Business Statistics, 5th ed.

by Ken Black

Discrete Distributions

Chapter 2 Charts & Graphs

PowerPoint presentations prepared by Lloyd Jaisingh, Morehead State University

Learning Objectives
Recognize the difference between grouped and ungrouped data Construct a frequency distribution Construct a histogram, a frequency polygon, an ogive, a pie chart, a stem and leaf plot, a Pareto chart, and a scatter plot

Ungrouped Versus Grouped Data

Ungrouped data
have not been summarized in any way are also called raw data

Grouped data
have been organized into a frequency distribution

Example of Ungrouped Data

42 30 53 26 58 40 32 37 30 34 50 47 57 30 49

50
52 30 55

40
28 36 30

32
23 32 58

31
35 26 64

40
25 50 52

Ages of a Sample of Managers from Urban Child Care Centers in the United States

49
61 74

33
31 37

43
30 29

46
40 43

32
60 54

Frequency Distribution of Child Care Managers Ages

Class Interval 20-under 30 30-under 40 40-under 50 50-under 60 60-under 70 70-under 80 Frequency 6 18 11 11 3 1

Data Range
42 30 53 50 52 30 55 49 61 74 26 58 40 40 28 36 30 33 31 37 32 37 30 32 23 32 58 43 30 29 34 50 47 31 35 26 64 46 40 43 57 30 49 40 25 50 52 32 60 54

Range = Largest - Smallest = 74 - 23 = 51

Smallest

Largest

Note: One can order the data values from smallest to largest to help find the range.

Number of Classes and Class Width

The number of classes should be between 5 and 15.
Fewer than 5 classes cause excessive summarization. More than 15 classes leave too much detail.

Class Width
Divide the range by the number of classes for an approximate class width Round up to a convenient number So if the number of classes is 6, then

51 Approximate Class Width = = 8.5 6 Class Width = 10

Class Midpoint
The midpoint of each class interval is called the class midpoint or the class mark.
beginning class endpoint + ending class endpoint Class Midpoint = 2 30 + 40 = 2 = 35
1 Class Midpoint = class beginning point + class width 2 1 = 30 + 10 2 = 35

Relative Frequency
The relative frequency is the proportion of the total frequency that is any given class interval in a frequency distribution.

Class Interval 20-under 30 30-under 40 40-under 50 50-under 60 60-under 70 70-under 80 Total

Relative Frequency Frequency 6 .12 6 18 .36 50 11 .22 18 11 .22 50 3 .06 1 .02 50 1.00

Cumulative Frequency
The cumulative frequency is a running total of frequencies through the classes of a frequency distribution. Cumulative Class Interval Frequency Frequency 20-under 30 6 6 18 + 6 30-under 40 18 24 11 + 24 40-under 50 11 35 50-under 60 11 46 60-under 70 3 49 70-under 80 1 50 Total 50

Class Midpoints, Relative Frequencies, and Cumulative Frequencies

Relative Cumulative Class Interval Frequency Midpoint Frequency Frequency 20-under 30 6 25 .12 6 30-under 40 18 35 .36 24 40-under 50 11 45 .22 35 50-under 60 11 55 .22 46 60-under 70 3 65 .06 49 70-under 80 1 75 .02 50 Total 50 1.00

Cumulative Relative Frequencies

The cumulative relative frequency is a running total of the relative frequencies through the classes of a frequency distribution. Cumulative Relative Cumulative Relative Class Interval Frequency Frequency Frequency Frequency 20-under 30 6 .12 6 .12 30-under 40 18 .36 24 .48 40-under 50 11 .22 35 .70 50-under 60 11 .22 46 .92 60-under 70 3 .06 49 .98 70-under 80 1 .02 50 1.00 Total 50 1.00

Common Statistical Graphs

Histogram -- vertical bar chart of frequencies Frequency Polygon -- line graph of frequencies Ogive -- line graph of cumulative frequencies Pie Chart -- proportional representation for categories of a whole Stem and Leaf Plot Pareto Chart Scatter Plot

Histogram
Class Interval Frequency 20-under 30 6 30-under 40 18 40-under 50 11 50-under 60 11 60-under 70 3 70-under 80 1

20
18

20

15
Frequency

11

11

10

10

5
3 1

20

30

40

50 Years

60

70

80

Histogram Construction
Class Interval Frequency 20-under 30 6 30-under 40 18 40-under 50 11 50-under 60 11 60-under 70 3 70-under 80 1

20
18

20

15
Frequency

11

11

10

10

5
3 1

20

30

40

50 Years

60

70

80

Frequency Polygon
Class Interval Frequency 20-under 30 6 30-under 40 18 40-under 50 11 50-under 60 11 60-under 70 3 70-under 80 1

20

15

Frequency

10

10

20

30

40

50 Years

60

70

80

90

Ogive
Class Interval 20-under 30 30-under 40 40-under 50 50-under 60 60-under 70 70-under 80 Cumulative Frequency 6 24 35 46 49 50
50

40

Frequency

30

20

10

20

30

40

50 Years

60

70

80

Relative Frequency Ogive

Class Interval 20-under 30 30-under 40 40-under 50 50-under 60 60-under 70 70-under 80 Cumulative Relative Frequency .12 .48 .70 .92 .98 1.00

1.0

Cumulative Relative Frequency

0.8

0.6

0.4

0.2

0.0

10

20

30

40

50 Years

60

70

80

90

Complaints by Amtrak Passengers

COMPLAINT Stations, etc. Train Performance Equipment Personnel Schedules, etc. Total NUMBER 28,000 14,700 10,500 9,800 7,000 PROPORTION .40 .21 .15 .14 .10 DEGREES 144.0 75.6 50.4 50.6 36.0

70,000

1.00

360.0

Complaints by Amtrak Passengers

Personnel 14% Equipment 15% Schedules, Etc. 10%

Train Performance 21%

Stations, Etc. 40%

Second Quarter Truck Production in the U.S. (Hypothetical values)

Company A B C

2d Quarter Truck Production 357,411 354,936 160,997

D
E Totals

34,099
12,747 920,190

Second Quarter U.S. Truck Production

17% 4% 1%

39% 39%

Pie Chart Calculations for Company A

2d Quarter Truck Production 357,411

Company A

Proportion .388

Degrees 140

B
C D E

357, 411 = 920,190

354,936
160,997 34,099 12,747 920,190

.386
.175

139
63 13 5 360

.388 360 = .037

.014 1.000

Totals

Safety Examination Scores for Plant Trainees

Raw Data
86 76 77 92 91 47 60 88 55 67

Stem 2 3 4 3 9 79

Leaf

23
77 81 79 68

59
68 75 83 49

72
82 74 70 56

75
97 39 78 94

83
89 67 91 81

5
6 7 8 9

569
07788 0245567789 11233689 11247

Construction of Stem and Leaf Plot

Raw Data
86 76 23 77 77 92 59 68 91 47 72 82 60 88 75 97 55

Stem

Leaf 3 9 79 569 07788

Stem
67 83

2 3 4 5

Leaf
67
91 81

89

81
79 68

75
83 49

74
70 56

39

Stem 78
94 Leaf

7
8 9

0245567789
11233689 11247

Pareto Chart
100 100

80

80

40

40

20

20

Type of Defect Count Percent Cum %

Poor wiring 40 40.0 40.0

Short in the Coil 30 30.0 70.0

Defective Plug 25 25.0 95.0

Other 5 5.0 100.0

Percent

Count

60

60

Scatter Plot

140

Gasoline Sales (1000s of gallo

120 100 80 60 40 20 0

6 8 10 12 Registered Vehicles (1000s)

14

16

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