Statistics for Business and Economics (14e, Metric Version)

Statistics for
Business and Economics (14e)
Metric Version

Anderson, Sweeney, Williams, Camm, Cochran, Fry, Ohlmann

© 2020 Cengage Learning

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Chapter 2 - Descriptive Statistics (敘述統計):

Tabular (表格) and Graphical (圖形) Displays
2.1 - Summarizing Data for a Categorical Variable
• Categorical (分類) data use labels or names to identify categories of
like items.
2.2 - Summarizing Data for a Quantitative Variable
• Quantitative (數量) data are numerical values that indicate how
much or how many.
2.3 - Summarizing Data for Two Variables Using Tables
2.4 - Summarizing Data for Two Variables Using
Graphical Displays
2.5 - Data Visualization (資料視覺化): Best Practices in
Creating Effective Graphical Displays

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 Statistics for Business and Economics (14e, Metric Version)

Summarizing Categorical Data

• Frequency Distribution (頻率分布)
• Relative Frequency Distribution (相對頻率分布)
• Percent Frequency Distribution (百分比頻率分布)
• Bar Chart (條狀圖)
• Pie Chart (餅狀圖)

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 Statistics for Business and Economics (14e, Metric Version)

Frequency Distribution
A frequency distribution (頻率分布) is
a tabular summary of data showing the Rating Frequency
number (frequency) of observations in Poor 2
each of several non-overlapping
Below 3
categories or classes. Average
Example: Marada Inn Average 5
Above 9
Guests staying at the Marada Inn were Average
asked to rate the quality of their
Excellent 1
accommodations as being excellent,
above average, average, below Total 20
average, or poor.
© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Relative Frequency and Percent

Frequency Distributions (1 of 2)

Example: Marada Inn

• The relative frequency (相對
Relative Percent
頻率) of a class is the Rating Frequency Frequency
fraction or proportion of the Poor 0.10 10%
total number of data items
Below Average 0.15 15%
belonging to the class.
Average 0.25 25%
Above Average 0.45 45%

• The percent frequency (百分 Excellent 0.05 5%

比頻率) of a class is the
Total 1.00 100%
relative frequency multiplied
by 100.
© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Bar Chart
• A bar chart (條狀圖) is a
graphical display for depicting
qualitative data.
• A frequency, relative frequency,
or percent frequency scale can
be used for the other axis
(usually the vertical axis).
• Using a bar of fixed width drawn
above each class label, we
extend the height appropriately.
• The bars are separated to
emphasize the fact that each
class is a separate category.
© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Pie Chart
• The pie chart (餅狀圖) is a
commonly used graphical display for
presenting relative frequency and
percent frequency distributions for
categorical data.
• Because there are 360 degrees in a
circle, a class with a relative
frequency of 0.25 would consume
0.25(360) = 90 degrees of the circle.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Summarizing Quantitative Data

• Frequency Distribution
• Relative Frequency and Percent Frequency
Distributions
• Dot Plot (點狀圖)
• Histogram (直方圖)
• Cumulative Distributions (累積分布)

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 Statistics for Business and Economics (14e, Metric Version)

Frequency Distribution – Quantitative Data

(1 of 2)

The manager of Hudson Auto would like to gain a better

understanding of the cost of parts used in the engine tune-ups
performed in the shop. She examines 50 customer invoices for
tune-ups. The costs of parts, rounded to the nearest dollar, are
shown below.

Note: you can use the “sorting” (排序) function in excel to sort
the data, find the maximum and minimum numbers and find
counts in each bin.
© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Frequency Distribution –
Quantitative Data (2 of 2)

Example: Hudson Auto Repair Part Cost ($) Frequency

If we choose six classes the 50-59 2
approximate class width = (109 – 60-69 13
50)/6 = 9.83 or about 10. 70-79 16
80-89 7
90-99 7
100-109 5
Total 50

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Relative Frequency and Percent Frequency

Distributions (2 of 2)

Insights
Relative Percent
• Only 4% of the parts costs are Parts Cost ($) Frequency Frequency
in the $50-59 class. 50-59 0.04 = 2/50 4 = .04(100)
60-69 0.26 26
• 30% of the parts costs are 70-79 0.32 32
under $70. 80-89 0.14 14
90-99 0.14 14
• The greatest percentage
100-109 0.10 10
(32% or almost one-third) of
Total 1.00 100
the parts costs are in the
$70-79 class.
• 10% of the parts costs are
$100 or more.
© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Histogram
• The variable of interest is placed
on the horizontal axis.
• A rectangle is drawn above each
class interval with its height
corresponding to the interval’s
frequency, relative frequency, or
percent frequency.
• Unlike a bar graph, a histogram
has no natural separation
between rectangles of adjacent
classes.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Histograms Showing Skewness (偏態)

Moderately Skewed Left Symmetric (對稱) Moderately Right Skewed

(左偏) Left tail is the mirror image of (右偏)
A longer tail to the left the right tail
Ex: Heights of People A Longer tail to the right
Ex: Exam Scores Ex: Housing Values

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Cumulative Distributions
Cumulative frequency distribution Hudson Auto Repair
(累計頻率分布) – shows the number
of items with values less than or
Cumulative Cumulative
equal to the upper limit of each
class. Cost Cumulative Relative Percent
($) Frequency Frequency Frequency
Cumulative relative frequency
distribution – shows the proportion ≤ 59 2 .04 4
of items with values less than or ≤ 69 15 = 2+13 .30 = 15/50 30 = .30(100)
equal to the upper limit of each ≤ 79 31 .62 62
class. ≤ 89 38 .76 76
Cumulative percent frequency ≤ 99 45 .90 90
distribution – shows the percentage ≤ 109 50 1.00 100
of items with values less than or
equal to the upper limit of each
class.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Summarizing Data for Two Variables

using Tables
• Thus far we have focused on methods that are used
to summarize the data for one variable at a time.
• Often a manager is interested in tabular and
graphical methods that will help understand the
relationship between two variables.
• Crosstabulation (交叉報表) is a method for
summarizing the data for two variables.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or
service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Summarizing Data for Two

Variables using Tables
• Crosstabulation can be used when:
• one variable is categorical and the other is quantitative,
• both variables are categorical, or
• both variables are quantitative
• The left and top margin labels define the classes for
the two variables.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or
service or otherwise on a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Crosstabulation
Example: Flat tire accidents
The number of flat tire accidents and quality of tires

Number of Flat Tire Accidents

Quality of Tires 0 1 2 3 4 5 Total

High 5 6 6 5 2 0 24
Low 4 6 6 6 3 1 26
Total 9 12 12 11 5 1 50

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Crosstabulation: Row Percentages

Converting the entries in the table into row percentages (列
百分比) or column percentages (行百分比) can provide
additional insight about the relationship between the two
variables.

Number of Flat Tire Accidents

0 1 2 3 4 5 Total

High 20.83 25.00 25.00 20.83 8.33 0.00 100

Low 15.38 23.08 23.08 23.08 11.54 3.85 100

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Crosstabulation: Column Percentages

Number of Flat Tire Accidents

0 1 2 3 4 5

High 55.56 50.00 50.00 45.45 40.00 0.00

Low 44.44 50.00 50.00 54.55 60.00 100.00

Total 100.00 100.00 100.00 100.00 100.00 100.00

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Crosstabulation: Simpson’s
Paradox
• Data in two or more crosstabulations are often aggregated to
produce a summary crosstabulation.
• We must be careful in drawing conclusions about the relationship
between the two variables in the aggregated crosstabulation.
• In some cases the conclusions based upon an aggregated
crosstabulation can be completely reversed if we look at the
unaggregated data. The reversal of conclusions based on
aggregate and unaggregated data is called Simpson’s paradox.

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 Statistics for Business and Economics (14e, Metric Version)

Summarizing Data for Two

Variables Using Graphical Displays
• In most cases, a graphical display is more useful
than a table for recognizing patterns and trends.
• Displaying data in creative ways can lead to
powerful insights.
• Scatter diagrams (散布圖) and trendlines (趨勢線)
are useful in exploring the relationship between
two variables.

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 Statistics for Business and Economics (14e, Metric Version)

Scatter Diagram and Trendline

• A scatter diagram is a graphical presentation of the
relationship between two quantitative variables.
• One variable is shown on the horizontal axis and
the other variable is shown on the vertical axis.
• The general pattern of the plotted points suggests
the overall relationship between the variables.
• A trendline provides an approximation of the
relationship.

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 Statistics for Business and Economics (14e, Metric Version)

Scatter Diagram (1 of 2)

A Positive Relationship A Negative Relationship No Apparent Relationship

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Scatter Diagram (2 of 2)

Example: Relation between years of education and monthly

salary.
ID Years of Education Salary
1 10 23000
2 12 29000
3 9 21000
4 12 26000
5 16 34000
6 15 42500
7 13 29500
8 18 34000
9 19 40000
10 22 43000

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Scatter Diagram
Years of Education and Wage
50000

40000

30000

20000

10000

0
0 5 10 15 20 25
Salary Trend

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 Statistics for Business and Economics (14e, Metric Version)

Example: Years of Education and

Salary
Insights gained from the preceding Scatter Diagram
• The scatter diagram indicates a positive
relationship between years of education and
salary.
• Higher salary is associated with more years of
education.
• The relationship is not perfect; all plotted points
in the scatter diagram are not on a straight line.

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 Statistics for Business and Economics (14e, Metric Version)

Side-by-Side Bar Chart

• A side-by-side bar chart (並排長條圖) is a graphical
display for depicting multiple bar charts on the same
display.
• Each cluster of bars represents one value of the first
variable.
• Each bar within a cluster represents one value of the
second variable.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Side-by-Side Bar Chart

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 Statistics for Business and Economics (14e, Metric Version)

Stacked Bar Chart (1 of 2)

• A stacked bar chart is another way to display and compare

two variables on the same display.
• It is a bar chart in which each bar is broken into rectangular
segments of a different color.
• If percentage frequencies are displayed, all bars will be of
the same height (or length), extending to the 100% mark.

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Stacked Bar Chart

Number of Flat Tire Accidents by Quality of Tires

14

12

10

0
0 1 2 3 4 5

High Low

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 Statistics for Business and Economics (14e, Metric Version)

Stacked Bar Chart (2 of 2)

If percentage frequencies are displayed, all bars will be of

the same height (or length), extending to the 100% mark.
Number of Flat Tire Accidents
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
1 2 3 4 5 6

High Low

© 2020 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website or school-approved learning management system for classroom use.
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 Statistics for Business and Economics (14e, Metric Version)

Data Visualization: Best Practices in

Creating Effective Graphical Displays
• Data visualization is the use of graphical displays to
summarize and present information about a data set.
• The goal is to communicate, as effectively and clearly as
possible, the key information about the data.

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 Statistics for Business and Economics (14e, Metric Version)

Creating Effective Graphical Displays

• Creating effective graphical displays is as much art as it is
science.
• Here are some guidelines:
1. Give the display a clear and concise title.
2. Keep the display simple.
3. Clearly label each axis and provide the units of measure.
4. If colors are used, make sure they are distinct.
5. If multiple colors or line types are used, provide a
legend.

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 Statistics for Business and Economics (14e, Metric Version)

Choosing the Type of Graphical

Display (1 of 3)

Displays used to show the distribution of data:

• Bar Chart to show the frequency distribution and relative
frequency distribution for categorical data
• Pie Chart to show the relative frequency and percent
frequency for categorical data
• Dot Plot to show the distribution for quantitative data over
the entire range of the data
• Histogram to show the frequency distribution for
quantitative data over a set of class intervals

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 Statistics for Business and Economics (14e, Metric Version)

Choosing the Type of Graphical

Display (2 of 3)

Displays used to make comparisons:

• Side-by-Side Bar Chart to compare two variables
• Stacked Bar Chart to compare the relative frequency or
percent frequency of two categorical variables

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 Statistics for Business and Economics (14e, Metric Version)

Choosing the Type of Graphical

Display (3 of 3)

Displays used to show relationships:

• Scatter Diagram to show the relationship between two
quantitative variables
• Trendline to approximate the relationship of data in a
scatter diagram

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 Statistics for Business and Economics (14e, Metric Version)

Tabular and Graphical Displays

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