© 2012 McGraw-Hill Ryerson Limited © 2009 McGraw-Hill Ryerson Limited 1 Lind Marchal Wathen Waite © 2012 McGraw-Hill Ryerson Limited 2 Learning Objectives LO 1 Organize qualitative data into a frequency table. LO 2 Present a data frequency table as a bar chart or a pie chart. LO 3 Organize qualitative data into a frequency distribution. LO 4 Present a frequency distribution for quantitative data using histograms, frequency polygons, and cumulative frequency polygons. LO 5 Develop and interpret a stem-and-leaf display. © 2012 McGraw-Hill Ryerson Limited 3 LO 1 CONSTRUCTING A FREQUENCY DISTRIBUTION © 2012 McGraw-Hill Ryerson Limited 4 Frequency Table The Frequency Table is a grouping of qualitative data into mutually exclusive classes showing the number of observations in each class. The number of observations in each class is called the class frequency. Example: Dwelling Type Number of Listings Apartment 58 House 26 Townhouse 14 Total 98 TABLE 2–1 Frequency Table for Halifax Real Estate Listings by Type LO 1 © 2012 McGraw-Hill Ryerson Limited 5 Relative Class Frequency Class frequencies can be converted to relative class frequencies to show the fraction of the total number of observations in each class. A relative frequency captures the relationship between a class total and the total number of observations. Type Number of Listings Fraction Relative Frequency Percent Apartment 58 58/98 0.5918 59.18% House 26 26/98 0.2653 26.53% Townhouse 14 14/98 0.1429 14.29% 1.000 100.00% 98 TABLE 2–2 Relative Frequency Table of Halifax Real Estate Listings by Type LO 1 © 2012 McGraw-Hill Ryerson Limited 6 LO 2 GRAPHIC PRESENTATION OF QUALITATIVE DATA © 2012 McGraw-Hill Ryerson Limited 7 Bar Chart A graph in which the classes are reported on the horizontal axis and the class frequencies on the vertical axis. The class frequencies are proportional to the heights of the bars. Number of Halifax Real Estate Listings by Type 70 Number of Listing 60 50 40 30 20 10 0 Apartment House Dwelling Type Townhouse CHART 2–1 Listings by Type from the Halifax Area. LO 2 © 2012 McGraw-Hill Ryerson Limited 8 Bar Chart The horizontal axis shows the variable of interest and the vertical axis shows the amount, number or fraction of each of the possible outcomes. A distinguishing characteristic of a bar chart is that there is a distance or gap between the bars. Can depict any of the levels of measurement • nominal • ordinal • interval • ratio LO 2 © 2012 McGraw-Hill Ryerson Limited 9 Bar Chart in Excel Bar Chart : Income Based on Educational Level LO 2 © 2012 McGraw-Hill Ryerson Limited 10 Pie Chart A chart that shows the proportion or percent that each class represents of the total number of frequencies. TABLE 2–3 OLG Lottery Proceeds Use of Profits Percent Share (%) Prizes 51.8 Province of Ontario 30.3 Retailers 7.1 Operating Expenses 8.4 Government of Canada 2.4 100.0 LO 2 © 2012 McGraw-Hill Ryerson Limited 11 Pie Chart Each slice of the pie represents the relative share of the each component. OLC use of Profit 8.4 2.4 Prizes 7.1 Province of Ontario Retailers Operating Expenses 30.3 51.8 Government of Canada CHART 2–2 Pie Chart of OLG Use of Profits LO 2 © 2012 McGraw-Hill Ryerson Limited 12 Pie Chart in Excel LO 2 © 2012 McGraw-Hill Ryerson Limited 13 Example – Ease of Navigation on Ski Lodge Website A company is test marketing its new web site and is interested in how easy its web page design is to navigate. It randomly selected 200 regular Internet users and asked them to perform a search task on the web page. Each person was asked to rate the ease of navigation as poor, good, excellent, or awesome. The results are shown in the following table: Awesome 100 Good 30 Excellent 60 Poor 10 1. What level of measurement is used for ease of navigation? 2. Draw a bar chart for the survey results. 3. Draw a pie chart for the survey results. LO 2 © 2012 McGraw-Hill Ryerson Limited 14 Solution - Ease of Navigation on Ski Lodge Website 1. The data are measured on an ordinal scale. That is, the scale ranks the ease of navigation from a low of “poor” to a high of “awesome.” Also, the interval between each rating is unknown so it is impossible, for example, to conclude that a rating of good is twice the value of a poor rating. LO 2 © 2012 McGraw-Hill Ryerson Limited 15 Solution - Ease of Navigation on Ski Lodge Website Frequency Awesome 100 50% Excellent 60 30% Good 30 15% Poor 10 5% 200 100% Total 2. 120 Percent (%) 3. Ease of Navigation on Ski Lodge Website Ease of Navigation on Ski Lodge Website Frequency 100 Poor 5% 80 Awesome Good 15% 60 Excellent Good 40 Excellent 30% 20 Awesome 50% Poor 0 Awesome LO 2 Excellent Good Poor © 2012 McGraw-Hill Ryerson Limited 16 You Try It Out! A social welfare NGO decided to plant fruit trees near a city park. Below are the number of each fruit tree to be planted. (a) (b) (c) (d) LO 2 Is the data quantitative or qualitative? Why? What is the table called? Develop a bar chart to depict the information. Develop a pie chart using the relative frequencies. © 2012 McGraw-Hill Ryerson Limited Fruit Plant Number Mango 45 Pineapple 36 Strawberry 57 Apple 62 Total 200 17 LO 3 CONSTRUCTING FREQUENCY DISTRIBUTIONS: QUANTITATIVE DATA © 2012 McGraw-Hill Ryerson Limited 18 Frequency distribution A grouping of data into mutually exclusive classes showing the number of observations in each class. 1. 2. 3. 4. 5. LO 3 Decide on the number of classes Determine the class interval or width Set the individual class limits Tally the list prices into the classes Count the number of items in each class © 2012 McGraw-Hill Ryerson Limited 19 Example – Constructing Frequency Distributions: S&P/TSX composite index historical prices reports for 42 days from Sep Oct 11, 2011 to Dec 6, 2011 is given in the below table. What is the highest list volume? What is the lowest list volume? Around what value do the list volumes tend to cluster? lowest LO 3 highest 234,979,276 186,585,706 222,262,031 199,379,802 239,914,383 202,470,683 294,246,336 114,691,255 264,218,706 205,585,826 330,546,204 204,172,672 188,982,337 48,895,537 182,342,563 190,776,204 236,790,466 158,833,777 195,798,266 189,951,023 136,413,027 258,625,081 286,073,224 222,924,810 201,004,892 199,922,254 165,644,472 210,858,029 231,505,190 206,240,504 282,704,137 195,617,196 192,236,938 295,017,949 185,069,468 263,435,512 222,462,949 208,877,067 222,082,015 290,368,405 196,843,135 316,413,039 © 2012 McGraw-Hill Ryerson Limited 20 Solution – Constructing Frequency Distributions: Step 1: Decide on the number of classes. A useful recipe to determine the number of classes (k) is the “2 to the k rule.” There were 42 days. So n = 42. If we try k = 5, which means we would use 5 classes, then 25 = 32, somewhat less than 42. Hence, 5 is not enough classes. If we let k = 6, then 26= 64, which is greater than 42. So the recommended number of classes is 6. LO 3 © 2012 McGraw-Hill Ryerson Limited 21 Solution – Constructing Frequency Distributions: Step 2: Determine the class interval or width. The classes all taken together must cover at least the distance from the lowest value in the raw data up to the highest value. Or i H L k Where: i is the class interval H is the highest observed value L is the lowest observed value K is the number of classes LO 3 © 2012 McGraw-Hill Ryerson Limited 22 Solution – Constructing Frequency Distributions: ($330,546,204- $48,895,537)/6 = $46941778 Round up to some convenient number, such as a multiple of 10 or 100. Use a class width of $50 000 000 as it will be easily understood. Step 3: Set the individual class limits. $0 to under $50 000 000 200 000 000 to under 250 000 000 50 000 000 to under 100 000 000 250 000 000 to under 300 000 000 100 000 000 to under 150 000 000 300 000 000 to under 350 000 000 150 000 000 to under 200 000 000 LO 3 © 2012 McGraw-Hill Ryerson Limited 23 Solution – Constructing Frequency Distributions: Step 4: Tally the list prices into the classes. Class ($) Tallies 0 to 50 000 000 50 000 000 to under 100 000 000 100 000 000 to under 150 000 000 150 000 000 to under 200 000 000 200 000 000 to under 250 000 000 250 000 000 to under 300 000 000 300 000 000 to under 350 000 000 LO 3 © 2012 McGraw-Hill Ryerson Limited 24 Solution – Constructing Frequency Distributions: Step 5: Count the number of items in each class. List Volume Frequency 0 to 50 000 000 1 50 000 000 to under 100 000 000 0 100 000 000 to under 150 000 000 2 150 000 000 to under 200 000 000 14 200 000 000 to under 250 000 000 15 250 000 000 to under 300 000 000 8 300 000 000 to under 350 000 000 2 Total 42 Frequency Distribution of List Volume LO 3 © 2012 McGraw-Hill Ryerson Limited 25 You Try It Out! The profit earned, in dollars, for the first quarter of last year by the 10 distributors of a refrigerator company in the city is given below : $2130 3250 2657 4000 3843 5000 3500 6500 5900 4567 (a) What are the values such as $2130 and $3250 called? (b) Using $2000 up to $2500 as the first class, $2500up to $3000 as the second class, and so forth, organize the quarterly commissions into a frequency distribution. (c) What are the numbers in the right column of your frequency distribution called? (d) Describe the distribution of quarterly commissions, based on the frequency distribution. LO 3 © 2012 McGraw-Hill Ryerson Limited 26 Class Intervals and Class Midpoints Class midpoint Class interval The midpoint is halfway between the lower limits of two consecutive classes. To determine the class interval, subtract the lower limit of the class from the lower limit of the next class. It is computed by adding the lower limits of consecutive classes and dividing the result by two. LO 3 You can also determine the class interval by finding the difference between consecutive midpoints. © 2012 McGraw-Hill Ryerson Limited 27 A Software Example The following is a frequency distribution, produced by MegaStat, showing the List Volume of S&P/TSX composite index historical prices. (in Millions) List Volume Lower LO 3 Cumulative Upper Midpoint Width Frequency Percent Frequency Percent 0 < 50 250 50 1 2.38% 1 2.38% 50 < 100 750 50 0 0.00% 1 2.38% 100 < 150 125 50 2 4.76% 3 7.14% 150 < 200 175 50 14 33.33% 17 40.48% 200 < 250 225 50 15 35.71% 32 76.19% 250 < 300 275 50 8 19.05% 40 95.24% 300 < 350 325 50 2 4.76% 42 100.00% 42 100.00% © 2012 McGraw-Hill Ryerson Limited 28 You Try It Out! Jack had 83 customers in his book store last Sunday. The customers spent between $43.50 and $450. Jack wants to construct a frequency distribution of the amount spent by his customers for that day. (a) How many classes would you use? (b) What class interval would you suggest? (c) What actual classes would you suggest? LO 3 © 2012 McGraw-Hill Ryerson Limited 29 Relative Frequency Distribution A relative frequency distribution converts the frequency to a percent. To convert a frequency distribution to a relative frequency distribution, each of the class frequencies is divided by the total number of observations. LO 3 © 2012 McGraw-Hill Ryerson Limited 30 Example - Relative Frequency Distribution Find the relative frequency Distribution for the given data of S&P/TSX composite index historical prices. LO 3 © 2012 McGraw-Hill Ryerson Limited 31 Solution - Relative Frequency Distribution The relative frequency distribution is: LO 3 List Volume Frequency Relative Frequency Found by $0 to $50 000 000 1 0.024 1/42 50 000 000 to under 100 000 000 0 0 0/42 100 000 000 to under 150 000 000 2 0.048 2/42 150 000 000 to under 200 000 000 14 0.333 14/42 200 000 000 to under 250 000 000 15 0.357 15/42 250 000 000 to under 300 000 000 8 0.190 8/42 300 000 000 to under 350 000 000 2 0.048 2/42 Total 42 1.000 42/42 © 2012 McGraw-Hill Ryerson Limited 32 You Try It Out! Refer to the above table, which shows the relative frequency for the List Volume of S&P/TSX composite index historical prices. (a) How many list volume were listed for $50 000 000 to under $10 000 000? (b) What percent of list volume were listed for $200 000 000 to under $250 000 000? (c) What percent of the list volume were listed at $250 000 000 or more? LO 3 © 2012 McGraw-Hill Ryerson Limited 33 LO 4 GRAPHIC PRESENTATION OF A FREQUENCY DISTRIBUTION © 2012 McGraw-Hill Ryerson Limited 34 Graphic Presentation of a Frequency Distribution Three charts that will help portray a frequency distribution graphically are : 1.Histogram 2.Frequency Polygon 3.Cumulative Frequency Polygon LO 4 © 2012 McGraw-Hill Ryerson Limited 35 Histogram A bar graph in which the classes are marked on the horizontal axis and the class frequencies on the vertical axis. The class frequencies are represented by the heights of the bars. The bars are drawn adjacent to each other. LO 4 © 2012 McGraw-Hill Ryerson Limited 36 Histogram Characteristics Very similar to the bar chart showing the distribution of qualitative data. Classes are marked on the horizontal axis and the class frequencies on the vertical axis. Quantitative data is usually measured using scales that are continuous, not discrete. The horizontal axis represents all possible values, and the bars are drawn adjacent to each other. LO 4 © 2012 McGraw-Hill Ryerson Limited 37 Example - Histogram Construct a histogram for the frequency distribution given below. What conclusions can you reach based on the information presented in the histogram? List Volume (in Million) Midpoint Frequency 0 to 50 000 000 250 1 50 000 000 to under 100 000 000 750 0 100 000 000 to under 150 000 000 1250 2 150 000 000 to under 200 000 000 1750 14 200 000 000 to under 250 000 000 2250 15 250 000 000 to under 300 000 000 2750 8 300 000 000 to under 350 000 000 3250 2 Total LO 4 © 2012 McGraw-Hill Ryerson Limited 42 38 Solution - Histogram Histogram of Frequency Distribution of S&P/TSX composite index historical prices 16 15 14 14 List Volume 12 10 8 8 6 4 2 2 2 1 0 0 250 LO 4 750 1250 1750 Mid Point 2250 © 2012 McGraw-Hill Ryerson Limited 2750 3250 39 Solution - Histogram Based on the above histogram, we conclude: 1. The lowest list volume is between $0 and under $50 000 000. The highest list volume is between $300 000 000 to under $350 000 000. 2. The largest class frequency is the $200 000 000 to under $250 000 000 class. A total of 15 of the 42 volumes are within this volume range. 3. Eighty-two of the list volume, or 83.7 percent, had a list volume between $0 and to under $800 000. LO 4 © 2012 McGraw-Hill Ryerson Limited 40 Histogram In Excel Follow the commands to create the frequency distribution. A check automatically appears in the box to the left of the word Histogram. This will produce a histogram with percents on the Y-axis. To change this default to frequencies: 1. Right click inside the plot area of the histogram. Choose Source Data. 2. Click the Series tab. You need to change the range in the Values: box. 3. In the Values: box, change the range from the Percent column to the Frequency column. Click OK. Edit the chart titles. LO 4 © 2012 McGraw-Hill Ryerson Limited 41 Frequency Polygon Characteristics Shows the shape of a distribution and is similar to a histogram Consists of line segments connecting the points formed by the intersections of the class midpoints and the class frequencies The midpoint of each class is scaled on the X-axis and the class frequencies on the Y-axis To complete the frequency polygon, midpoints are added to both ends of the X-axis to “anchor” the polygon at zero frequencies LO 4 © 2012 McGraw-Hill Ryerson Limited 42 Example – Frequency Polygon Construct a frequency polygon for the frequency distribution given below. LO 4 List Volume ($ million) Midpoint Frequency 0 to 50 50 to under 100 100 to under 150 150 to under 200 200 to under 250 250 to under 300 300 to under 350 Total 250 750 1250 1750 2250 2750 3250 1 0 2 14 15 8 2 42 © 2012 McGraw-Hill Ryerson Limited 43 Solution - Frequency Polygon 16 15 14 14 12 10 8 8 6 4 2 2 2 1 0 0 250 750 1250 1750 2250 2750 3250 Frequency Polygon of S&P/TSX composite index historical prices LO 4 © 2012 McGraw-Hill Ryerson Limited 44 Advantages LO Histogram Frequency Polygon Depicts each class as a rectangle, with the height of the rectangular bar representing the number in each class Allows us to compare directly two or more frequency distributions by constructing one on top of the other 4 © 2012 McGraw-Hill Ryerson Limited 45 Frequency Polygon In Excel To produce a frequency polygon using MegaStat, follow the commands for the histogram, but select Polygon LO 4 © 2012 McGraw-Hill Ryerson Limited 46 You Try It Out! The result of an exam is shown in the following frequency distribution. Marks (% Percentage) Number of Students 50 to under 55 15 55 to under 60 10 60 to under 65 16 65 to under 70 8 70 to under 75 9 (a) Portray the Marks as a histogram. (b) Portray the Marks as a relative frequency polygon. (c) Summarize the important facets of the distribution (such as classes with the highest and lowest frequencies). LO 4 © 2012 McGraw-Hill Ryerson Limited 47 Cumulative Frequency Distribution It is also called an ogive. There are two types : 1. Less-than cumulative frequency distribution 2. More-than cumulative frequency distribution LO 4 © 2012 McGraw-Hill Ryerson Limited 48 Example – Less-Than Cumulative Frequency Distribution The frequency distribution of the listings from S&P/TSX composite index historical prices is given below. Construct a less-than cumulative frequency polygon. Fifty percent of the volumes were listed for less than what amount? Twenty-five of the list volumes were less than what amount? List Volume Frequency $0 to $50 000 000 1 50 000 000 to under 10 000 000 0 10 000 000 to under 150 000 000 2 150 000 000 to under 200 000 000 14 200 000 000 to under 250 000 000 15 250 000 000 to under 300 000 000 8 300 000 000 to under 350 000 000 2 Total LO 4 42 © 2012 McGraw-Hill Ryerson Limited 49 Solution – Less-Than Cumulative Frequency Distribution List Volume ($ million) 0 to 50 Frequency Found by 1 Cumulative frequency 1 50 to under 100 0 1 1+0 100 to under 150 2 3 1+0+2 150 to under 200 14 17 1+0+2+14 200 to under 250 15 32 1+0+2+14+15 250 to under 300 8 40 1+0+2+14+15+8 300 to under 350 2 42 1+0+2+14+15+8+2 Total 42 1 Less-than Cumulative Frequency Distribution of the listings from S&P/TSX composite index historical prices. LO 4 © 2012 McGraw-Hill Ryerson Limited 50 Solution – Less-Than Cumulative Frequency Distribution To begin the plotting, 1 listings were less than $5 000 000, so the first point is X = 500 and Y = 1. The coordinates for the next point are X = 1000 and Y =3. The rest of the points are plotted as follows: LO 4 List Price ($ million) Cumulative Frequency Less than 50 1 50 to under 100 1 100 to under 150 3 150 to under 200 17 200 to under 250 32 250 to under 300 40 300 to under 350 42 © 2012 McGraw-Hill Ryerson Limited 51 Solution – Less-Than Cumulative Frequency Distribution Cumulative Frequency Less-Than Cumulative Frequency Distribution LO 4 100 90 80 70 60 50 40 30 20 10 0 40 42 32 17 1 Less than $500 1 500 to under 1000 3 100 to under 1500 1500 to 2000 to 2500 to 3000 to under under under under 2000 2500 3000 3500 List Volume © 2012 McGraw-Hill Ryerson Limited 52 Example – More-Than Cumulative Frequency Distribution The frequency distribution of the listings from the S&P/TSX composite index historical prices is repeated from below table. List Volume Frequency 0 to 50 000 000 50 000 000 to under 100 000 000 100 000 000 to under 150 000 000 150 000 000 to under 200 000 000 200 000 000 to under 250 000 000 250 000 000 to under 300 000 000 300 000 000 to under 350 000 000 Total 1 0 2 14 15 8 2 42 Construct a more-than cumulative frequency polygon. Fifty percent of the volumes were listed for less than what amount? Twenty-five of the list volumes were less than what amount? LO 4 © 2012 McGraw-Hill Ryerson Limited 53 Solution – More-Than Cumulative Frequency Distribution To begin the plotting, 42 listings were 0 or more, so the first point is X = 0 and Y = 42. The coordinates for the next point are X = 500 and Y = 0. The rest of the points are plotted as follows. List Price Cumulative 0 or more 50 000 000 or more 100 000 000 or more 150 000 000 or more 200 000 000 or more 250 000 000 or more 300 000 000 or more 350 000 000 or more LO 4 © 2012 McGraw-Hill Ryerson Limited Frequency 42 0 41 39 25 10 2 0 54 Solution – More-Than Cumulative Frequency Distribution More-Than Cumulative Frequency Distribution 100 Cumulative Frequency 90 80 70 60 50 40 42 25 20 10 0 0 or more 4 39 30 10 LO 41 2 0 0 500 or 1000 or 1500 or 2000 or 2500 or 3000 or 3500 or more more more more more more more List Volume © 2012 McGraw-Hill Ryerson Limited 55 Cumulative Frequency Polygon In Excel To produce a less-than cumulative frequency polygon (Ogive) using MegaStat, follow the commands for the histogram, but select Ogive LO 4 © 2012 McGraw-Hill Ryerson Limited 56 You Try It Out! A sample of number of transactions performed per hour by 20 employees in a bank is given in following table No. of Transactions per Hour Number of Employees 4 to under 9 4 9 to under 13 7 13 to under 17 6 17 to under 21 3 (a) What is the table called? (b) Develop a less-than and more-than cumulative frequency distribution and portray the distribution in cumulative frequency polygons. (c) Based on the cumulative frequency polygon, how many employees performed10 transactions per hour or less? Half of the employees performed how many transactions per hour? Four employees performed how many transactions or less? LO 4 © 2012 McGraw-Hill Ryerson Limited 57 LO 5 STEM-AND-LEAF DISPLAYS © 2012 McGraw-Hill Ryerson Limited 58 Stem & Leaf Displays A statistical technique to present a set of data Each numerical value is divided into two parts The leading digit(s) becomes the stem and the trailing digit the leaf • The stems are located along the vertical axis • The leaf values are stacked against each other along the horizontal axis Advantage over a frequency distribution is: • The identity of each observation is not lost • The digits themselves give a picture of the distribution • The cumulative frequencies are also reported LO 5 © 2012 McGraw-Hill Ryerson Limited 59 Constructing a Stem & Leaf Display Suppose the seven observations in a 90 up to 100 class are: 96, 94, 93, 94, 95, 96, and 97. The stem value is the leading digit or digits, in this case 9. The leaves are the trailing digits. The stem is placed to the left of a vertical line and the leaf values to the right. Finally, we sort the values within each stem from smallest to largest. 9|6434567 9|3445667 LO 5 © 2012 McGraw-Hill Ryerson Limited 60 Example - Stem & Leaf Displays Listed in the table below is the number of 30-second radio advertising spots purchased by each of the 45 members of the Greater Hilltown Automobile Dealers Association last year. Organize the data into a stem-and-leaf display. Around what values do the number of advertising spots tend to cluster? What is the fewest number of spots purchased by a dealer? The largest number purchased? 96 93 88 118 128 95 113 96 108 94 148 156 139 142 94 105 125 155 155 103 112 127 117 120 112 135 132 111 125 102 107 139 136 119 97 87 119 133 125 143 120 103 113 124 138 Number of Advertising Spots Purchased by Members of the Greater Hilltown Automobile Dealers Association LO 5 © 2012 McGraw-Hill Ryerson Limited 61 Solution - Stem & Leaf Displays From the data in the table, we note that the smallest number of spots purchased is 88. So we will make the first stem value 8. The largest number is 156, so we will have the stem values begin at 8 and continue to 15. The first number in the table is 96, which will have a stem value of 9 and a leaf value of 6. Moving across the top row, the second value is 93 and the third is 88. LO 5 © 2012 McGraw-Hill Ryerson Limited 62 Solution - Stem & Leaf Displays After organizing all the data, the final table of stem-and-leaf chart looks as follows: Stem LO 5 Leaf 8 78 9 3445667 10 234578 11 122337899 12 00455578 13 3566899 14 238 15 556 © 2012 McGraw-Hill Ryerson Limited 63 Stem & Leaf Displays in Excel Stem & Leaf In Excel LO 5 © 2012 McGraw-Hill Ryerson Limited 64 You Try It Out! The male-female ratios for 22 different areas in the city are as shown below : 5.4 6.2 8.9 10.1 11.3 7.9 4.8 10.3 8.7 9.4 12.0 10.5 5.9 5.4 8.6 6.9 9.8 7.0 12.4 8.9 7.7 10.3 Organize this information into a stem-and-leaf display. (a) How many values are less than 7.0? (b) List the values in the 8.0 up to 9.0 category. (c) What is the middle (median) value? (d) What are the largest and the smallest price-earnings ratios? LO 5 © 2012 McGraw-Hill Ryerson Limited 65 Chapter Summary I. A frequency table is a grouping of qualitative data into mutually exclusive classes showing the number of observations in each class. II. A relative frequency table shows the fraction or percent of the number of observations in each class. III. A bar chart is a graphic representation of a frequency table. IV. A pie chart shows the proportion each distinct class represents of the total number of frequencies. V. A frequency distribution is a grouping of data into mutually exclusive classes showing the number of observations in each class. © 2012 McGraw-Hill Ryerson Limited 66 Chapter Summary A. The steps in constructing a frequency distribution are: 1. Decide on the number of classes. 2. Determine the class interval . 3. Set the individual class limits. 4. Tally the raw data into the classes. 5. Count the number of tallies in each class. B. The class frequency is the number of observations in each class. C. The class interval is the difference between the limits of two consecutive classes. © 2012 McGraw-Hill Ryerson Limited 67 Chapter Summary D. The class midpoint is halfway between the limits of consecutive classes. VI. A relative frequency distribution shows the percent of observations in each class. VII. There are three methods for graphically portraying a frequency distribution. A. A histogram portrays the number of frequencies in each class in the form of a rectangle. B. A frequency polygon consists of line segments connecting the points formed by the intersections of the class midpoints and the class frequency. C. A cumulative frequency polygon shows the number of observations below or above given values. © 2012 McGraw-Hill Ryerson Limited 68 Chapter Summary VIII. A stem-and-leaf display is an alternative to a frequency distribution. A. The leading digit is the stem and the trailing digit, the leaf. B. The advantages of the stem-and-leaf chart over a frequency distribution include 1. The identity of each observation is not lost. 2. The digits themselves give a picture of the distribution. 3. The cumulative frequencies are also shown. © 2012 McGraw-Hill Ryerson Limited 69 Chapter Summary V. There are many charts used in business. A. A line chart is ideal for showing the trend or sales of income over time. B. Showing changes in nominal scale data. C. Pie charts are useful for showing the percent that various components compose of the total. © 2012 McGraw-Hill Ryerson Limited 70