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Chapter 1 3

Statistics is the study of collecting, organizing, analyzing, and interpreting data. It has two main types: 1) Descriptive statistics describes and summarizes characteristics of data through methods like percentages, averages, and ranges. 2) Inferential statistics makes generalizations from samples to populations through methods like hypothesis testing and regression analysis. Statistics is used in many fields to extract meaningful information from data and make informed conclusions. Understanding statistics requires a grasp of its key concepts, symbols, and techniques.

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0% found this document useful (0 votes)
17 views55 pages

Chapter 1 3

Statistics is the study of collecting, organizing, analyzing, and interpreting data. It has two main types: 1) Descriptive statistics describes and summarizes characteristics of data through methods like percentages, averages, and ranges. 2) Inferential statistics makes generalizations from samples to populations through methods like hypothesis testing and regression analysis. Statistics is used in many fields to extract meaningful information from data and make informed conclusions. Understanding statistics requires a grasp of its key concepts, symbols, and techniques.

Uploaded by

jlouestado
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 55

with Computer Application

Charmie A. Lagdamen, MBA

i
PREFACE

All types of discipline have problems. To solve them, there is a need to


gather relevant data that should be properly organized. To make them useful
valid and reliable, statistical techniques must be employed.
Most areas of human endeavors utilize statistics. In the field of
education, statistical tools are used to gather data and information on
enrolment, finance and physical facilities that are essentially needed to have an
effective administration and management. When an individual analyzes
achievement grades, prepares the tests, provides solutions for teaching-
learning processes, statistical tools or techniques are utilized.
The study of statistics requires primarily the understanding of basic
concepts, symbols, and mathematical notions. Statistics with Computer
Application is designed to introduce basic and frequently applied statistical
methods or techniques for business, economics, and management. This course
provides students with analytical skills and statistical concepts important in
business-oriented environments. Various statistical techniques will be presented
to assist in solving problems encountered by corporate managers.
Computer applications include the use of plots, application of standard
methods to real data, in-depth exploration of data, simulation as a learning tool,
and screening data for errors. Microsoft Excel will be utilized for analyzing and
interpreting data. We limit our discussions to the topics found in this module.
The selected topics illustrate the basic assumptions of most statistical methods
in research to be necessary components of one’s general understanding of the
quantitative nature of reality.

ii
TABLE OF CONTENTS

Foreword ii

Chapter I: INTRODUCTION TO STATISTICS

Lesson I What is Statistics 2


Exercises 7
Lesson III Types of variables and Scales of Measurement 8
Exercises 11
Summary 14
References 15

Chapter II: SAMPLING AND SAMPLING DISTRIBUTION

Lesson I Survey Sampling 17


Exercises 22
Lesson II Sampling Techniques 24
Exercises 31
Summary 33
References 34

Chapter III: STATISTICAL PRESENTATION AS AN AID TO


REPORTING INFORMATION

Lesson I Forms of Presentation of Data 36

Exercises 42

Lesson II Creating and Evaluating Tables and Graphs 48


Exercises
Lesson III Frequency Distribution 50
Exercises 55
Summary 57
References 58

iii
Chapter IV: DESCRIPTIVE STATISTICS

Lesson I Measures of Central Tendency 60


Exercises 67
Lesson II Measures of Position 69
Exercises 74
Lesson III Measure of Dispersion 76
Exercises 80
Lesson IV Computer Application using MS Excel 82
Exercises 87
Summary 89
References 90

Chapter V: INTRODUCTION TO HYPOTHESIS TESTING

Lesson I Definition of Hypothesis 92


Exercises 99
Lesson II Definition of Hypothesis Testing 101
Exercises 112
Summary 114
References 115

Chapter VI: CORRELATION AND SIMPLE LINEAR REGRESSION

Lesson I Simple Linear Regression 117


Exercises 128
Lesson II Linear Correlation 130
Exercises 142
Lesson III Computer Application using MS Excel 144
Exercises 151
Summary 153
References 154

iv
APPENDICES

A Key Formulas 155


B Distribution Table 156
C Analysis ToolPak 158
D References 159

v
Today, statistics and its application are an integral part of our life. In such
diverse settings as politics, medicine, education, business, and the legal arena,
human activities are both measured and guided by statistics.

We begin the module with some basic analysis. Since statistics involves
the collection and interpretation of data, we must first know how to understand,
display, and summarize large amounts of quantitative information, before
undertaking a more sophisticated analysis. Statistical analysis of quantitative
data is important throughout the pure and social sciences.

General Objectives:

At the end of the chapter, you should be able to:

1. appreciate the use and the beauty of statistics in the field of research,
management and in daily lives;
2. define Statistics, descriptive statistics, inferential statistics, and other
basic terminologies about statistics;
3. identify the need of data in conducting research; and
4. determine the importance of measurement level in identifying
appropriate methods for data collection and analysis.

1
LESSON I. WHAT IS STATISTICS
As we embark on our journey into the study of statistics, we must begin
with the definition of statistics and expand on the details involved.
Statistics has become the universal language of the sciences. As
potential users of statistics, we need to master both “sciences” and the “art” of
using statistical methodology correctly. Careful use of statistical methods will
enable us to obtain accurate information from data. These methods include (1)
carefully defining the situation, (2) gathering data, (3) accurately summarizing
the data, and (4) deriving and communicating meaningful conclusions.

At the end of the lesson, you should be able to:


1. define statistics;
2. distinguish between descriptive and inferential statistics;
3. appreciate the need of data in conducting research; and
4. state the reasons in obtaining data.

Statistics is a branch of applied mathematics which deals with the collection,


organization, presentation, analysis, and interpretation of data. Statisticians
develop and apply appropriate methods in collecting and analyzing data. They
guide the design of a research study then analyze the results. The interpretation
of the results is the basis of the statisticians in making inferences about the
population.

a. Data gathering or Collection. May be done through interview,


questionnaires, tests, observation, registration, and experiments.
b. Presentation of Data. Refers to the organization of data into tables,
graphs, charts, or paragraphs. It may be tabular, graphical, or textual.
c. Analysis of Data. Pertains to the process of extracting from the given
data relevant and noteworthy information and this uses statistical tools
or techniques.
d. Interpretation of Data. Refers to the drawing of conclusions or
inferences from the analyzed data.

2
TYPES OF STATISTICS

As we have seen, statistics can refer to a set of individual numbers or


numerical facts, or to general or specific statistical techniques. A further
breakdown of the subject is possible, depending on whether the emphasis is on
(1) simply describing the characteristics of a set of data or (2) proceeding from
data characteristics to making generalizations, estimates, forecasts, or
judgments based on the data. The former is referred to as descriptive statistics,
while the latter is called inferential statistics.

Statistics

Descriptive Statistics Inferential Statistics

FIGURE 1.1 Types of Statistics

Descriptive Statistics. It relates to the gathering, classification and


presentation of data and the collection of summarizing values to describe group
characteristics of data. The most used summarizing values to describe group
characteristics of data are percentage, measures of central tendency and
location, measures of variability, skewness, and kurtosis. For example, upon
looking around your class, you may find that 35% of your fellow students are
wearing Casio watches. If so, the figure “35%” is a descriptive statistic. Chapter
3 and 4 will present several popular visual and statistical approaches to
expressing the data we or others have collected. For now, however, just
remember that descriptive statistics are used only to summarize or describe
data.

3
Data Collection Exploration of Analysis
and Preparation Data

Collect Data
Explore
Descriptive Relationship
Prepare Statistics between
Codebook Variables
Set up Structure
of Data

Enter Data Compare


Graphs Groups
Screen Data for
Errors

FIGURE 1.2 Data Analysis and Descriptive Statistics

Inferential Statistics. Pertains to the methods dealing with making


inference, estimates or prediction about large set of data using the information
gathered. Commonly used inferential statistical tools or techniques are testing
hypothesis using z-test, t-text, simple linear correlation, analysis of variance
(ANOVA), chi-squares, regression, and time series analysis. For example,
observing a sample nurses and other healthcare workers who were likely
infected with the COVID-19, researchers found that only half routinely wore the
PPEs when dealing with patients. Chapter 5 and 6 will present several popular
visual and statistical approaches to predict the data collected. For now,
however, just remember that inferential statistics draws conclusions about a
population based on data observed in a sample.

4
Data Collection Exploration of Analysis
and Preparation Data

Collect Data
Explore
Descriptive Relationship
Prepare Statistics between
Codebook Variables
Set up Structure
of Data

Enter Data Compare


Graphs Groups
Screen Data for
Errors

FIGURE 1.3 Data Analysis and Inferential Statistics

WHY DATA ARE NEEDED


Whichever industry you work in, or whatever your interests, you will
almost certainly have come across a story about how “data” is changing the
face of our world. It might be part of a study helping to cure a disease, boost a
company’s revenue, make a building more efficient or be responsible for those
targeted ads you keep seeing. Data is one of the most important and vital
aspect of any research studies. Researchers conducted in different fields of
study can be different in methodology, but every research is based on data
which is analyzed and interpreted to get information. Data is the basic unit in
statistical studies. Statistical information like census, population variables,
health statistics, and road accidents records all developed from data.

Data contain information needed to make a more informed decision in a


situation, there are many instances in which data are needed:

• A market researcher needs to assess product characteristics to


distinguish one product from another.

5
• An operations manager wants to monitor an assembly process on a
regular basis to find out whether it follows generally accepted accounting
principles.
• A potential investor wants to determine what firms within what industries
are likely to have accelerated growth in a period of economic recovery.
• A student wants to get data on classmates’ favorite rock groups to satisfy
a curiosity.

TABLE 1.1 Six Main Reasons for Data Collection

Reason for Obtaining Data


1. Data are needed to provide the necessary input to a survey.
2. Data are needed to provide the necessary input to the study.
3. Data are needed to measure performance of an ongoing service or
production process.
4. Data are needed to evaluate conformance to standards.
5. Data are needed to assist in formulating alternative courses of action
in a decision-making process.
6. Data are needed to satisfy our curiosity.

Key Data Collection Sources

1. Data may already be published by governmental, industrial, or


individual sources. The Philippine Statistics Authority is responsible for
collecting and compiling data on economic, social, demographic, political
affairs, and general affairs of the people of the Philippines.
2. An experimental may be designed to obtain the necessary data.
Strict control is exercised over the treatments. For example, in a study
testing the effectiveness of laundry detergent, the researcher determines
which brands in the study are most effective in cleaning soiled clothes
by actually washing dirty laundry instead of asking customers which
brand they believe to be most effective.

6
3. A survey may be conducted. In this data collection sources, no control
is exercised over the behavior of the people being surveyed. They are
merely asked questions about their beliefs, attitudes, behaviors, and
other characteristics. Responses are then edited, coded, and tabulated
for analysis.
4. An observational study may be conducted. A researcher observes
the behavior directly, usually in its natural setting. Most knowledge of
animal behavior is developed in this way, as in our scientific knowledge
other fields, such as astronomy and geology, in which experimentation
and surveys are impractical if not impossible.

Two Types of Data Collection Sources

1. Primary Sources. It is measured and gathered by the researcher that


published it. They are the data collectors.
2. Secondary Sources. It is republished by another researcher or agency.
They are the data compilers.

7
LESSON II. TYPES OF VARIABLES AND SCALES OF MEASUREMENT
Statistician develop surveys to deal with a variety of random variables.
The data, which are the observed outcomes of those variables, will virtually
always differ from item to item (or person to person), since no two things are
exactly alike.

The scale of measurement of your variables is important for two reasons.


Each of the levels of measurement provides a different level of detail. Nominal
provides the least amount of detail, ordinal provides the next highest amount of
detail, and interval and ratio provide the most amount of detail. Data can also
be obtained in terms of the level of measurement attained.

In this lesson, you will learn about the types of data: qualitative and
quantitative variables and the four scales of measurement: nominal, ordinal,
interval, and ration scales and why they are important.

At the end of the lesson, you should be able to:


1. differentiate qualitative and quantitative variable;
2. determine what type of variable are present in a survey
questionnaire;
3. identify the different level of measurements;
4. state the importance of the measurement level; and
5. determine what type of measurement level in a survey questionnaire.

TYPES OF VARIABLES

As illustrated in Figure 1.1, there are two types of variables that yield the
observed outcomes or data: qualitative and quantitative.

FIGURE 1.4 Types of Variable

8
Qualitative Variables. Some of the variables associated with people or
objects are qualitative in nature, including that the person or object belongs to
a category. Qualitative variables, also referred to as attributes, typically involve
counting how many people or objects fall into each category. In expressing
results involving qualitative variables, we describe the percentage or the
number of persons or objects falling into each of the possible category. For
example, we may find that 35% of grade school children interviewed recognize
a photograph of McDonald, while 65% do not. Likewise, some of the children
may have eat a Big Mac hamburger at one time or another while others have
not.

Quantitative Variables. Yield numerical responses representing an


amount or quantity. Examples are weight, height, umber of children. There are
two types of quantitative variables: the discrete or continuous.

a. Discrete Quantitative Variables. Produces numerical responses


that arise from a counting process. For example “number of children”,
it is a discrete numerical variable because the response is one of a
finite number of integers ( 0,1,2,3,…).
b. Continuous Quantitative Variables. produce numerical responses
that arise from a measuring process.
Example:
Height (5’4, 157cm, 1.5m)
Weight (130.42 kilos, 210lbs, 432 grams)
Temperature (32.50 C, 1120 F)

SCALES OF MEASUREMENT
Assuming a numerical value to a variable is a process called
measurement. For example, we might look at the thermometer and observe a
reading of 72.5 degrees Fahrenheit or examine a box of lightbulbs and find that
3 are broken. The numbers 72.5 and 3 would constitute measurements. When
a variable is measured, the result will be in one of the four levels, or scales of
measurement: nominal, ordinal, interval, and ratio. Summarized in Figure 1.5.

9
the scale to which the measurements belong will be important in determining
appropriate methods for data description and analysis.

Nominal Each number represents a category

Ordinal Greater than and less than relationships

Interval and Units of measurement

Absolute zero point


Ratio and and

FIGURE 1.5 Scales of Measurement

Nominal Level. Classifies data into various distinct categories in which


no ordering is implied. It is the weakest form of measurement because no
attempt can be made to account for differences within a category or to specify
any ordering or direction across the various categories.

FIGURE 1.6 Examples of Nominal Scale

Ordinal Level. Classifies data into distinct categories in which ordering


is implied. Data are ranked from “bottom to top” or “low to high” manner.
Statements of the kin d “greater than” or “less than” may be made.

10
FIGURE 1.7 Examples of Ordinal Scale

Interval Level. It is an ordered scale in which the difference between


measurements is a meaningful quantity that does not involve a true zero point.

Ratio Level. It is an ordered scale in which the difference between the


measurements involves a true zero point as in height, weight, age, or salary
measurements.

FIGURE 1.8 Examples of Interval and Ratio Scale

11
SUMMARY

Statistics can be defined as the collection, organization, presentation,


analysis, and interpretation of data relevant to a decision or situation. There are
two branches of statistics: descriptive and inferential. Descriptive statistics
focuses on summarizing and describing data that that have been collected.
Inferential statistics goes beyond mere description and, based om sample data,
seeks to reach conclusions, or make predictions regarding the population from
which the sample was drawn.

As businesspersons, and citizens, we are involved with statistics either


as practitioners, researchers, or as consumers of statistical claims and findings
offered by others. Very early statistical efforts primarily involved counting
people. More recently, statistical methods have been applied in all facets of
business or individual as a tool for analysis and reporting, for reaching
conclusions based on observed data, and as an aid to decision making.

Variables can be either qualitative or quantitative. Qualitative variables


indicate whether a person or object possess a given attribute, while quantitative
variables express how much of an attribute is possessed. Discrete quantitative
variables can take on only certain values along an interval, with the possible
values gaps between them, while continuous quantitative variables can take on
a value at any point along an interval.

When variable is measured, a numerical value is assigned to it, and the


result will be in one of four levels of measurement – nominal, ordinal, ratio, and
interval. The level to which the measurements belong will be important in
determining appropriate methods for data description and analysis.

By helping to reduce the uncertainty posed by largely uncontrollable


factors, such as competitors, government, technology, the social and economic
environment, and often unpredictable consumers and voters, statistics plays a
vital role in decision making.

12
REFERENCES

Arao, R., Copo, A.R., Laddaran, A., Mejia, L., & Gabuyo, Y. (2015).
Statistics (based on CMO 03, Series 2007). Rex Book Store, Inc.
Berenson, M., Levine, D., & Krehbiel, T. (2000). Basic Business Statistics:
Concepts and Application, 8th Edition. Pearson Education, Inc.

Data Levels and Measurement. (n.d.). Retrieved from


https://www.statisticssolutions.com/data-levels-and-measurement/

Downie, N.M. & Heath, R. (2005). Basic Statistical Methods 5th Edition.
Harper & Row, Publishers, Inc. Harper International Edition.

Essay: Importance of data and data collection. (February 2, 2016).


Retrieved from https://www.essaysauce.com/science-
essays/importance-of-data-and-data-collection/

Illowsky, B., & Dean, S., (2013). Introduction to Statistics. Openstax College.

Johnson, R., & Kuby, P. (2013). Statistics, 2nd Edition. Cengage Learning
Asia Pte Ltd.
Mann, P. (2010). Introduction to Statistics, 7th Edition. United States of
America.
Weiers, R. (2014). Introduction to Business Statistics, 7th Edition. Cengage
Learning Asia Pte Ltd.

What is data, and why is it important? (June 28, 2018). Retrieved from
https://www.import.io/post/what-is-data-and-why-is-it-important/

13
A good survey research paper relies on the precision of the methods,
and procedures of conducting the study. This includes reliability of the selected
subjects or respondents of the study, the validity of information gathered out of
the distributed questionnaires, and the accuracy of measurements used in
answering the research questions and other observations. A study which were
conducted in the entire population assures us of 100% reliability since the
responses are obtained from all members of the population. This means that
the data were collected by a complete enumeration method or the so-called
census taking. However, it is impossible for many types of research to conduct
a survey to all members of the population especially if the population size is
infinite or finite but very large. To minimize the time and cost involved in
conducting the survey to a large population, it has been accepted that the
information about the population will be based only from a small portion of the
population.
On the other hand, considering only the responses of a small portion of
the population may result into some possible biases due to improper selection
of the samples and errors due to the manner of measuring the desired
observations since the selected sample may not have equally represented the
characteristics of the entire population. Hence, it is very important to consider
the methods used in selecting the sample.

General Objectives:

At the end of the chapter, you should be able to:

1. summarize the advantages and disadvantages of the different


sampling techniques;
2. identify the biases that may arise in survey sampling and apply the
best sampling in different studies;

16
3. analyze and generalize on the population based on the available
samples or based on its given parameters and sample statistics; and
4. demonstrate the process of collection of raw data, and the sampling
techniques.

LESSON I. SURVEY SAMPLING


Survey sampling or simply sampling refers to the process of choosing a
sample of elements from a total population of elements. It is a process of
selecting a subset of a population of items for the purpose of making inferences
about the whole population. The two broad categories of sampling are
probability and non-probability sampling that will be discussed in this lesson.

At the end of the lesson, you should be able to:


1. define different terms in understanding the concept of sampling
distribution;
2. differentiate population and sample;
3. analyze the quality of survey results using accuracy, precision, and
margin error;
4. determine the factors in attaining the best sampling design; and
5. summarize the advantages of sampling over population

The following terms are defined for us to fully understand the concept of
sampling distribution.

POPULATION VERSUS SAMPLE


We will encounter the terms population and sample on almost every
page of this module. Consequently, understanding the meaning of each of
these two terms and difference between them is crucial.
Suppose a statistician is interested in knowing
1. the percentage of all voters in a city who will vote for a particular
candidate in an election.
2. The 2019 gross sales of all enterprises in Sultan Kudarat.
3. The prices of all houses in the Philippines.

17
In these examples, the statistician is interested in all voters, all
enterprises, and all houses. Each of these groups is called the population for
the respective example. In statistics, a population does not necessarily mean a
collection of people. It can, in fact, be a collection of people or of any kind of
item such as houses, books, television sets, or cars. The population of interest
is usually called the target population.

Population is the totality of items or things under consideration. It is also


the large set of data. The population that is being studied is also called the
target population. Population size is denoted by “N”. A finite population is µ
which consists of a finite or fixed number of objects such as the following:
1. The net weight of 30,000 canned goods in a production lot.
2. The scores of 500 students who took the departmental examination
during a semester.
3. A number of accidents that occurred during the last three months.

An infinite population has no limit; therefore, its size cannot be


determined. Examples of infinite population are the possible expenses of all
possible customers arriving in a supermarket.

Sample is a subset of a population; hence, the sample must possess


the same characteristics of the population. Sample size is denoted by “n”.

Sampling

Sample
Population Inference

FIGURE 2.1 Population and Sample


.

18
The collection of information from the elements of a population or a
sample is called a survey. A survey that includes every element of the target
population is called a census. Often the target population is very large. Hence,
in practice, a census is rarely taken because it is expensive and time-
consuming. In many cases, it is even impossible to identify each element of the
target population. Usually, to conduct a survey, we select a sample and collect
the required information from the elements included in that sample. We then
make decisions based on this sample information. Such a survey conducted on
a sample is called a sample survey. As an example, if we collect information
on the 2019 incomes of all families in Sultan Kudarat, it will be referred to as a
census. On the other hand, if we collect information on the 2019 incomes of 50
families from Sultan Kudarat, it will be called a sample survey

KEY TERMS
The following terms are defined as guide whenever the terms are used
in the discussion of the entire module.
• Parameter is a measurable characteristic of a population, such as
population mean denoted by “µ” (mu) and population standard deviation
denoted by “σ” (sigma).
• Statistic is a measurable characteristic of a sample such as sample
mean denoted by “ẋ” (x-bar) or sample standard deviation, denoted by
“s”.
• Sampling distribution is a probability distribution of statistics. When we
say sampling distribution of the mean, we are referring to the mean
values of every possible samples that can be obtained from the
population.
• Sampling with replacement is used when a population element can be
selected more than one time. After a person or item is selected, it is
returned to the frame where it has the same probability of being selected
again. However, it is generally considered more desirable to have a
sample of different people or items than to permit repetition of
measurements on the same person or item.

19
• Sampling without replacement is used when a population element can
be selected only once. A person or item once selected, it is not returned
to the frame and therefore cannot be selected again.
• Standards error refers to the standard deviation of the sampling
distribution. Hence, the standard error of the mean is the standard
deviation of the sampling distribution of the mean.
• Variable noted by the letter X and Y, is a characteristic of interest for
each person or thing in a population. It may be qualitative or quantitative.
• Data are the actual values of the variable. They may be numbers, or they
may be in words. Datum is a single value.

Example:
Determine what the key terms refer to the following study. We want to
know the average amount of money First Year College students spend at ABC
College on school supplies that do not include books. We randomly survey 100
first year students at the college. Three of those students spent Php500,
Php1,000, Php1,500.

Solution:
• The Population is all first year students attending ABC College this
terms.
• The sample could be all students enrolled on one section of a beginning
statistics at ABC College (although this sample may not represent the
entire population).
• The parameter is the average (mean) amount of money spent
(excluding books) by first year college students at ABC College this term.
• The statistic is the average (mean) amount of money spent (excluding
books) by first year college students in the sample.
• The variable could be the amount of money spent (excluding books) by
one first year student. Let X = the amount of money spent (excluding
books) by one first year students at ABC College this term.
• The data are the peso amounts spent by the first year students in the
sample. Examples of the data are Php500, Php1,000, Php1,500.

20
Quality of Survey Results
The quality of survey results can be described by the researchers using
one or more of the following terms.
1. Accuracy. It refers to the closeness of the parameter of sample statistics
to a population. For example, if the sample mean is 99 and the real
population mean is 100, then the sample mean is accurate with gap of 1
unit.
2. Precision. It refers to the closeness of the estimates and the different
samples. An example of a measure of precision is standard error.
Standard error is inversely related to precision. For instance, when the
standard error is small, then the sample estimates are more precise.
Likewise, when the standard error is large, then the sample estimates
are less precise.
3. Margin error. The maximum expected difference between the true
population parameter and a sample of that parameter us expressed by
the margin error. The larger the margin of error, the less confidence one
should have that a poll result would reflect the result of a survey of the
entire population.

SAMPLE DESIGNS
A sample design can be described by two factors.
1. Sampling method. It is the process of selecting a part from a given
whole. The primary purpose of which is to make a generalization about
the (unknown) characteristics of a whole. It is also central to the study of
statistical inference. The rules and procedures by which some of the
elements of the population are included in the sample is referred to
sampling method. Random sampling, stratified sampling, and cluster
sampling are some common sampling method that will be discussed in
the next lesson.
2. Estimator. It refers to the process of calculating sampling statistics.
Different estimators can be used in different sampling methods. For
instance, the equation used in the computation of a mean score with a
random sample is different from the equation for computing a mean

21
score with a stratified sample. The formula to be used in the standard
error may vary form one sampling method to another.

Survey objectives and survey resources are two factors where the “best”
sampling design depend. For example, the most economical design that
provides a desired level of precision may be selected by a researcher. In cases
wherein budget is limited, the researcher must then choose the design that
provides the greatest precision without going over budget.

Advantage of Sampling over Population


1. Economy or reduced cost relative to doing a complete enumeration of
the population.
2. Timeliness - with fewer observation to gather and process, the time
needed to finish the study is shorter.
3. Provides greater scope and coverage – for a given period, more items
can be covered with fewer observation.
4. May generate more accurate results.

22
LESSON II. SAMPLING TECHNIQUES
As defined in lesson 1, a sample is a portion of the population that has
been selected for analysis. Rather than taking a complete census of the whole
population, statistical sampling procedures focus on collecting a small
representative group of the larger population. The resulting sample provides
information that can be used to estimate characteristics of the entire population.
This lesson provides you on how and when to use different types of sampling
techniques as a guide in the identification of the respondents.

At the end of the lesson, you should be able to:


1. differentiate probability and non-probability sampling;
2. compute the sample size;
3. enumerate the different sampling methods;
4. assess the use of different sampling methods in data collection; and
5. give examples in identifying the sampling methods when conducting
research.

DETERMINING THE SAMPLE SIZE OF THE POPULATION


The Slovin's Formula is popularly use for determining the sample size
for a survey research, especially in undergraduate thesis in education and
social sciences, because it is easy to use and the computation is based almost
solely on the population size. It is not advisable to set a certain percentage;
instead, the margin of error which is from 1% to 10 % in social sciences
researches should be considered.

Slovin’s Formula
𝑁
𝑛= 𝑁
𝑛=
1 + 𝑁 𝑒2 Where:
n is the sample size
N is the population size
e is the sampling error

23
Example:
A researcher plans to conduct a survey on the Readiness of the Students
in the Online Learning as a medium of Instruction in SKSU Tacurong Campus.
Supposed there are a total of 4,000 students enrolled in Sultan Kudarat State
University-Tacurong Campus for the A.Y. 2019-2020. Determine the sample
size at 5.25% margin error.

Solution:
Given:
N=4,000
E=5.25% or 0.0525 You can also use Raosoft
Sample Size Calculator in
determining the sample size.
𝑁
𝑛= http://www.raosoft.com/sample
1 + 𝑁 𝑒2 size.html
4,000
=
1 + {(4,000)(0.0525)2 }

= 𝟑𝟑𝟑

TYPES OF SAMPLING METHODS


As shown in figure 2.1, there are two types of samples: the probability
sample and the nonprobability sample.

SAMPLING METHODS

PROBABILITY SAMPLING NON-PROBABILITY


SAMPLING
Simple Random Sampling
Systematic Random Quota Sampling
Sampling Convenience Sampling
Stratified Random Sampling Purposive Sampling
Cluster Sampling
Multistage Sampling

FIGURE 2.2 Sampling Methods


24
PROBABILITY SAMPLING METHOD
In a probability sampling, every element of the population has a nonzero
chance of being chosen as a sample. Probability statements about sample
statistics are allowed by probability samples, the extent to which a sample
statistic from a population parameter can be estimated. It is one in which the
subjects of the sample are chosen based on known probabilities. Uses random
process to ensure that every member of the population has a known non-zero
probability of being included in the sample.

Simple random sampling, systematic random sampling, stratified


sampling, cluster sampling, and multistage sampling are the main types of
probability sampling methods. Probability sampling methods guarantee that the
sample chosen is a representative of the population. Therefore, it ensures that
the statistical conclusions will be valid.

a. Simple Random Sample (SRS). It is the simplest form of random


sampling. One in which every individual or item from a frame has the
same chance of selection as every other individual or item. In
addition, every sample of a fixed size has the same chance of
selection as every other sample of that size. All probability sampling
methods rely on random sampling.
There are many ways to obtain a simple random sample. These
are the lottery or fishbowl sampling, the use of table of random
number, and by an electronic drawing of lots.
1. Lottery or Fishbowl Sampling. It is the process of assigning a
unique number code to each of the N population members.
The numbers are placed in a bowl and thoroughly mixed.
Then, a blindfolded researcher selects n numbers. This
method is best used when there is a finite and small population
size such as when the study pertains to management styles in
which the population of respondents is the set of managers or
different firms of the same industry. Population members
having the selected number codes are included in the sample.

25
2. Using the Table of Random Numbers. If the population size N
is large, it is more practical to use the table of random
numbers, which contains rows and columns of number
randomly generated manually or by a computer. The digits
0,1,2,3,4,5,6,7,8, and 9 are the numbers listed on a Table of
Random Numbers. The numbers in the list are arranged
randomly.
3. Electronic Drawing of Lots. This can be used for a larger finite
population by developing a computerized list of members of
the population and then the sample size n can be generated
using the computer program. This has been used widely by
telecommunication companies and media in drawing the
winners of their raffle promotion, where members are usually
included by registering through texting.

b. Systematic Sample. It relies on arranging the target population


according to some scheme and then selecting elements at regular
intervals through that ordered list. The sample elements can be
randomly selected. This, every kth element on the list can be selected.
Systematic random sampling is generally different form simple
random sampling since every possible of n elements is not likely
equal.

The N individuals or items in the frame are partitioned into k


groups by dividing the size of the frame N by the desire sample size
n. that is,
𝑁
𝑘=
n

Where k is rounded to the nearest integer. To obtain a


systematic sample, the first individual or item to be selected is chosen
at random from the k individuals or items in the first partitioned group
in the frame, and the rest of the sample is obtained by selecting every
kth individual or item thereafter from the entire frame.

26
Example:
If you wanted to take a systematic sample (n) of 20 from the
population of N=100 employee. The first number to be selected is 2.

Solution:

𝑁 100 A random number would be selected from the


𝑘= = =𝟓
n 20 first 20 individuals, and every 20th individual
after the first selection would be included in
the sample.

Systematic Sample

Population

c. Stratified Sample. It involves dividing your population into


homogeneous subgroups and then taking a simple random sample
in each subgroup. When the population can be divided into several
strata or groups based on some characteristics, stratified sampling
technique will be the most appropriate method to ensure a
representative of each group in the sample. Then, within each
stratum, a simple random sample is selected. Selecting a sample
with this technique is quite difficult and costly since it requires a
complete listing of all the elements in the population called frame.

Example:

A company wants to select a sample size of based on the gender


of the 100 employees. The company has a 30 male and 70 female

27
employees. Using a 5% margin error, how many male and female
employees should be included in the sample?

Solution:

We need to determine first the sample size using the Slovin’s


Formula.

𝑁 Strata Frequency
Percentage Number of
𝑛= B Sample
1 + 𝑁 𝑒2 (Gender) A
a/N Bx80
100 Male 30 30% 24
=
1 + {(100)(0.05)2 } Female 70 70% 56
= 𝟖𝟎 N=100 n=80

d. Cluster Random Sampling. This refers when every number of


populations is assigned to one and only one group. This is where
elements in selected cluster are included in the sample. Usually the
sampling unit contains more than population elements. In a stratified
sampling, the sample includes the elements from each stratum. In a
cluster sampling, the sample elements include only the elements
form the sampled cluster. Cluster sampling provides less precision
than either simple random sampling or stratified sampling. Clusters
can be naturally occurring designation, such as countries, election,
districts, city, apartment building, blocks, or families.

e. Multistage Sampling. In this method, we select a sample by using


combination of different sampling methods. For example, in stage 1,
we might use cluster sampling to choose clusters from a population.
Then, in stage 2, we might use stratified sampling by subdividing the
selected clusters into groups. Then, in stage 3, a simple random
sampling can be used to select a subset of elements from each
stratum for the final sample.

28
Advantages and Disadvantages of Probability Sampling
Advantages
1. Avoid selection bias.
2. Enables generalizations from the sample to wider population.
3. Representative of and can make inferences regarding a total target
population.
4. Ability to calculate many of the factors that lead to sampling error to
show validity of results.
5. Sample size required can be calculated prior to initiation of data
collection.

Disadvantages
1. Risks omitting important respondents through chance.
2. Must be able to list or identify individuals in a target population.
3. Requires random number generator and understanding of process
for randomization.
4. Time intensive.
5. May be costly to conduct or implement the research.

NON-PROBABILITY SAMPLING METHOD


This method does not involve random selection. Is a sampling technique
where the sample are gathered in a process that does not give all the individuals
in the population equal chances of being selected.
Three of the main types of nonprobability sampling methods are the
following:
a. Quota Sampling. Method in which participants are selected
according to pre-specified quotas regarding demographics, attitudes,
behavior, or some other criteria.
b. Purposive sampling. It is done through choosing based on the
predetermined criteria set by the researchers. Most likely they are
engaged in market researchers.
c. Convenience Sampling. It is simply one in which the researcher
uses any subjects that are available to participate in the research

29
study. Also known as the “man on the street” or “person on the
street”.

Advantages and Disadvantages of Non-Probability Sampling


Advantages
1. Control over selection process.
2. Can use when individuals within a target population cannot be listed
or specifically identified.
3. Possible to describe details of the sample.
4. Possible to reflect on the comments or data generated by the sample.
5. Usually less costly to conduct or implement.

Disadvantages
1. Greater scope for selection bias.
2. Not representative of an entire target population.
3. More difficult to generalize study results.
4. Cannot measure sampling error factors to show validity.
5. Research judgement used in forming a sample may lead to bias.
6. Limited potential to generalize from the sample to the wider
population

30
SUMMARY

The population is the entire set of all people or objects of interest, with
the sample being a subset of this group. A sample is said to be representative
if its members tend to have the same characteristics as the larger population.
The quality of survey results can be described by the researchers using
Accuracy, Precision, and margin error. There are also two factors in identifying
sampling design, the sampling method, and the estimator. Sampling method is
the rules and procedures of the population elements are included in the sample.
Probability sampling and nonprobability sampling methods are common
sampling method. Estimator is the process of calculating sampling statistics
such as mean, standard deviation, median, and many more. However, the best
sampling design depends on the survey objectives and survey resources.

The chapter also discussed the two types of sampling method, the
probability and nonprobability sampling. In probability sampling, each person or
element in the population has some (nonzero) known or calculable chance of
being included in the sample. In the simple random sample, each person or
element has the same chance for inclusion. Other probability samples
discussed in the chapter are the systematic sample, the stratified sample, the
multistage sample, and the cluster sample. In nonprobability sampling, not
everyone in the population has a chance of being included in the sample, and
the process involves at least some degree of personal subjectivity instead of
predetermined, probabilistic selection rules. Such as samples can be useful in
small-scale, exploratory studies where the researcher does not intend to make
statistical generalizations from the sample to the population. Nonprobability
techniques discussed in the chapter include convenience, quota, and purposive
sampling.

31
REFERENCES

Arao, R., Copo, A.R., Laddaran, A., Mejia, L., & Gabuyo, Y. (2015).
Statistics (based on CMO 03, Series 2007). Rex Book Store, Inc.
Berenson, M., Levine, D., & Krehbiel, T. (2000). Basic Business Statistics:
Concepts and Application, 8th Edition. Pearson Education, Inc.
Cook, T. (2005). Introduction to Statistical Methods for Clinical Trials
(Chapman & Hall/CRC Texts in Statistical Science) 1st Edition.
Chapman and Hall/CRC
Dodge, Y. (2008). The Concise Encyclopedia of Statistics. Springer.
Downie, N.M. & Heath, R. (2005). Basic Statistical Methods 5th Edition.
Harper & Row, Publishers, Inc. Harper International Edition.
Everitt, B. S., & Skrondal, A. (2010). The Cambridge Dictionary of Statistics,
Cambridge University Press.
Johnson, R., & Kuby, P. (2013). Statistics, 2nd Edition. Cengage Learning
Asia Pte Ltd.
Levine, D. (2014). Even You Can Learn Statistics and Analytics: An Easy to
Understand Guide to Statistics and Analytics 3rd Edition. Pearson FT
Press
Stratton, S. (2019). Data sampling strategies for disaster and emergency
health research. World Association for Disaster and Emergency
Medicine, 34 (3), 227-229

Tansey, O. (2007). Process Tracing and Elite Interviewing: A Case for Non-
probability Sampling. PS Political Science & Politics, 40, 765-772.

Weiers, R. (2014). Introduction to Business Statistics, 7 th Edition. Cengage


Learning Asia Pte Ltd.
Wisniowski, A. (2020). Integrating Probability and Nonprobability Samples
for Survey Inference. Journal of Survey Statistics and Methodology,
Volume 8, Issue 1, Pages 120–147,
https://doi.org/10.1093/jssam/smz051

32
The bulk of data is collected from the population or sample of the
concerned observations, either from primary or secondary sources, it still
considered a raw data. A decision cannot be derived easily if the results are not
organized because it does not give a vivid or picture of what has been gathered.
To have a meaningful interpretation of data, it must be presented in an
appropriate form.

There are different statistical formulas that need the help of technology.
Finding the value of a factorial notation would be a difficult task by using manual
computation or a simple calculator. However, using a scientific calculator will
be ideal because by just pressing two or three buttons, you can immediately
get the exact value. This is also true with other statistical formulas wherein it
takes a long time for you to get the solution; however, with the use of computer,
you can get exact answer in just a few seconds.

This chapter explains how to organize and display data using tables and
graphs. We will learn how to prepare frequency distribution tables for qualitative
and quantitative data and how to construct different types of graphs.

General Objectives:

At the end of the chapter, you should be able to:

1. identify the different ways of presenting data;


2. determine what graph is applicable to a given set of data;
3. interpret analyze the graphs, charts, and tables;
4. use the computer to present data in the form of graphs;
5. visually represent data by using graphs and charts;

35
6. appreciate the ease of computing problems with the aid of computer; and
7. apply knowledge in graph constructions in the set of exercise.

LESSON I. FORMS OF PRESENTATION OF DATA


After applying the different methods of collecting data, the raw data
gathered from primary or secondary sources should be organized and
presented in summarized form. This lesson focuses on the different forms of
data presentation, and the different types of graphs and charts.

At the end of the lesson, you should be able to:

1. differentiate the different forms of data presentation;


2. familiarize different types of graphs and charts; and
3. appreciate the use of tables, graphs, and charts in data presentation.

DIFFERENT FORMS OF DATA PRESENTATION


1. Textual. This form of presentation combines text and numerical facts in
paragraphs to explain the summary of data gathered. It usually
discusses the highlights of the data.

Crop damage hits P6B but food stocks are adequate,


assures Yap

Damage to crops and agriculture infrastructure


caused by the one-two punch delivered by Tropical Strom
“Ondoy” and Typhoon “Pepeng” has exceeded P6 billion,
according to Agriculture Secretary Arthur Yap.
Yap yesterday said that the losses-broken down into
P5.5 billion due to Ondoy and P550 million because of
Pepeng-would like rise after the waters receded.

Philippine Daily Inquirer


Vol. 24 No. 300 October 6, 2009

FIGURE 3.1 Example of Textual Form

36
2. Tabular. This form of presentation uses statistical table that shows the
data in a more concise and systematic manner. The table facilitates the
analysis of relationships of data.

Advantages of Tabular Presentation


a. It provides the reader a good grasp of the meaning of the quantitative
relationship of the data presented in the report.
b. The systematic arrangement of columns and rows makes the table
understandable by the reader.
c. The rows and columns facilitate comparison.
d. It gives a vivid picture of the whole data; thus, decision-making will
be easier.
e. It saves time for the reader to analyze and interpret data.

TABLE 3.1 Example of Tabular Form

Summary of Number of Students Enrolled in ABC School for SY 2019-2020

Curriculum Year Number of Students


Total
Level
Boys Girls
First Year 500 685 1,185
Second Year 490 670 1,160
Third Year 450 650 1,100
Fourth Year 400 625 1,025
Total 1,840 2,630 4,470

3. Graphical. This form of presentation is the most interesting and the most
effective means of organizing and presenting statistical data. The important
relationships of data can be easily seen merely looking at colorful figures
that are creatively designed.

37
Different types of graphs/charts

a. Area. This type of chart displays graphically quantitative data. It is


based on the line chart. The area between axis and line are
commonly emphasized with colors, texture, and hatchings.
Commonly one compares two or more quantities with an area chart.

FIGURE 3.2 Example of Area Chart

b. Bar. This type of data presentation is composed of bars or


rectangular prisms of equal widths. It can be horizontally or vertically
in single or paired bar graphs. The length of each rectangle is
proportional to the frequency of observed item or magnitude of class
under interval of item being studied. Information can easily be drawn
by reading this graph in a two-way dimension. It can be made more
interesting especially if different colors will be used or different
shades will be applied to give distinction for each bar. In some cases,
bars can be drawn in opposite directions to illustrate contrasting
situations.

38
Bar chart with vertical bars. Bar chart with horizontal
Categories are on the x-axis bars. Categories are on the
y-axis

FIGURE 3.3 Example of Bar Graph

c. Column. This is a data visualization where each category is


represented by a rectangle, with the height of the rectangle being
proportional to the values being plotted. Column charts are also
known as vertical bar charts.

FIGURE 3.4 Example of Column

d. Pie Chart. This represents relationships of the different components


of a data. It is the ideal graph if you want to show the partition of a
whole. The angles or sectors should be proportional to the
percentage components of the data. The use of different color or
legends will be helpful to identify each component easily.

39
FIGURE 3.5 Example of Pie Chart

e. Doughnut. This is a built-in chart type. Doughnut charts are meant


to express a “part-to-whole” relationship, where all pieces together
represent 100%. Doughnut chart work best to display data with a
small number of categories (2-5).

FIGURE 3.6 Example of Doughnut Chart

40
f. Line Graph. This type of data presentation shows relationships
between two sets of quantities. This type is often used to predict
growth trends such as sales and population for a long period of time.

FIGURE 3.7 Example of Line Chart

g. Scatter. This type illustrates the relationships between two variables,


points are plotted in a Cartesian plane. It is like making a line graph
except that there is no need to connect the points.

Ice Cream

©sweetspot.com

FIGURE 3.8 Example of Scatter Chart

41
LESSON II. CREATING AND EVALUATING TABLES AND GRAPHS
Statistical data can be dull and hard to read in sentences and
paragraphs, so writers will often use tables, graphs, and charts. The reader can
scan and interpret data more easily and quickly when it is presented in a table,
graph, or chart.

Tables, graphs, and charts are frequently used in statistics to visually


communicate data. Such illustrations are also frequent first step in evaluation
raw data for trends, data entry errors, and outlying values which might impact
on the statistical interpretation of the data. Microsoft Excel provides options for
creating different kinds of charts. Among these are pie charts, column charts,
bar charts and line charts. The type of chart that you select will depend on the
data that you want to represent. Each type of chart has its own use.

In this lesson you are going to create and evaluate tables, charts, and
graphs, and learn how to interpret the data. You will be able to use this skill to
enhance your research.

At the end of the lesson, you should be able to:


1. create charts and graphs using Microsoft Excel;
2. analyze and interpret charts and graphs.
3. evaluate the steps in interpreting different forms of data presentation;
and
4. analyze and interpret chart, graphs, and tables in presenting data;

42
DIFFERENT TYPES OF CHARTS AND THEIR DESCRIPTIONS
The following table will serve as your guide on the use of charts.

TABLE 3.2 Chart Type with Description

Chart type Description


Area Trends can be emphasized effectively
because it illustrates the magnitude of
change over time.
Bar This chart type is ideal if you want to
make comparisons among individual
items with two- way reading.
Column This is useful in showing changes over
a period. It has the same function as
with the bar chart.
Pie This type of chart compares the sizes
of each sector as they relate to the
whole unit. It illustrates the partition of
parts with a total of 100% and
applicable if there is only one kind of
data to be analyzed.
Doughnut It also shows the comparisons
between the whole and the parts, but
this type can be used to show more
than one set of data.
Line It illustrates the trends in data with
equal intervals. It is two-way reading.
Scatter It illustrates the relationship between
two variables.

CREATING CHARTS
To facilitate in making the graphs, you can use the Microsoft Excel to
create your chart. This will guide you through the steps of selecting the chart
type, adding chart titles and labels. Before starting to use the Microsoft excel,

43
select the data, or range that you want to convert into chart. The following
discussion is a step-by- step procedure on how to create a chart.

Example:
Six Months Sales of Brands A and B
X Y
20 35
30 25
40 65
50 45
60 50
70 80

1. Select the range A1:A7. Hold down the Ctrl key and then select the
range B1:B7. (Both ranges of data will appear on the chart)
2. Click the Insert button on the formulating toolbar. Then click the
recommended charts box will open as shown in figure 2.1.
3. Click the All Charts if you want to view all the types of charts. Click the
Column or any type of chart you want to use in the Chart type list,
and then select the first chart sub- type in the second row. Click the
Press and Hold to View Sample button inbox will open as shown in the
dialog box. At this point you will see how your chart will look like.

FIGURE 3.9 Step 1 – 3 Chart Type Dialogue

44
4. Release the mouse button and click OK. You can see a preview of the
chart. You are free to edit and improve the chart by selecting the Quick
Layout, Change Colors, and Change Chart Types. You can also edit
or delete the chart title if you want.

FIGURE 3.10 Step 4, Chart Dialogue Box

Note: You can select the data you want in the chart and press
ALT+F1 to create a chart immediately, but it might not be the best
chart for the data, if you don’t see a chart you like or want to use,
select the Change Chart Type or All Charts tab to see all charts
types.

STEPS IN INTERPRETING GRAPHS, CHARTS, AND TABLES


1. Read the title of the graph, chart, or table. The title tells what information
is being displayed.
2. Look at the legend of the graph, chart, or table. It will explain symbols
and colors used in the graph or chart.
3. Read the label of the graph, chart, or table. The labels tell you what
variables or parameters are being displayed.

45
4. Draw conclusions based on the data. You can reach conclusions faster
with graphs or charts than using a data table or a written description of
the data.

Example:
1. ABC company conducted a research on the sales of its product for the
month of April 2020. The graph presented are the data gathered from
the consumers.
Interpretation:
Figure 1 shows the sales of ABS company on
its product for the month of April 2020. Based on
the graph presented, it shows that the lowest
sales of ABC Company for the month of April is
Chicken at 18%. The product with the highest
Figure 1. Product Sales sales is Pork at 38%. Thus, pork is the most
for the month of April
2020 saleable product in the month of April.

2. Considering the sample table 3.1 in lesson 1. The Summary of Number


of Students Enrolled in ABC School for A.Y. 2019-2020.

Interpretation:
Table 3.1 shows the summary of students who enrolled in ABC for the
A.Y. 2019-2020. Based on the table presented, it can be seen that the greatest
number of students who enrolled in ABC School is in the first year, where the
number of girls exceeds the number of boys by 185. In overall, it also shows
that the number of girls is more than the number of boys. It is also notice that
the number of students decreases as year level increases. The total number of
students who enrolled in ABC School is 4,470.

Note: In formal documentation, the researcher or writer should


indicate the source of data on the lower portion of the table

46
LESSON III. FREQUENCY DISTRIBUTION
Regardless of whether an ordered array or a stem –and-leaf display is
selected for organizing data, as the number of observations obtained gets large,
the data need to be further condensed into summary of table in order to properly
present, analyze, and interpret the findings. This data can be arranged into
class groupings according to conveniently established divisions of the range of
the observations. This arrangement of data in tabular form is called frequency
distribution.

When the observations are grouped or condensed into a frequency


distribution, the process of data analysis and interpretation becomes much
more manageable and meaningful. The major data characteristics can be
approximated, which compensates for the fact that when the data are grouped,
the initial information pertaining to individual observations that was previously
available is lost through the grouping process.

In constructing frequency distribution, attention must be given to


selecting the appropriate number of class groupings for the table, obtaining a
suitable class interval, or width of each class grouping, and establishing the
boundaries of each class groupings to avoid overlapping.

At the end of the chapter, you should be able to:


1. identify the different steps in constructing frequency distribution; and
2. construct a cumulative frequency distribution.

FREQUENCY DISTRIBUTION
Table 3.3 gives the weekly earnings of 100 employees of a large
company. The first column lists the classes, which represent the variable weekly
earnings. For quantitative data, an interval that includes all the values that fall
within two numbers—the lower and upper limits—is called a class. Note that the
classes always represent a variable. As we can observe, the classes are
nonoverlapping; that is, each value on earnings belongs to one and only one
class. The second column in the table lists the number of employees who have
earnings within each class. For example, 9 employees of this company

47
earn Php5,001 to Php7,000 per week. The numbers listed in the second column
are called the frequencies, which give the number of values that belong to
different classes. The frequencies are denoted by f. Frequency distribution
for quantitative data lists all the classes and the number of values that belong
to each class. Data presented in the form of a frequency distribution are called
grouped data.

TABLE 3.3 Weekly Earnings of 100 Employees of a Company

Number of Frequency
Variable Weekly Earnings Employees column
f
5001 to 7,000 9
7,001 to 9,000 22 Frequency of
Third Class 9,001 to 11,000 39 the third
11,001 to 13,000 15 class
13,001 to 15,000 9
15,001 to 17,000 6
Lower limit of
the sixth class Upper limit of
the sixth class
The frequency of a class represents the number of values in the data set
that fall in that class. Table 3.3 contains of six classes. Each class has a lower
limit and an upper limit. The values 5001, 7001, 9001, 11001, 13001, and 15001
give the lower limits, and the values 7000, 9000, 11000, 13000, 15000, and
17000 are the upper limits of the six classes, respectively. The data presented
in Table 3.3 are an illustration of a frequency distribution table. Whereas the
data that list individual values are called ungrouped data, the data presented
in a frequency distribution table are called grouped data.

48
Constructing Frequency Distribution
When constructing a frequency distribution table, we need to follow the
following steps.

Example:

Assumed the data in table 3.4, test scores of 50 students in Statistics.

TABLE 3.4 Test scores of 50 Students in Statistics


63 67 73 80 76
88 71 60 56 52
65 85 63 51 76
62 46 90 40 55
88 60 63 78 86
63 42 79 77 60
72 70 83 54 43
76 87 62 48 72
83 78 62 47 52
85 75 55 90 40

Step 1: Determine the range (R) of the distribution


The range refers to the difference between the highest and the lowest
scores.
Range = Highest Score – Lowest Score
R=H–L
R = 90 – 40
R = 50

Step 2: Determine the class size (𝑖) by dividing the by the described number of
class intervals. The number of classes for a frequency distribution table
varies from 5 to 20, depending mainly on the number of observations in
the data set. It is preferable to have more classes as the size of a data
increases. The decision about the number of classes is arbitrarily made
by the data organizer.

49
Let us use 10.
Class size = Range ÷ 10
𝑖 = 50 ÷ 10
𝑖=5

If the obtained 𝑖 is not whole number, round it off to the nearest whole
number.

Step 3: When the class size is 5, all the lower class limit must be multiple of
5. The lower class interval should include the lowest score while highest class
interval must contain the highest score. Any convenient number that is equal
to or less than the smallest value in the data set can be used as the lower limit
of the first class.

Step 4: Tally the frequencies for each interval and sum them.

Step 5: Find the class marks or midpoint of the class intervals. It is the point
halfway between the boundaries of each class and is representative of
the data within that class.

For example, the class mark or midpoint of 50 – 54.


50 + 54 = 104 ÷ 2 = 52.

50
TABLE 3.5 Completed Frequency Distribution

Class Interval Tally Marks Frequency (f) Class Marks (x)


40 – 44 IIII 4 42
45 – 49 III 3 47
50 – 54 IIII 4 52
55 – 59 III 3 57
60 – 64 IIII - IIII 10 62
65 – 69 II 2 67
70 – 74 IIII 5 72
75 – 79 IIII - III 8 77
80 – 84 III 3 82
85 – 89 IIII - I 6 87
90 – 94 II 2 92
N = 50

CUMULATIVE FREQUENCY DISTRIBUTION


A table of cumulative frequency distribution is another useful technique
in tabulating data. It provides information about sets of data that cannot be
obtained from the frequency distribution itself. Cumulative frequency
distribution is the sum of the class and all classes below it in a frequency
distribution. All that means is you are adding up a value and all the values that
came before it.

Table 3.6 demonstrate how cumulative frequency distribution is


constructed by using the example in table 3.4.

51
TABLE 3.6 Cumulative Frequency Distribution

Cumulative
Class Interval Frequency (f) Class Marks (x)
Frequency (<cf)
40 – 44 4 42 4
45 – 49 3 47 7
50 – 54 4 52 11
55 – 59 3 57 14
60 – 64 10 62 24
65 – 69 2 67 26
70 – 74 5 72 31
75 – 79 8 77 39
80 – 84 3 82 42
85 – 89 6 87 48
90 – 94 2 92 50
N = 50

52
SUMMARY

The data gathered form a primary or secondary source is organized and


presented in a summarized form when presenting data. There three different
forms that are discussed in this chapter, the textual, the tabular, and the
graphical. In tabular form, the data is presented with the combination of text and
numerical facts and presented in paragraphs. The tabular form uses statistical
tables in showing a more concise and systematic data. There were also five
advantaged of tabular presentation that are discussed in this chapter. In
graphical form, data is presented in a most effective and interesting means.
Analysis on the relationship of the data can be easily seen with the use of the
colorful figures that creatively designed. There are seven types of graphs/charts
discussed in the chapter include area, bar, column, pie, doughnut, line graph,
and scattered. Microsoft Excel is introduced as a tool in creating or making
charts. Step-by-step procedure is presented in the chapter. Steps in the
interpretation of graphs, tables, and charts is also discussed with corresponding
examples presented.

To more concisely communicate the information contained, raw data can


be visually represented and expressed in terms of statistical summary
measures. When data are quantitative, they can be transformed to a frequency
distribution describing the number of observations occurring in each category.
The set of classes in the frequency distribution must include all possible uses
and should be selected so that any given value falls into just one category.
Selecting the number of classes to use is a subjective process. In general,
between 5 and 15 classes are employed, a frequency distribution may be
converted to show either relative or cumulative frequencies for the data.

53
REFERENCES

Arao, R., Copo, A.R., Laddaran, A., Mejia, L., & Gabuyo, Y. (2015).
Statistics (based on CMO 03, Series 2007). Rex Book Store, Inc.
Berenson, M., Levine, D., & Krehbiel, T. (2000). Basic Business Statistics: Concepts
and Application, 8th Edition. Pearson Education, Inc.
Dodge, Y. (2008). The Concise Encyclopedia of Statistics. Springer. Downie,
N.M. & Heath, R. (2005). Basic Statistical Methods 5th Edition.
Harper & Row, Publishers, Inc. Harper International Edition.
Gonick, L. (1993). The Cartoon Guide to Statistics. HarperPerennial.
Johnson, R., & Kuby, P. (2013). Statistics, 2nd Edition. Cengage Learning
Asia Pte Ltd.
Weiers, R. (2014). Introduction to Business Statistics, 7th Edition. Cengage Learning
Asia Pte L

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