Slides by JOHN LOUCKS St. Edward’s University © 2009 Thomson South-Western. All Rights Reserved Slide 1 Chapter 2, Part B Descriptive Statistics: Tabular and Graphical Presentations Exploratory Data Analysis: Stem-and-Leaf Display Crosstabulations and y Scatter Diagrams x © 2009 Thomson South-Western. All Rights Reserved Slide 2 Exploratory Data Analysis The techniques of exploratory data analysis consist of simple arithmetic and easy-to-draw pictures that can be used to summarize data quickly. One such technique is the stem-and-leaf display. © 2009 Thomson South-Western. All Rights Reserved Slide 3 Stem-and-Leaf Display A stem-and-leaf display shows both the rank order and shape of the distribution of the data. It is similar to a histogram on its side, but it has the advantage of showing the actual data values. The first digits of each data item are arranged to the left of a vertical line. To the right of the vertical line we record the last digit for each item in rank order. Each line in the display is referred to as a stem. Each digit on a stem is a leaf. © 2009 Thomson South-Western. All Rights Reserved Slide 4 Example: Hudson Auto Repair The manager of Hudson Auto would like to have 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 listed on the next slide. © 2009 Thomson South-Western. All Rights Reserved Slide 5 Example: Hudson Auto Repair Sample of Parts Cost ($) for 50 Tune-ups 91 71 104 85 62 78 69 74 97 82 93 72 62 88 98 57 89 68 68 101 75 66 97 83 79 52 75 105 68 105 99 79 77 71 79 © 2009 Thomson South-Western. All Rights Reserved 80 75 65 69 69 97 72 80 67 62 62 76 109 74 73 Slide 6 Stem-and-Leaf Display 5 6 7 8 9 10 a stem 2 2 1 0 1 1 7 2 1 0 3 4 2 2 2 7 5 2 2 3 7 5 5 3 5 7 9 6 4 8 8 7 8 8 8 9 9 9 4 5 5 5 6 7 8 9 9 9 9 9 a leaf © 2009 Thomson South-Western. All Rights Reserved Slide 7 Stretched Stem-and-Leaf Display If we believe the original stem-and-leaf display has condensed the data too much, we can stretch the display by using two stems for each leading digit(s). Whenever a stem value is stated twice, the first value corresponds to leaf values of 0 - 4, and the second value corresponds to leaf values of 5 - 9. © 2009 Thomson South-Western. All Rights Reserved Slide 8 Stretched Stem-and-Leaf Display 5 5 6 6 7 7 8 8 9 9 10 10 2 7 2 5 1 5 0 5 1 7 1 5 2 6 1 5 0 8 3 7 4 5 2 7 2 5 2 9 2 8 8 8 9 9 9 2 3 4 4 6 7 8 9 9 9 3 7 8 9 9 © 2009 Thomson South-Western. All Rights Reserved Slide 9 Stem-and-Leaf Display Leaf Units • A single digit is used to define each leaf. • In the preceding example, the leaf unit was 1. • Leaf units may be 100, 10, 1, 0.1, and so on. • Where the leaf unit is not shown, it is assumed to equal 1. © 2009 Thomson South-Western. All Rights Reserved Slide 10 Example: Leaf Unit = 0.1 If we have data with values such as 8.6 11.7 9.4 9.1 10.2 11.0 8.8 a stem-and-leaf display of these data will be Leaf Unit = 0.1 8 6 8 9 1 4 10 2 11 0 7 © 2009 Thomson South-Western. All Rights Reserved Slide 11 Example: Leaf Unit = 10 If we have data with values such as 1806 1717 1974 1791 1682 1910 1838 a stem-and-leaf display of these data will be Leaf Unit = 10 16 8 17 1 9 18 0 3 19 1 7 The 82 in 1682 is rounded down to 80 and is represented as an 8. © 2009 Thomson South-Western. All Rights Reserved Slide 12 Crosstabulations and Scatter Diagrams Thus far we have focused on presentations that are used to summarize the data for one variable at a time. Often a manager is interested in presentations that will help understand the relationship between two variables. Crosstabulation and a scatter diagram are two methods for summarizing the data for two variables simultaneously. © 2009 Thomson South-Western. All Rights Reserved Slide 13 Crosstabulation A crosstabulation is a tabular summary of data for two variables. Crosstabulation can be used when: • one variable is qualitative and the other is quantitative, • both variables are qualitative, or • both variables are quantitative. The left and top margin labels define the classes for the two variables. © 2009 Thomson South-Western. All Rights Reserved Slide 14 Crosstabulation Example: Finger Lakes Homes The number of Finger Lakes homes sold for each style and price for the past two years is shown below. Price Range < $99,000 > $99,000 Total quantitative qualitative variable variable Home Style Colonial Log Split A-Frame Total 18 12 6 14 19 16 12 3 55 30 20 35 15 100 © 2009 Thomson South-Western. All Rights Reserved 45 Slide 15 Crosstabulation Insights Gained from Preceding Crosstabulation • The greatest number of homes (19) in the sample are a split-level style and priced at less than or equal to $99,000. • Only three homes in the sample are an A-Frame style and priced at more than $99,000. © 2009 Thomson South-Western. All Rights Reserved Slide 16 Crosstabulation Frequency distribution for the price variable Home Style Log Split A-Frame Price Range Colonial < $99,000 > $99,000 18 12 6 14 19 16 12 3 55 30 20 35 15 100 Total Total 45 Frequency distribution for the home style variable © 2009 Thomson South-Western. All Rights Reserved Slide 17 Crosstabulation: Row or Column Percentages Converting the entries in the table into row percentages or column percentages can provide additional insight about the relationship between the two variables. © 2009 Thomson South-Western. All Rights Reserved Slide 18 Crosstabulation: Row Percentages Price Range Colonial < $99,000 > $99,000 32.73 26.67 Home Style Log Split A-Frame 10.91 31.11 34.55 35.56 21.82 6.67 Total 100 100 Note: row totals are actually 100.01 due to rounding. (Colonial and > $99K)/(All >$99K) x 100 = (12/45) x 100 © 2009 Thomson South-Western. All Rights Reserved Slide 19 Crosstabulation: Column Percentages Price Range Colonial < $99,000 > $99,000 60.00 40.00 30.00 70.00 54.29 45.71 80.00 20.00 Total 100 100 100 100 Home Style Log Split A-Frame (Colonial and > $99K)/(All Colonial) x 100 = (12/30) x 100 © 2009 Thomson South-Western. All Rights Reserved Slide 20 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. Simpson’ Paradox: In some cases the conclusions based upon an aggregated crosstabulation can be completely reversed if we look at the unaggregated data. © 2009 Thomson South-Western. All Rights Reserved Slide 21 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 is an approximation of the relationship. © 2009 Thomson South-Western. All Rights Reserved Slide 22 Scatter Diagram and Trendline A Positive Relationship y x © 2009 Thomson South-Western. All Rights Reserved Slide 23 Scatter Diagram and Trendline A Negative Relationship y x © 2009 Thomson South-Western. All Rights Reserved Slide 24 Scatter Diagram and Trendline No Apparent Relationship y x © 2009 Thomson South-Western. All Rights Reserved Slide 25 Example: Panthers Football Team Scatter Diagram and Trendline The Panthers football team is interested in investigating the relationship, if any, between interceptions made and points scored. x = Number of Interceptions 1 3 2 1 3 y = Number of Points Scored 14 24 18 17 30 © 2009 Thomson South-Western. All Rights Reserved Slide 26 Scatter Diagram and Trendline Number of Points Scored y 35 30 25 20 15 10 5 0 0 1 x 2 3 4 Number of Interceptions © 2009 Thomson South-Western. All Rights Reserved Slide 27 Example: Panthers Football Team Insights Gained from the Preceding Scatter Diagram • The scatter diagram and trendline indicate a positive relationship between the number of interceptions and the number of points scored. • Higher points scored are associated with a higher number of interceptions. • The relationship is not perfect; all plotted points in the scatter diagram are not on a straight line. © 2009 Thomson South-Western. All Rights Reserved Slide 28 Tabular and Graphical Procedures Data Qualitative Data Quantitative Data Tabular Methods Graphical Methods Tabular Methods • Frequency Distribution • Relative Freq. Distribution • Percent Freq. Distribution • Crosstabulation • Bar Graph • Pie Chart • Frequency Dist. • Rel. Freq. Dist. • % Freq. Dist. • Cum. Freq. Dist. • Cum. Rel. Freq. Distribution • Cum. % Freq. Distribution • Crosstabulation © 2009 Thomson South-Western. All Rights Reserved Graphical Methods • Dot Plot • Histogram • Ogive • Stem-andLeaf Display • Scatter Diagram Slide 29 End of Chapter 2, Part B © 2009 Thomson South-Western. All Rights Reserved Slide 30