9/16/2014

Lecture 1b: Describing Data:

Frequency Distributions and
Graphic Presentation

Outline
Organize data into a frequency distribution
Portray a frequency distribution in a histogram,
frequency polygon, and cumulative frequency polygon

Present data using such graphic techniques as line

charts bar charts,
charts,
charts and pie charts

North South University

Slide 1 of 39

School of Business

Frequency Distribution

A Frequency Distribution is a
grouping of data into mutually exclusive
categories showing the number of
observations in each class/category

North South University

Slide 3 of 39

School of Business

North South University

Slide 2 of 39

School of Business

Constructing a frequency
distribution
Determining the question to be addressed
Collecting raw data
Organizing data (frequency distribution)
Presenting data (graph)
Drawing conclusions

North South University

Slide 4 of 39

School of Business

9/16/2014

Frequency distribution :
Construction Procedure
1. Collect at least 30 consecutive data points from a
process

Definitions
Class Midpoint:
Midpoint A point that divides a class into two
equal parts. This is the average of the upper and lower
class limits

2. Arrange the data in increasing order

3. Decide on the number of intervals or classes. No. of
intervals, k = 1 + 3.3 log10 n. Alternatively, use 2k n.

4. Decide the class interval or width, i

H L
k

Cl
Class
Frequency
Frequency:
F
Th
The
number of observations in
each class

5. Set the individual class limits

Class interval:
interval The class
interval is obtained by
subtracting the lower limit of
a class from the upper limit of
the same class. The class
intervals should be equal

6. Tally the data into the classes

7. Count the number of items in each class
North South University

Slide 5 of 39

School of Business

North South University

Slide 6 of 39

School of Business

Example 1 (contd)

Example 1
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 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

Step One:
One: 30 Data points are available
Step Two:
Two: Arrange the data in increasing order

10.3, 12.9, 12.9, 13.5, 13.7, 14.0, 14.2, 15.0, 15.4,

15.7, 16.6, 17.1, 17.4, 17.8, 18.3, 18.3, 18.6, 18.9,
19.7, 20.3, 20.7, 20.8, 21.4, 23.0, 23.2, 23.7, 26.1,
27.1, 29.8, 33.8

Organize the data into a frequency distribution

North South University

Slide 7 of 39

School of Business

North South University

Slide 8 of 39

School of Business

9/16/2014

Example 1 (contd)

Example 1 (contd)

Step Three:
Three: Decide on the number of classes using the
formula
2k n
where k = number of classes
n = number of observations

There are 30 observations so n = 30

Two raised to the fifth power is 32
Therefore, we should have at least 5
classes, i.e., k = 5
North South University

School of Business

Slide 9 of 39

Example 1 (contd)

Hours studying

Frequency, f

7.5 up to 12.5

12.5 up to 17.5

12

17.5 up to 22.5

10

22.5 up to 27.5

27.5 up to 32.5

32.5 up to 37.5

Slide 11 of 39

i > H L = 33.8 10.3 = 4.7

5
k
where H=highest value, L=lowest value
Round up for an interval of 5 hours.
Set the lower limit of the first class at 7.5 hours,
giving a total of 6 classes
North South University

Slide 10 of 39

School of Business

Example 1 (contd)

Step Five:
Five Set the individual class limits and
Steps Six and Seven:
Seven Tally and count the number of items in
each class

North South University

Step Four:
Four Determine the class interval or
width using the formula

School of Business

Class Midpoint: find the midpoint of each interval, use

the following formula: Upper limit + lower limit
2
Hours studying

Midpoint

7.5 up to 12.5

(12.5+7.5)/2 =10.0

12 5 up to 17.5
12.5
17 5

(17 5+12 5)/2=15 0

(17.5+12.5)/2=15.0

12

17.5 up to 22.5

(22.5+17.5)/2=20.0

10

22.5 up to 27.5

(27.5+22.5)/2=25.0

27.5 up to 32.5

(32.5+27.5)/2=30.0

32.5 up to 37.5

(37.5+32.5)/2=35.0

North South University

Slide 12 of 39

School of Business

9/16/2014

Example 1 (contd)
A Relative Frequency Distribution shows
the percent of observations in each class
Hours

7.5 up to 12.5

1/30=.0333

12.5 up to 17.5

12

12/30=.400

17.5 up to 22.5

10

10/30=.333

22.5 up to 27.5

5/30=.1667

27.5 up to 32.5

1/30=.0333

32.5 up to 37.5

1/30=.0333

TOTAL

30

30/30=1

North South University

Slide 13 of 39

The three commonly used graphic forms are

Histograms, Frequency Polygons, and a

Cumulative Frequency distribution

Relative
Frequency

Graphic Presentation of a
Frequency Distribution

A Histogram is a graph in which the class

midpoints or limits 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 and the bars are drawn adjacent to each
other
School of Business

Histogram for Hours Spent

Studying

North South University

Slide 14 of 39

School of Business

Practice Problem 1
The commissions earned for the first quarter of last year by the 11
members of the sales staff at Master Chemical Company are:
$1,650, $1,475, $1,510, $1,670, $1,595, $1,760, $1,540, $1,495,
$1,590, $1,625, $1,510
(a) What are the values such as $1,650 and $1,475 called?
(b) Using $1,400 up to $1,500 as the first class, $1,500 up to $1,600
as the second class, and so forth, organize the quarterly
commissions into a frequency distribution.
(c) What are the numbers in the right column of your frequency
distribution called?
(d) Describe the distribution of quarterly commissions, based on the
frequency distribution. What is the largest amount of commission
earned? What is the smallest? What is the typical amount earned?

midpoint

North South University

Slide 15 of 39

School of Business

North South University

Slide 16 of 39

School of Business

9/16/2014

Solution: Practice Problem 1

a. The raw data or ungrouped data.

Practice Problem 2
Barry Bonds of the San Francisco Giants established a
new single season home run record by hitting 73 home
runs during the 2001 season. The longest of the home
runs travelled 488 feet and the shortest 320 feet. You
q
y distribution of these home
need to construct a frequency
run lengths.

b.

c. Class frequencies.

(a) How many classes would you use?

(b) What class interval would you suggest?
(c) What actual classes would you suggest?

d. The largest concentration of commissions is $1,500

up to $1,600. The smallest commission is about $1,400
and the largest is about $1,800.
North South University

Slide 17 of 39

School of Business

North South University

Solution: Practice Problem 2

Practice Problem 3

a. 26 = 64 < 73 < 128 = 27. So 7 classes are

recommended.
b. The interval width should be at least (488 - 320)/7 =
24. Class intervals of 25 or 30 feet are both reasonable.
c. If we use a class interval of 25 feet and begin with a
lower limit of 300 feet, eight classes would be necessary.
A class interval of 30 feet beginning with 300 feet is also
reasonable. This alternative requires only seven classes.

North South University

Slide 19 of 39

School of Business

School of Business

Slide 18 of 39

Table below shows the relative frequency distribution for the vehicles sold
last month at Whitner Autoplex.
(a) How many vehicles sold for $18,000 up to $21,000?
(b) What percent of the vehicles sold for a price between $18,000 and
$21,000?
(c) What percent of the vehicles sold for $30,000 or more?
Selling Price ($
thousands)

Frequency

15 up to 18

0.1000

18 up to 21

23

0.2875

21 up to 24

17

0.2125

24 up to 27

18

0.2250

27 up to 30

0.1000

30 up to 33

0.0500

33 up to 36

0.0250

Total

80

1.0000

North South University

Slide 20 of 39

Relative
Frequency

School of Business

9/16/2014

Solution: Practice Problem 3

Graphic Presentation of a
Frequency Distribution

a. 23
b. 28.75%, found by (23/80) 100

A Frequency Polygon consists

of line segments connecting the
points formed by the class
midpoint and the class frequency

c. 7.5%, found by (6/80) 100

North South University

School of Business

Slide 21 of 39

Frequency Polygon for Hours

Spent Studying

Freque
ency

12
10
8
6
4
2
0
15

20

25

30

35

Hours spent studying

North South University

Slide 23 of 39

Slide 22 of 39

School of Business

School of Business

Cumulative Frequency
distribution
A Cumulative
Frequency
Distribution is used
to determine how
many or what
proportion of the
data values are
below or above a
certain value

14

10

North South University

North South University

To create a
cumulative frequency
polygon, scale the
upper limit of each
class along the Xaxis and the
corresponding
cumulative
frequencies along
the Y-axis

Slide 24 of 39

School of Business

9/16/2014

Cumulative Frequency Table for

Hours Spent Studying
Hours
Studying

Upper
Limit

7.5 up to 12.5

12.5

12 5 up to 17
12.5
17.55

17 5
17.5

12

13 (1+12)

17.5 up to 22.5

22.5

10

23 (13+10)

22.5 up to 27.5

27.5

28 (23+5)

27.5 up to 32.5

32.5

29 (28+1)

32.5 up to 37.5

37.5

30 (29+1)

Cumulative
Frequency

Cumulative Frequency Distribution

for Hours Spent Studying
35
30
25
Frequency 20
15
10
5

North South University

School of Business

Slide 25 of 39

Practice Problem 4

0
10

15

20

25

30

35

Hours Spent Studying

North South University

Slide 26 of 39

School of Business

Solution: Practice Problem 4

The annual imports of a selected group of electronic suppliers are shown in

the following frequency distribution.
(a) Portray the imports as a histogram.
(b) Portray the imports as a relative frequency polygon.
(c) Summarize the important facets of the distribution (such as classes with
the highest and lowest frequencies).
Imports ($ millions)

Number of Suppliers

2 up to 5

5 up to 8

13

8 up to 11

20

11 up to 14

10

14 up to 17

North South University

Slide 27 of 39

c. The smallest annual sales volume of imports by a

supplier is about $2 million, the largest about $17 million.
The highest frequency is between $8 million and $11
million.
School of Business

North South University

Slide 28 of 39

School of Business

9/16/2014

Practice Problem 5

Solution: Practice Problem 5

A sample of the hourly wages of 15 employees at the Home Depot in

Brunswick, Georgia, was organized into the table below.

a. A frequency distribution.

(a) What is the table called?

b.

(b) Develop a cumulative frequency distribution and portray the distribution

in a cumulative frequency polygon.
(c) On the basis of the cumulative frequency polygon, how many employees
earn $11 an hour or less? Half of the employees
p y
earn an hourly
y wage
g of
how much or more? Four employees earn how much or less?
Hourly Wages

Number of Employees

$8 up to $10

10 up to 12

12 up to 14

14 up to 16

North South University

School of Business

Slide 29 of 39

Line Graphs

Hourly
Wages

Number of
Employees

Less than $8

Less than 10

L
Less
th
than 12

10

Less than 14

14

Less than 16

15

c. About seven employees earn $11.00 or less. About

half the employees earn $11.25 or more. About four
employees earn $10.25 or less.
North South University

Slide 30 of 39

School of Business

Example 3 (contd)

Line graphs are typically used to show the

change or trend in a variable over time
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

North South University

Males
30.5
30.8
31 1
31.1
31.4
31.6
31.9
32.2
32.5
32.8
33.2
33.5
Slide 31 of 39

Females
32.9
33.2
33 5
33.5
33.8
34.0
34.3
34.6
34.9
35.2
35.5
35.8

School of Business

North South University

Slide 32 of 39

School of Business

9/16/2014

Bar Chart
A Bar Chart can be used to depict any of the levels of
measurement (nominal, ordinal, interval, or ratio)

Bar Chart for the Unemployment

Data
# unemploye
ed/100,000

Construct a bar chart for the number of unemployed per

100,000 population for selected cities during 2001
N u m b e r o f u n e m p lo y e d
p e r 1 0 0 ,0 0 0 p o p u la tio n

C ityy
A tla n ta , G A
B o s to n , M A
C h ic a g o , IL
L o s A n g e le s , C A
N e w Y o rk , N Y
W a s h in g to n , D .C .
North South University

7300
5400
6700
8900
8200
8900

Slide 33 of 39

School of Business

Pie Chart

North South University

Slide 34 of 39

School of Business

Pie Chart for Running Shoes

A sample of 200 runners were asked to indicate their favorite type of

running shoe. Draw a pie chart based on the following information

Type
ype of
o shoe
s oe

#o
of runners
u es

% of
o total
oa

Nike

92

46.0

Adidas

49

24.5

Reebok

37

18.5

Asics

13

6.5

Other

4.5

Slide 35 of 39

Atlanta
Boston
Chicago
Los Angeles
New York
Washington

Cities

A 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

North South University

10000
8900
8900
9000
8200
8000 7300
6700
7000
5400
6000
5000
4000
3000
2000
1000
0
1
2
3
4
5
6

School of Business

18.50%

6.50%
4.50%
Nike
Adidas
Reebok
Asics
Other

24.50%
46%

North South University

Slide 36 of 39

School of Business

9/16/2014

Practice Problem 6

Solution: Practice Problem 6

The Clayton County Commissioners want to show

taxpayers attending the forthcoming meeting what
happens to their tax dollars. The total amount of taxes
collected is $2 million. Expenditures are: $440,000 for
$1,160,000
,
,
for roads,, $
$320,000
,
for
schools,, $
administration, and $80,000 for supplies. A pie chart
seems ideal to show the portion of each tax dollar going
for schools, roads, administration, and supplies. Convert
the dollar amounts to percents of the total and portray
the percents in the form of a pie chart.

North South University

Slide 37 of 39

School of Business

North South University

Slide 38 of 39

School of Business

Assignment-1
Problems 5, 6 (pages 30-31) (page 27)
Problem 11 (page 37) (page 33)
Problem 16 (page 41) (page 39)

North South University

Slide 39 of 39

School of Business

10