Unit -2

FREQUENCY DISTRIBUTION
A frequency distribution shows the frequency of repeated items in a graphical form or
tabular form. It gives a visual display of the frequency of items or shows the number of
times they occurred.
Frequency distribution is used to organize the collected data in table form. The data could
be marks scored by students, temperatures of different towns, points scored in a volleyball
match, etc. After data collection, we have to show data in a meaningful manner for better
understanding. Organize the data in such a way that all its features are summarized in a
table. This is known as frequency distribution.
Frequency Distribution Graphs
The graphical representation of a frequency distribution can be shown using the
following:
● Bar Graphs: Bar graphs represent data using rectangular bars of uniform width along with

equal spacing between the rectangular bars.

● Histograms: A histogram is a graphical presentation of data using rectangular bars of different

heights. In a histogram, there is no space between the rectangular bars.

● Pie Chart: A pie chart is a type of graph that visually displays data in a circular chart. It

records data in a circular manner and then it is further divided into sectors that show a

particular part of data out of the whole part.

● Frequency Polygon: A frequency polygon is drawn by joining the mid-points of the bars in a

histogram.

Types of Frequency Distribution Table

There are two types of frequency distribution tables: Grouped and ungrouped frequency

distribution tables.
● Grouped Frequency Distribution Table: To arrange a large number of observations or data,

we use a grouped frequency distribution table. In this, we form class intervals to tally the

frequency for the data that belongs to that particular class interval.

For example, Marks obtained by 20 students in the test are as follows. 5, 10, 20, 15, 5, 20, 20,

15, 15, 15, 10, 10, 10, 20, 15, 5, 18, 18, 18, 18. To arrange the data in a grouped table we have

to make class intervals.Thus, we will make class intervals of marks like 0 – 5, 6 – 10, and so on.

● Ungrouped Frequency Distribution Table: In the ungrouped frequency distribution table, we

don't make class intervals, we write the accurate frequency of individual data. Considering the

above example, the ungrouped table will be like this. The below table shows two columns: one

is of marks obtained in the test and the second is of frequency (no. of students).

CROSS TABULATION

A cross tabulation (or crosstab) report is used to analyze the relationship between two or
more variables. The report has the x-axis as one variable (or question) and the y-axis as
another variable. This type of analysis is crucial in finding underlying relationships within
your survey results. (or any type of data!)

Generally, survey results are presented in aggregate – meaning, you only see a summary of
the results, one question at a time. Cross tabulation takes this one step further and enables
you to see how one or more questions correlate to each other. This type of analysis can
reveal a relationship in your data that is not initially apparent.

An example of cross tabulation

“No other tool in Excel gives you the flexibility and analytical power of a pivot
table.” Bill Jalen
One simple way to do cross tabulations is Microsoft Excel’s pivot table feature. Pivot tables
are a great way to search for patterns as they help in easily grouping raw data.
Consider the below sample data set in Excel. It displays details about commercial
transactions for four product categories. Let’s use this data set to show cross tabulation in
action.

This data can be converted to pivot table format by selecting the entire table and inserting a
pivot table in the Excel file. The table can correlate different variables row-wise,
column-wise, or value-wise in either table format or chart format.
Let’s use cross tabulation to check the relation between the type of payment method (i.e.
visa, MasterCard, PayPal, etc) and the product category with respect to the region of sales.
We can select these three categories in the pivot table.

Then the results appear in a pivot table:

It is now clear that the highest sales were done for P1 using Mastercard. Therefore, we can
conclude that the MasterCard payment method and product P1 category is the most
profitable combination.

Similarly, we can use cross tabulation and find the relation between the product category
and the payment method type with regard to the number of transactions.

This can be done by grouping the payment method, product category, and units sold:

By default, Excel’s pivot table aggregates values as a sum. Summing the units will give us
the total number of units sold. Since we want to compare the number of transactions instead
of the number of units sold, we need to change the Value Field Setting from Sum to Count
for Units.
The results of this pivot table mapping is as shown below. This is a cross tabulation analysis
of 3 variables — it analyses the correlation between the payment method and payment
category according to the number of transactions.

For all regions, we can observe that the highest selling category of products was P1 and the
highest number of transactions was done using Mastercard. We can also see the preferred
payment method in each of the product categories. For example, American Express is the
preferred card for P2 products.
 HYPOTHESIS

Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a

population parameter. The methodology employed by the analyst depends on the nature of
the data used and the reason for the analysis.

Hypothesis testing is used to assess the plausibility of a hypothesis by using sample data

TESTING OF HYPOTHESIS

Test of Significance for Large Samples

The test of significance for the large samples can be explained by the following
assumptions:

i. The random sampling distribution of statistics is approximately normal.

ii. Sampling values are sufficiently close to the population value and can be used for the
calculation of standard error of estimate.

1. The Standard Error Of Mean. In the case of large samples, when we are testing the
significance of a statistic, the concept of standard error is used. It measures only sampling
errors. Sampling errors are involved in estimating a population parameter from a sample,
instead of including all the essential information in the population.
Test Of Significance For Small Samples

If the sample size is less than 30, then those samples may be regarded as small samples. As
a rule, the methods and the theory of large samples are not applicable to the small samples.
The small samples are used in 112 testing a given hypothesis, to find out the observed
values, which could have arisen by sampling fluctuations from some values given in
advance. In a small sample, the investigator’s estimate will vary widely from sample to
sample. An inference drawn from a smaller sample result is less precise than the inference
drawn from a large sample result. t-distribution will be employed, when the sample size is
30 or less and the population standard deviation is unknown.