
30
40
50
Amount in $1000's
Percentage
(%)
Bonds 29%
Pareto Diagram
Used to portray categorical data (nominal scale) A bar chart, where categories are shown in descending order of frequency A cumulative polygon is often shown in the same graph
Ordered Array
Stem-and-Leaf Display
Histogram
Polygon
Ogive
Data in raw form (as collected): 24, 26, 24, 21, 27, 27, 30, 41, 32, 38
Data in ordered array from smallest to largest: 21, 24, 24, 26, 27, 27, 30, 32, 38, 41
Stem-and-Leaf Diagram
A simple way to see distribution details in a data set METHOD: Separate the sorted data series into leading digits (the stem) and the trailing digits (the leaves)
Example
Data in ordered array:
21, 24, 24, 26, 27, 27, 30, 32, 38, 41
21 is shown as 38 is shown as
2 3
1 8
41 is shown as
Example
(continued)
2 3 4
1 4 4 6 7 7 0 2 8 1
Leaf
6
7 12
1
8 2
9
10 11 12
13368
356 47 2
A frequency distribution is a list or a table containing class groupings (ranges within which the data fall) ... and the corresponding frequencies with which data fall within each grouping or category
It is a way to summarize numerical data It condenses the raw data into a more useful form... It allows for a quick visual interpretation of the data
Each class grouping has the same width Determine the width of each interval by
range Width of interval number of desired class groupings
Usually at least 5 but no more than 15 groupings Class boundaries never overlap Round up the interval width to get desirable endpoints
Find range: 58 - 12 = 46
Class
Frequency
Relative Frequency
Percentage
10 but less than 20 20 but less than 30 30 but less than 40 40 but less than 50 50 but less than 60 Total
3 6 5 4 2 20
15 30 25 20 10 100
Class 10 but less than 20 20 but less than 30 30 but less than 40
Frequency Percentage 3 6 5 15 30 25
4
2 20
20
10 100
18
20
90
100
Bars of the appropriate heights are used to represent the number of observations within each class
Histogram Example
Class 10 but less than 20 20 but less than 30 30 but less than 40 40 but less than 50 50 but less than 60 Class Midpoint Frequency 15 25 35 45 55 3 6 5 4 2
Frequency
5 4 3 2 1 0 5 15 25 35 45 55 65
(In a percentage polygon the vertical axis would be defined to show the percentage of observations per class)
Class Midpoints
100 80 60 40 20 0 10 10 20 20 30 30 40 40 50 50 60 60
Investment Category
55 44 20 28
129 95 49 51
Total
110.0
147
67.0
324
(Individual values could also be expressed as percentages of the overall total, percentages of the row totals, or percentages of the column totals)
Scatter Diagrams
Scatter Diagrams are used to examine possible relationships between two numerical variables
The Scatter Diagram: one variable is measured on the vertical axis and the other variable is measured on the horizontal axis
29
33 38 41
151
160 167 185
140
42
50 55 60
170
188 195 200
A Time Series Plot is used to study patterns in the values of a variable over time
The Time Series Plot: one variable is measured on the vertical axis and the time period is measured on the horizontal axis
Year
1996
1997 1998 1999 2000 2001 2002
43
Number of Franchises
54 60 73 82 95 107
2003
2004
99
95