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Business Statistics:
A First Course
Seventh Edition

Chapter 2

Presenting Data in Tables and Charts

Chap 2-1
 Copyright© Dorling Kindersley India Pvt Ltd
Learning Objectives

In this chapter you learn:

 To develop tables and charts for categorical
data
 To develop tables and charts for numerical
data
 The principles of properly presenting graphs

Chap 2-2
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Categorical Data Are Summarized
By Tables & Graphs
Categorical
Data

Tabulating Data Graphing Data

Summary Bar Pie

Table Charts Charts

Chap 2-3
 Organizing Categorical Data:

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Summary Table

 A summary table indicates the frequency, amount, or percentage of

items in a set of categories so that you can see differences between
categories.

Banking Preference? Percent

ATM 16%
Automated or live telephone 2%
Drive-through service at branch 17%
In person at branch 41%
Internet 24%

Chap 2-4
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Bar and Pie Charts

 Bar charts and Pie charts are often used

for categorical data

 Length of bar or size of pie slice shows

the frequency or percentage for each
category

Chap 2-5
 Organizing Categorical Data:

Copyright© Dorling Kindersley India Pvt Ltd

Bar Chart

 In a bar chart, a bar shows each category, the length of which

represents the amount, frequency or percentage of values falling
into a category.
Banking Preference

Internet

In person at branch

Drive-through service at branch

Automated or live telephone

ATM

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Chap 2-6
 Organizing Categorical Data:

Copyright© Dorling Kindersley India Pvt Ltd

Pie Chart

 The pie chart is a circle broken up into slices that represent categories.
The size of each slice of the pie varies according to the percentage in
each category.
Banking Preference

ATM
16%
24%
2% Automated or live
telephone
Drive-through service at
17% branch
In person at branch

Internet
41%

Chap 2-7
 Tables and Charts for

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Numerical Data
Numerical Data

Frequency Distributions
Ordered Array and
Cumulative Distributions

Stem-and-Leaf
Histogram Polygon Ogive
Display

Chap 2-8
 Organizing Numerical Data:

Copyright© Dorling Kindersley India Pvt Ltd

Frequency Distribution

 The frequency distribution is a summary table in which the data are

arranged into numerically ordered classes.

 You must give attention to selecting the appropriate number of class

groupings for the table, determining a suitable width of a class grouping, and
establishing the boundaries of each class grouping to avoid overlapping.

 The number of classes depends on the number of values in the data. With a
larger number of values, typically there are more classes. In general, a
frequency distribution should have at least 5 but no more than 15 classes.

 To determine the width of a class interval, you divide the range (Highest
value–Lowest value) of the data by the number of class groupings desired.

Chap 2-9
 Organizing Numerical Data:

Copyright© Dorling Kindersley India Pvt Ltd

Frequency Distribution Example

Example: A manufacturer of insulation randomly selects 20

winter days and records the daily high temperature

24, 35, 17, 21, 24, 37, 26, 46, 58, 30, 32, 13, 12, 38, 41, 43, 44, 27, 53,
27

Chap 2-10
 Organizing Numerical Data:

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Frequency Distribution Example
 Sort raw data in ascending order:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58
 Find range: 58 - 12 = 46
 Select number of classes: 5 (usually between 5 and 15)
 Compute class interval (width): 10 (46/5 then round up)
 Determine class boundaries (limits):
 Class 1: 10 to less than 20
 Class 2: 20 to less than 30
 Class 3: 30 to less than 40
 Class 4: 40 to less than 50
 Class 5: 50 to less than 60
 Compute class midpoints: 15, 25, 35, 45, 55
 Count observations & assign to classes

Chap 2-11
 Organizing Numerical Data:

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Frequency Distribution Example
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Relative
Class Frequency Percentage
Frequency
10 but less than 20 3 .15 15
20 but less than 30 6 .30 30
30 but less than 40 5 .25 25

40 but less than 50 4 .20 20

50 but less than 60 2 .10 10

Total 20 1.00 100

Chap 2-12
 Tabulating Numerical Data:

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Cumulative Frequency
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Cumulative Cumulative
Class Frequency Percentage
Frequency Percentage

10 but less than 20 3 15 3 15

20 but less than 30 6 30 9 45
30 but less than 40 5 25 14 70
40 but less than 50 4 20 18 90
50 but less than 60 2 10 20 100
Total 20 100

Chap 2-13
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Why Use a Frequency Distribution?

 It condenses the raw data into a more

useful form
 It allows for a quick visual interpretation of
the data
 It enables the determination of the major
characteristics of the data set including
where the data are concentrated /
clustered
Chap 2-14
 Frequency Distributions:

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Some Tips

 Different class boundaries may provide different pictures for

the same data (especially for smaller data sets)

 Shifts in data concentration may show up when different

class boundaries are chosen

 As the size of the data set increases, the impact of

alterations in the selection of class boundaries is greatly
reduced

 When comparing two or more groups with different sample

sizes, you must use either a relative frequency or a
percentage distribution

Chap 2-15
 Organizing Numerical Data:

Copyright© Dorling Kindersley India Pvt Ltd

The Histogram

 A vertical bar chart of the data in a frequency distribution is

called a histogram.

 In a histogram there are no gaps between adjacent bars.

 The class boundaries (or class midpoints) are shown on the

horizontal axis.

 The vertical axis is either frequency, relative frequency, or

percentage.

 The height of the bars represent the frequency, relative

frequency, or percentage.
Chap 2-16
 Organizing Numerical Data:

Copyright© Dorling Kindersley India Pvt Ltd

The Histogram
Relative
Class Frequency Percentage
Frequency

10 but less than 20 3 .15 15

20 but less than 30 6 .30 30
30 but less than 40 5 .25 25
Histogram: Daily High Tem perature
40 but less than 50 4 .20 20
50 but less than 60 2 .10 10
7
Total 20 1.00 100 6
5
Frequency 4
(In a percentage
histogram the vertical 3
axis would be defined to
show the percentage of
2
observations per class) 1
0
5 15 25 35 45 55 More

Chap 2-17
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Cross Tabulations

 Used to study patterns that may exist between

two or more categorical variables.

 Cross tabulations can be presented in

Contingency Tables

Chap 2-18
 Cross Tabulations:

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The Contingency Table

 A cross-classification (or contingency) table presents the

results of two categorical variables. The joint responses are
classified so that the categories of one variable are located in
the rows and the categories of the other variable are located in
the columns.

 The cell is the intersection of the row and column and the
value in the cell represents the data corresponding to that
specific pairing of row and column categories.

Chap 2-19
 Cross Tabulations:

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The Contingency Table

A survey was conducted to study the importance of brand

name to consumers as compared to a few years ago. The
results, classified by gender, were as follows:

Importance of Male Female Total

Brand Name
More 450 300 750
Equal or Less 3300 3450 6750

Total 3750 3750 7500

Chap 2-20
 Copyright© Dorling Kindersley India Pvt Ltd
Scatter Plots

 Scatter plots are used for numerical data consisting of paired

observations taken from two numerical variables

 One variable is measured on the vertical axis and the other

variable is measured on the horizontal axis

 Scatter plots are used to examine possible relationships between

two numerical variables

Chap 2-21
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Scatter Plot Example

Volume Cost per

per day day Cost per Day vs. Production Volume
23 125
250
26 140
200
29 146
Cost per Day

150
33 160
100
38 167
50
42 170
0
50 188
20 30 40 50 60 70
55 195
Volume per Day
60 200

Chap 2-22
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Principles of Excellent Graphs

 The graph should not distort the data.

 The graph should not contain unnecessary adornments
(sometimes referred to as chart junk).
 The scale on the vertical axis should begin at zero.
 All axes should be properly labeled.
 The graph should contain a title.
 The simplest possible graph should be used for a given set of
data.

Chap 2-23
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Graphical Errors: Chart Junk

Bad Presentation  Good Presentation

Minimum Wage Minimum Wage
1960: $1.00
$
4
1970: $1.60
2
1980: $3.10
0
1990: $3.80 1960 1970 1980 1990

Chap 2-24
 Graphical Errors:

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No Relative Basis

Bad Presentation Good Presentation

A’s received by A’s received by
Freq. students. % students.
30%
300

200 20%

100 10%

0 0%
FR SO JR SR FR SO JR SR

FR = Freshmen, SO = Sophomore, JR = Junior, SR = Senior

Chap 2-25
 Graphical Errors:

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Compressing the Vertical Axis

Bad Presentation  Good Presentation

Quarterly Sales Quarterly Sales
$ $
200 50

100 25

0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Chap 2-26
 Graphical Errors: No Zero Point

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on the Vertical Axis

Bad Presentation
 Good Presentations

Monthly Sales $ Monthly Sales

$ 45
45
42
42 39
39 36
36 0
J F M A M J J F M A M J

Graphing the first six months of sales

Chap 2-27
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Chapter Summary
In this chapter, we have
 Organized categorical data using the summary table, bar

chart, pie chart.

 Organized numerical data using the ordered array, frequency

distribution, histogram.
 Examined cross tabulated data using the contingency table.

 Developed scatter plots.

 Examined the do’s and don'ts of graphically displaying data.

Chap 2-28