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Pepsi Market Share in Pie Chart Analysis

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0% found this document useful (0 votes)
8 views38 pages

Pepsi Market Share in Pie Chart Analysis

Uploaded by

muzafar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter 2

Describing Data:
Frequency Tables, Frequency
Distributions, and Graphic Presentation
Learning Objectives
LO2-1 Summarize qualitative variables with
frequency and relative frequency tables.

LO2-2 Display a frequency table using a bar or pie


chart.

LO2-3 Summarize quantitative variables with


frequency and relative frequency distributions.

LO2-4 Display a frequency distribution using a


histogram or frequency polygon.
LO2-1 Summarize qualitative variables with
frequency and relative frequency tables.

Frequency Table

FREQUENCY TABLE A grouping of qualitative data


into mutually exclusive and collectively exhaustive
classes showing the number of observations in each
class.

*Use date set of Applewood Group available in Appendix A4 at the end of textbook
LO2-2 Display a frequency
table using a bar or pie chart.
Bar Charts

BAR CHART A graph that shows qualitative classes on the


horizontal axis and the class frequencies on the vertical axis.
The class frequencies are proportional to the heights of the bars.
LO2-2

Pie Charts

PIE CHART A chart that shows the proportion or percent


that each class represents of the total number of frequencies.

2-8
Bar Chart versus Pie Chart

Pie and bar charts both serve to show frequency and relative
frequency tables.

• Pie charts are used to • Bar charts are


show and compare the preferred when the goal
differences in is to compare the
percentage of number of frequency
observations. of observations for each
value.
• Comparison of variables • Repetition of variable

2-10
LO2-2

Example
It randomly selected 200 regular Internet users and asked them
to perform a search task on the website. Each person was
asked to rate the relative ease of navigation as poor, good,
excellent, or awesome. The results are shown in the table.

1. What type of measurement scale is used for ease of navigation?


2. Draw a bar chart for the survey results.
3. Draw a pie chart for the survey results.
LO2-2

Solution
1. The data is measured on an ordinal scale. The
interval between each rating is unknown so it can’t
be interval level of measurement.

2. Bar chart
LO2-2

Solution

3. Pie chart
LO2-3 Summarize quantitative variables with
frequency and relative frequency distributions.

Frequency Distribution
FREQUENCY DISTRIBUTION A grouping of
quantitative data into mutually exclusive and collectively
exhaustive classes(intervals) showing the number of
observations in each class.

Example:
Frequency distribution of profits
for Applewood Auto Group
LO2-3

Frequency Distribution
Class interval: The
class interval is obtained
by subtracting the lower
limit of a class from the
lower limit of the next
class.
Class frequency: The
number of observations in
each class.
Class midpoint: A point that
divides a class into two
equal [Link] is the
average of the upper
and lower class limits.
LO2-3

Creating a Frequency Distribution


Table – Example
Kathryn Ball of the Applewood
Auto Group wants to describe the
data collected on the profits for
the 180 vehicles sold last month
at the four Applewood locations.
She would like to know:

1. What is the typical profit for the


180 vehicles sold?
2. What is the largest profit on
any sale?
3. What is the lowest profit on
any sale?
4. What is the typical value of
profit or around what value of
profit does the data tend to
cluster?
LO2-3

Frequency Distribution – Example


Continued

• Step 1: Decide on the number of classes.


Typically, good number of classes should be between 5 and 20, all
of equal width; be mutually exclusive; continuous; and exhaustive.

A useful recipe to determine the number of classes (k) is:


the “2 to the k rule,” such that 2k > n.

• There were 180 vehicles sold, so n = 180.


• If we try k = 7, then 27 = 128, somewhat less than 180.
• Hence, 7 is not enough classes.
• If we let k = 8, then 28 = 256, which is greater than 180.
So, the recommended number of classes is 8.
2-17
Frequency Distribution – Example Continued

• Step 2: Determine the class interval or width.

The formula is: 𝑖 ≥ (𝐻– 𝐿)/𝑘 where i is the class interval, H is


the highest observed value, L is the lowest observed value,
and k is the number of classes.

Round up to some convenient (suitable ) number,


such as a multiple of 10 or 100. Use a
class width of $400.
2-18
LO2-3

Frequency Distribution – Example Continued

• Step 3: Set the individual class limits.

Note: To make the lower limit of the 1st class, use a multiple of
class interval. If not possible, then the lower lime should at least
be rounded. 2-19
LO2-3

Frequency Distribution – Example Continued

• Step 4:
Tally(count) the
vehicle profits
into the classes.

• Step 5: Count
the number of
items in each
class.

2-20
Information we get from frequency
distribution

• The profits from vehicle sales range between $200


and $3400
• The profits are concentrated between $1000 and
$3000. Within this range 87% of profit is gained
from 157 vehicles.
• For each class, we can determine the typical
profit/class midpoint. The midpoint best
represents or is typical of the profits of the
vehicles in that class. For example, Applewood
sold 8 vehicles with a typical profit of $400.
• The largest concentration , or highest frequency of
vehicles sold is in the $1800 up to $2200 class.
There are 45 vehicles in this class.
2-22
Drawbacks of Frequency Distribution

➢ We can’t pinpoint exact profit on any vehicle.


➢ We can’t tell what are the actual minimum and
actual maximum profits.

2-23
LO2-3

Relative Frequency distribution


• Frequencies can be converted to relative frequencies to
show the fraction of the total number of observations.

• A relative frequency captures the relationship between a


class and the total number of observations.

2-24
LO2-3

Relative class Frequency


Distribution
To convert a class frequency distribution to a relative class
frequency distribution, each of the class frequencies is divided
by the total number of observations.
LO2-4 Display a frequency distribution
using a histogram or frequency polygon.

Displays of Frequency Distributions


The three commonly used graphic
forms are:
▪ Histograms
▪ Frequency polygons
▪ Cumulative frequency distributions
LO2-4

Histogram
HISTOGRAM A 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 and the bars are drawn adjacent(next) to each other.
LO2-4

Frequency Polygon

• A frequency
polygon, similar to a
histogram, also shows
the shape of a
distribution.

It consists of line
segments connecting
the class midpoints of
the class frequencies.

2-29
LO2-4

Histogram versus Frequency Polygon

• Both provide a quick picture


of the main characteristics of
the data (highs, lows, points
of concentration, etc.)
• Advantage of the histogram:
It depicts each class as a
rectangle, with the height of the
rectangular bar representing the
number in each class.
• Advantage of the frequency
polygon: It allows us to
compare directly two or more
frequency distributions.
LO2-4
Cumulative Frequency Distribution
Try and check

1- A pie chart shows the relative market share of


cola products. The slice for Pepsi has a central
angle of 72 degrees. What is its market share?
Solution:
To calculate the market share represented by a 72-degree
slice of a pie chart, we use the fact that the total angle of a
circle is 360 degrees, which corresponds to 100% of the
market. The market share is proportional to the central
angle of the slice.
Formula:
𝐶𝑒𝑛𝑡𝑟𝑎𝑙 𝐴𝑛𝑔𝑙𝑒
Market Share= ( ∘ )×100
360
Substituting the values:
72°
Market Share= ( )×100= 20%
360 ∘
Conclusion:
Pepsi's market share is 20%.
Try & Check

• A total of 1,000 residents in Minnesota were asked which


season they preferred.

• One hundred liked winter best, 300 liked spring, 400 liked
summer, and 200 liked fall.

• Develop a frequency table and a relative frequency table to


summarize this information.
Answer key:

class frequency
winter 100
summer 400
spring 300
fall 200
total 1000
Try & Check
Try & Check
Answer key
• (a) Lowest= 51 , largest= 98
• Using the “2 to the k rule,” such that 2k > n.
• N=20 , k=5 since 25 =35> 20
• (b) 98-51/5=~10
• (c ) 50,
• (d) intervals Frequency Relative frequency
50-60 4 0.2
60-70 5 0.25
70-80 6 0.3
80-90 2 0.1
90-100 3 0.15
Total 20 1
Try and Check
The following chart shows the number of packages
shipped per day for the last 100 days. For example, the
first class shows that there were 5 days when the
number of packages shipped was 0 up to 5.
Try and Check

According the previous chart answer the following:


1. What is this chart called?
2. What is the total number of days?
3. What is the class interval?
4. What is the number of days in the 10 up to 15 class?
5. What is the relative frequency of days in the 10 up to 15
class?
6. What is the midpoint of the 10 up to 15 class?
7. On how many days were there 25 or more packages
shipped?
Try and Chek
The following frequency distribution in the next screen reports the
number of frequent flier miles, reported in thousands for employees
Inc. During the most recent quarter. According to that frequency table
answer the following questions:
1. How many employees were studied?
2. What is the midpoint of the second class?
3. Construct a frequency polygon?
4. What are the coordinates of the frequency polygon for the second
class?
5. Construct a histogram?
6. Interpret the frequent flier miles accumulated using the two
charts
Try and Check
Answer key :

Miles CF

Less than 3 5
Less than 6 17
Less than 9 40
Less than 12 48
Less than 15 50
Answer key

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