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ECO2004_Ch2

Chapter 2 discusses methods for describing data using tables and graphs, including frequency tables for qualitative and quantitative data. It explains how to create relative frequency distributions, bar charts, pie charts, histograms, and frequency polygons. The chapter provides examples and steps for constructing these visual representations to analyze and interpret data effectively.

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5 views7 pages

ECO2004_Ch2

Chapter 2 discusses methods for describing data using tables and graphs, including frequency tables for qualitative and quantitative data. It explains how to create relative frequency distributions, bar charts, pie charts, histograms, and frequency polygons. The chapter provides examples and steps for constructing these visual representations to analyze and interpret data effectively.

Uploaded by

emily071919
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2.

Describing data using tables and graphs

1. Constructing a frequency table

1) Frequency table
• A grouping of qualitative data into mutually exclusive classes
showing the number of observations in each class.
• Class frequency: The number of observations in each class.
• Example: Frequency table for vehicles sold at Whitner Autoplex
last month

Car Type Number of Cars


Domestic 50
Foreign 30

2) Relative class frequencies


• The fraction of the total number of observations in each class.
• A relative frequency captures the relationship between a class
total and the total number of observations.
• To convert a frequency distribution to a relative frequency
distribution, each of the class frequencies is divided by the total
number of observations.
Car Type Number Sold Relative Frequency
Domestic 50 0.625
Foreign 30 0.375
Total 80 1.000

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2. Graphic Presentation of qualitative data

1) Bar chart
• A graph in which the classes are reported on the horizontal axis
and the class frequencies on the vertical axis.
• The class frequencies are proportional to the heights of the bars.
• Example: Vehicles sold by type last month at Whitner Autoplex.
60
Numeber Sold (Class frequency)

50

40

30

20

10

0
Foreign Domestic

Car Type (Nariable of interest)

Car Type Number Sold Relative Frequency


Domestic 50 0.625
Foreign 30 0.375
Total 80 1.000

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2) Pie chart
• A chart that shows the proportion of percent that each class
represents of the total number of frequencies.
• Example: Ohio State Lottery Expenses in 2006

Amount Percent
Use of Sales ($ mln) of Share
Prizes 1,310.0 59.4
Payments to Education 646.3 29.3
Bonuses/Commissions 139.8 6.3
Operating Expenses 109.8 5.0
Total 2,205.9 100.0

• Steps to develop a pie chart


a. Record the percentages 0, 5, 10, 15, and so on evenly around
the circumference of a circle.
b. Plot the 59.4% share awarded for prizes, draw a line from the
center of the circle to 0 and another line from the center of
the circle 59.4%.
c. The area in this “slice” represents the lottery proceeds that
were awarded in prizes.
d. Then, repeat for the other three classes.

Prizes
6.3 5
Payments to
Education
29.3
59.4 Bonuses/Commissions

Operating Expenses

[Pie chart of Ohio Lottery Expenses in 2006]

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3. Frequency Distribution

1) Frequency distribution
• A frequency distribution shows the number of observations
falling into each of several ranges of values.
• Frequency distributions are portrayed as frequency tables,
graphs, or functions.

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4. Constructing frequency tables for quantitative data

1) Frequency table of quantitative data


• A grouping of quantitative data into mutually exclusive classes
showing the number of observations in each class.
• 5 steps to develop a frequency table
a. Decide the number of classes.
- 2 to the k rule: Find the minimum k s.t.
2 # .
b. Determine the class interval of width.
- Find the minimum i s.t. .
c. Set the individual class limits.
d. Tally the data into the classes.
e. Count the number of items in each class
• Example: The Quick Change Oil Company has a number of
outlets in the metropolitan Seattle area. The daily number of oil
changes at the Oak Street outlet in the past 20 days are:
65 98 55 62 79 59 51 90 72 56
70 62 66 80 94 79 63 73 71 85
The data are to be organized into a frequency distribution.
a. How many classes would you recommend?
(2 32 20
b. What class interval would you suggest?
( 9.4, 10
c. What lower limit would you recommend for first class?
(50)
d. Organize the number of oil changes into a frequency table.
(4,5,6,2,3)

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5. Graphic Presentation of quantitative data

1) Histogram
• A graph in which the classes are marked on the horizontal axis
and the class frequencies on the vertical axis.
• The class frequencies are represented by the heights of the bars
are drawn adjacent to each other.
• Example: Below is the frequency distribution.

Selling Prices
($ thousands) Frequency
15 up to 18 8
18 up to 21 23
21 up to 24 17
24 up to 27 18
27 up to 30 8
30 up to 33 4
33 up to 36 2
Total 80

Construct a histogram. What conclusions can you reach based


on the information presented in the histogram?

Interpretation:
a. The lowest selling price is about $15,000, and the highest is
about $36,000.

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b. The largest class frequency is the $18,000 up to $21,000 class.
A total of 23 of the 80 vehicles sold are within this price
range.
c. 58 of the vehicles, or 72.5%, had a selling price between
$18,000 and $27,000.

2) Frequency Polygon
• A similar way to show the shape of a distribution.
• Consists of line segments connecting the points formed by the
intersections of the class midpoints and the class frequencies.
• Class midpoint: the value at the center of a class and represents
the typical values in a particular class.
• Example: Construct a polygon using the table below.

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