Stat 220121 Rules for Constructing a Frequency Distribution, Lecture Notes 1, 25.02.
2014
Example: Raw data. The table below shows the number of cars arriving to a petrol station to fill gas and
check oil over the last 20 days. Our aim is to form a frequency distribution and interpret it.
65 98 55 62 79
70 62 66 80 94
59 51 90 72 56
79 63 73 71 85
For example, the first day 65 cars arrive, the second day 98 cars arrive, and so on. Our variable is the
number of cars arriving at the petrol station in any single day. Therefore X is the number of cars, a discrete
variable.
Step 1: Find k (number of classes) either using the “2k > n” rule or arbitrarily set k = any integer (whole
number) you like. For a small set of observations (like n = 20, as in this example, or around 20), choose k =
5. We know that 25 = 32. So k = 5 is a good number, since it also satisfies the “2k > n” rule, i.e., 32 > 20.
Step 2: Find the lowest and highest number within the raw data. Here L = 51, and M = 98. Then find the
range of the distribution which is R = H – L. Then divide the range (H –L) by k and obtain i which is called
the class width (or class interval size).
i = (H-L)/k = (98-51)/5 = 47/5 = 9.4 = 10.
Do not forget that any value of this ratio greater than 9, like 9.1 must be raised to 10.
Step 3. Set the lower limit of the first class equal to L. So the lower limit of the first class is 51. To obtain
the lower limit of the second class add i (= 10) to the lower limit of the first class. Thus the lower limit of the
second class is 61 (= 51 + 10). Continue this way to find the lower limits of all other higher classes.
Step 4. To find the upper limit of the first class subtract 1 from the lower limit of the second class. So the
upper limit of the first class 60 (= 61 – 1). To find the upper limit of the second class add i to the upper limit
of the first class, or subtract 1 from the lower limit of the third class. Continue this way to find the upper
limits of the remaining higher classes.
Step 5. Tally. You know the tallying procedure from our earlier lecture notes. You should repeat the same
here. Finally you should check that the sum of the frequencies in all five classes must be equal to n = 20.
Lower limit Upper limit Lower boundary Upper boundary Midpoint f
51 60 50.5 60.5 55.5 4
61 70 60.5 70.5 65.5 6
71 80 70.5 80.5 75.5 6
81 90 80.5 90.5 85.5 2
91 100 90.5 100.5 95.5 2
Sum = total f = 20
Two new concepts:
i. The boundary point between the two adjacent (neighboring) classes equals to the upper limit of the lower
class plus the lower limit of the upper class divided by 2. There are two boundary points: Lower and upper.
ii. Midpoints or mid values: The midpoint of any class equals to the lower limit plus the upper limit
divided by 2. Or, equivalently, it is equal to the lower boundary plus the upper boundary divided by 2.
Interpretation: i. Number of cars arriving to the petrol station varies between 51 and 100.
ii. Most arrivals occur between 61 and 70 (second class) as well as between 71 and 80 (third class). In these
two classes frequency is the highest (6 each). iii. The typical arrival number varies between 65.5 and 75.5.
Stat 220121 Graphical presentation: 26. 02. 2014
Histogram
X: Selling Price of cars ($1000), in a showroom. In this showroom 80 cars are sold in one year.
i. Frequency distribution is given in the following table
Midpo Relativ
Lower Upper int e
Class Lower Upper freque bound bound (Mid Freque
No Limit Limit ncy ary ary value) ncy (%)
1 12 14 8 11.5 14.5 13 10.0
2 15 17 23 14.5 17.5 16 28.8
3 18 20 17 17.5 20.5 19 21.3
4 21 23 18 20.5 23.5 22 22.5
5 24 26 8 23.5 26.5 25 10.0
6 27 29 4 26.5 29.5 28 5.0
7 30 32 2 29.5 32.5 31 2.5
80 100.0
ii. Construct a histogram which shows the same information on a graph.
Histogram
25
20
15
10
0
13 16 19 22 25 28 31
To draw a histogram, mark the class boundaries on the horizontal (X) axis. In Excel only midpoints are
marked on the X-axis. The height of each rectangle shows the class frequency on the vertical axis (Y). The
length shows the class size on the horizontal axis. For example for the first class the boundaries are Bl =
11.5 and Bu = 14.5, and so the length of the first rectangle is 3 (= 14.5 – 11.5). The height of the first
rectangle is f1 = 8, from the frequency table above. For the second class the length is 3 (= 17.5 – 14.5), and
the height is f2 = 23 from the frequency table.
iii. Interpretation. Second class has the highest frequency, 23. So most of cars are sold at a price around
$16000. In percentage or relative terms 28.8 percent of the cars are sold at a price around $16000.
iv. Most expansive cars are sold at a price of $31000. Only 2 cars (2.5% of the total) are sold at this
price.