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Lec 02_ Organising Data(2)

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Powerpoint Slides for Lecture 2 Business Statistics
33
Chapter 2 Data Presentation 10/04/2 015 Outline Organize data into a frequency distribution. Graphical presentation: Histogram, frequency polygon, cumulative frequency polygon. Graphical techniques: line chart, bar chart and pie chart
Transcript
Page 1: Lec 02_ Organising Data(2)

Chapter 2 Data Presentation

10/04/2015

OutlineOrganize data into a frequency distribution.Graphical presentation: Histogram, frequency polygon, cumulative frequency polygon. Graphical techniques: line chart, bar chart

andpie chart

Page 2: Lec 02_ Organising Data(2)

Chapter 2 Data Presentation

10/04/2015Last Update: April 2007 Slide number 2

Recommended ReadingCustomised Text, Adapted from ‘Statistical Techniques in Business & Economics by Lind, Marchal 16th Edition’ McGraw Hill

Chapter 2

Page 17 - 49

Page 3: Lec 02_ Organising Data(2)

Frequency Distribution

A grouping of data into mutually exclusive classes

It shows the number of observations in each class

10/04/2015 Slide number 3

Page 4: Lec 02_ Organising Data(2)

Frequency Distribution - Terms

Class limits:Upper Limit: The highest possible value in a class

Lower limit: The lowest possible value in a class

10/04/2015 Slide number 4

Page 5: Lec 02_ Organising Data(2)

Frequency Distribution - Terms

Class midpoint:A point that divides a class into two equal parts. Thisis the average of the upper and lower class limits.

Class frequency:

The number of observations in each class.

Class interval: (Class Width)

The class interval is obtained by subtracting the lower limit of a class from the lower limit of the next class.

10/04/2015 Slide number 5

Page 6: Lec 02_ Organising Data(2)

Frequency Distribution – terms

Class Interval: 3.0-2.0= 1

EXAMPLE 1: Amount of rice sold (in ‘000 kg)

10/04/2015 Slide number 6

Class (amount sold

‘000 kg

Frequency (f) mid-point

2.0 - up to 3.0 1 (3+2)/2 = 2.5

3.0 - up to 4.0 0 3.5

4.0 - up to 5.0 2 4.5

5.0 - up to 6.0 8 5.5

6.0 - up to 7.0

5 6.5

7.0 - up to 8.0 4 7.5

Total 20

Page 7: Lec 02_ Organising Data(2)

Steps Decide on the number of classes Determine the class interval Set the individual class limits Tally the observations into the classes Count the number of items in each

class

Constructing a Frequency Distribution

10/04/2015 Slide number 7

Page 8: Lec 02_ Organising Data(2)

EXAMPLE 2

Dr. Tillman is Dean of the School of Business Socastee University. He wishes to prepare a report showing the number of hours per week students spend on studying. He selects a random sample of 30 students and determines the number of hours each student studied last week.

15.0, 23.7, 19.7, 15.4, 18.3, 23.0, 14.2, 20.8, 13.5,20.7, 17.4, 18.6, 12.9, 20.3, 13.7, 21.4, 18.3, 29.8,17.1, 18.9, 10.3, 26.1, 15.7, 14.0, 17.8, 33.8, 23.2,12.9, 27.1, 16.6.Organize these data into a frequency distribution.

10/04/2015 Slide number 8

Page 9: Lec 02_ Organising Data(2)

Step 1: Decide on the number of classes

2k> n

where k = number of classesn = number of observations

oThere are 30 observations so n=30.

o2 raised to the 5th power is 32.i.e. 25 = 32

oTherefore, we should have at least 5classes, i.e., k=5.

Construction a Frequency Distribution

10/04/2015 Slide number 9

Page 10: Lec 02_ Organising Data(2)

Step 2: Determine the class interval

i (Highest value - Lowest

value) Number of

classes

Construction a Frequency Distribution

i 33.8 - 10.3 4.7 5

5

.

10/04/2015 Slide number 10

Page 11: Lec 02_ Organising Data(2)

Step 3: Set the individual class limits

Ensure that the lower limit of the first class is smaller or equal than the smallest value and the upper limit of the last class is larger or equal to the largest value

Set the lower limit of the first class at 10 hours, giving a total of 5 classes.

Construction a Frequency Distribution

10/04/2015 Slide number 11

Page 12: Lec 02_ Organising Data(2)

EXAMPLE 10 continued

Interval= 5

Step 3: Set the individual class limits

10/04/2015 Slide number 12

Hours studying Frequency, f

10 up to 15

15 up to 20

20 up to 25

25 up to 30

30 up to 35

Page 13: Lec 02_ Organising Data(2)

EXAMPLE 10 continued

Step 4 & 5: Tally and Count the numbers in each class

10/04/2015 Slide number 13

Hours studying Frequency, f10 up to 15 715 up to 20 1220 up to 25 7

25 up to 30 3

30 up to 35 1

Page 14: Lec 02_ Organising Data(2)

Constructing a Frequency Distribution

10/04/2015 Slide number 14

Preferably between 5 – 15 classes If possible, the classes interval should be the same for

all classes The classes must be mutually exclusive, i.e. avoid

overlapping classes. Each data point must fall in only one class.

The classes must be all inclusive, i.e. the classes mustprovide a place to record every value in the data set.

Preferably no open-ended classes.open-ended classes: classes without lower or upper limit example: below 7.5 ; above 37.5

Page 15: Lec 02_ Organising Data(2)

A relative frequency distribution shows the percent of observations in each class.

Relative Frequency

10/04/2015 Slide number 15

Page 16: Lec 02_ Organising Data(2)

Relative Frequency Distribution

Relative Frequency = freq / freq

10/04/2015 Slide number 16

Hours f Relative Frequency

10 up to 15 7 7/30=.2333

15 up to 20 12 12/30=.400

20 up to 25 7 7/30=.2333

25 up to 30 3 3/30=.1000

30 up to 35 1 1/30=.0333

TOTAL 30 30/30=1

Page 17: Lec 02_ Organising Data(2)

Graphical Presentation of a FrequencyDistribution

Histograms Classes marked on the horizontal axis Frequency marked on the vertical axis Frequencies of each class are

represented by the height of the bars The bars are adjacent to each other

10/04/2015 Slide number 17

Page 18: Lec 02_ Organising Data(2)

Histogram for Hours Spent Studying

EXAMPLE 3

14

12

10

8

6

4

2

0

10/04/2015 Slide number 18

12.5 17.5 22.5 27.5

Hours spent studying

32.5

Fre

qu

ency

Page 19: Lec 02_ Organising Data(2)

Graphical Presentation of a FrequencyDistribution

Frequency Polygon mid-point of the classes are marked on

the horizontal axis Frequency marked on the vertical axis Line segments connect the points

that represent the frequencies of their respective classes.

10/04/2015 Slide number 19

Page 20: Lec 02_ Organising Data(2)

Frequency Polygon for Hours Spent Studying

141210

86420

7.5

12.5

17.5

22.5

27.5

32.5

Hours spent studying

Fre

qu

en

cy

EXAMPLE 4

10/04/2015 Slide number 20

Page 21: Lec 02_ Organising Data(2)

Cumulative Frequency

10/04/2015 Slide number 21

A cumulative frequency distribution is used to determine how many or what proportion of the data values are below or above a certain value.

The cumulative frequency of a particular class is found by adding the frequency of that class to the cumulative frequency of the previous class.

Page 22: Lec 02_ Organising Data(2)

Hours f Cumulative Frequency

(cf)

10 up to 15 7

15 up to 20 12

20 up to 25 7

25 up to 30 3

30 up to 35 1

TOTAL 30

Cumulative Frequency Distribution

7

19

2926+

10/04/2015 Slide number 22

30

EXAMPLE 5

Page 23: Lec 02_ Organising Data(2)

Constructing a Cumulative Frequency Polygon (Ogive)

• Scale the upper limit of the classes on theX-axis

• The cumulative frequency distribution is marked on the Y-axis

• The polygon cross the X-axis at the lower limitof the first class

10/04/2015 Slide number 23

Page 24: Lec 02_ Organising Data(2)

10/04/2015Last Update: April 2007

Constructing a Cumulative Frequency Polygon

x-axis y-axisFirst limit with Cum Freq = 0

Slide number 24

Hours f Cumulative Frequency

(cf)

10 up to 15 7 7

15 up to 20 12 19

20 up to 25 7 26

25 up to 30 3 29

30 up to 35 1 30

TOTAL 30

Page 25: Lec 02_ Organising Data(2)

Cumulative Frequency Polygon (OGIVE)For Hours Studying

About students spent less than 20 hours studying.19

35

30

25

2015

10

5

0

0

7

19

2629 30 30

10 15 20 25 3035

Hours Spent Studying

35

Cu

mu

late

d F

req

ue

ncy

10/04/2015 Slide number 25

Page 26: Lec 02_ Organising Data(2)

Cumulative Frequency Polygon For HoursStudying

About 86.6% of the 30 students studied for less than 25 hours

86.6% x 30 = 26 students

35

30

25

2015

10

5

0

0

7

19

2629 30 30

10 15 20 25 3035

Hours Spent Studying

35

Cu

mu

late

d F

req

ue

nc

y

10/04/2015 Slide number 26

Page 27: Lec 02_ Organising Data(2)

Slide number 27

10/04/2015

Cumulative Frequency Polygon For HoursStudying

About

15 20 25 30 35 35

Hours Spent Studying

students spent more than 25 hours studying.

4

Explanation: 26 students spent less than 25 hours,so we have 30 – 26 = 4 students spent more than25 hours

35

30

25

2015

10

5

0

0

7

19

2629 30 30

10

Cu

mu

late

d F

req

ue

ncy

Page 28: Lec 02_ Organising Data(2)

Other Graphical Presentation of Data

10/04/2015 Slide number 28

Line Graph used to show the change or trend in a

variable over time Bar Chart

depicts both the qualitative and quantitative data

Pie Chart is useful for displaying a relative frequency

distribution. A circle is divided proportionally to the relative frequency and portions of the circle are allocated for the different groups.

Page 29: Lec 02_ Organising Data(2)

Line Graph – EXAMPLE 6

3736353433323130292827

Med

ian

Age

U.S. median age by gender

Males

Females

10/04/2015 Slide number 29

Year Males Females

1992 30.5 32.91993 30.8 33.21994 31.1 33.51995 31.4 33.81996 31.6 34.01997 31.9 34.31998 32.2 34.61999 32.5 34.92000 32.8 35.22001 33.2 35.52002 33.5 35.8

Page 30: Lec 02_ Organising Data(2)

A bar chart for the number of unemployed per 100,000 population for selected cities during 2001

Bar Chart – EXAMPLE 7

7300

5400

6700

89008200

890010000

9000

8000

7000

6000

5000

4000

3000

2000

1000

01 2 3 4

Cities

5 6

# u

nem

plo

yed

/100

,000

Atlanta

Boston

Chicago Los

Angeles

New York

Washington

10/04/2015 Slide number 30

City No. of unemployed per 100,000 population

Atlanta, GA

7300

Boston, MA

5400

Chicago, IL

6700

Los Angeles, CA

8900

New York, NY

8200

Washington, D.C.

8900

Page 31: Lec 02_ Organising Data(2)

46%

24%

18%

7% 5%

# of runners

Nike Adidas Reebok AsicsOther

A sample of 200 runners were asked to indicate their favorite type of running shoe. Draw a pie chart based on the following information.

Pie Chart – EXAMPLE 8

10/04/2015 Slide number 31

Type of shoe

# of runners

% of total

Nike 92 46.0

Adidas

49 24.5

Reebok

37 18.5

Asics 13 6.5

Other 9 4.5

Page 32: Lec 02_ Organising Data(2)

Ethical Visual

10/04/2015Last Update: April 2007 Slide number 32

Page 33: Lec 02_ Organising Data(2)

Charts Examples

10/04/2015Last Update: April 2007 Slide number 33


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