Business Statistics, 3e
by Ken Black
D iscrete D istributions
Chapter 2
Charts
& Graphs
Learning Objectives
Construct the following:
a frequency distribution
a histogram
a frequency polygon
an ogive, a pie chart, and
a stem and leaf plot
Ungrouped vs Grouped Data
Ungrouped data
have not been summarized in any way
are also called raw data
Grouped data
have been organized into a frequency
distribution
Example of Ungrouped Data
42 26 32 34 57
30 58 37 50 30
Ages of a Sample
53 40 30 47 49 of Managers
50 40 32 31 40 from Urban
52 28 23 35 25 Child Care
30 36 32 26 50 Centers in the
55 30 58 64 52 United States
49 33 43 46 32
61 31 30 40 60
74 37 29 43 54
Steps to Constructing a Frequency
Distribution
Find the RANGE
(ie. Highest value - lowest value)
Determine the number of CLASSES
(ie. Classification intervals)
Compute the WIDTH of the class
(ie. RANGE / # CLASSES)
Construct the Frequency Distribution
Frequency Distribution Example:
50 Childcare Manager’s Ages
42 26 32 34 57
Range = Largest - Smallest
30 58 37 50 30
53 40 30 47 49
= 77 - 20
50 40 32 31 40 = 57
52 28 20 35 25
30 36 32 26 50
55 30 58 64 52 Smallest
49 33 43 46 32
61 31 30 40 60 Largest
77 37 29 43 54
Number of Classes and Class Width
The number of classes should be between 5 and 15.
Fewer than 5 classes cause excessive summarization.
More than 15 classes leave too much detail.
Use 2 >k n rule
Class Width
Divide the range by the number of classes for an
approximate class width
Round up to a convenient number
57
Approximat e Class Width = = 9.5
6
Class Width = 10
Frequency Distribution of Child Care
Manager’s Ages
Class Interval Frequency
20-under 30 6
30-under 40 18
40-under 50 11
50-under 60 11
60-under 70 3
70-under 80 1
Class Midpoint
beginning class endpoint + ending class endpoint
Class Midpoint =
2
30 + 40
=
2
= 35
1
Class Midpoint = class beginning point + class width
2
1
= 30 + 10
2
= 35
Relative Frequency
Relative
Class Interval Frequency Frequency
20-under 30 6 .12
6
30-under 40 18 .36
50
40-under 50 11 .22
50-under 60 11 18 .22
60-under 70 3 50 .06
70-under 80 1 .02
Total 50 1.00
Cumulative Frequency
Cumulative
Class Interval Frequency Frequency
20-under 30 6 6
30-under 40 18 24
40-under 50 11 35
50-under 60 11 18 + 6 46
60-under 70 3 11 + 24 49
70-under 80 1 50
Total 50
Cumulative Relative Frequencies
Cumulative
Relative Cumulative Relative
Class Interval Frequency Frequency Frequency Frequency
20-under 30 6 .12 6 .12
30-under 40 18 .36 24 .48
40-under 50 11 .22 35 .70
50-under 60 11 .22 46 .92
60-under 70 3 .06 49 .98
70-under 80 1 .02 50 1.00
Total 50 1.00
Common Statistical Graphs
Histogram -- vertical bar chart of frequencies
Frequency Polygon -- line graph of frequencies
Ogive -- line graph of cumulative frequencies
Pie Chart -- proportional representation for
categories of a whole
Histogram
Class Interval Frequency
20
20-under 30 6
30-under 40 18
40-under 50 11
Frequency
10
50-under 60 11
60-under 70 3
70-under 80 1 0
0 10 20 30 40 50 60 70 80
Years
Frequency Polygon
Class Interval Frequency
20
20-under 30 6
30-under 40 18
40-under 50 11
Frequency
10
50-under 60 11
60-under 70 3
70-under 80 1 0
0 10 20 30 40 50 60 70 80
Years
Ogive
Cumulative
Class Interval Frequency
60
20-under 30 6
30-under 40 24
40
Frequency
40-under 50 35
20
50-under 60 46
60-under 70 49
70-under 80 50
0
0 10 20 30 40 50 60 70 80
Years
2d Quarter
Second Quarter Truck
Production
Truck Company
A 357,411
Production in
B 354,936
the U.S.
C 160,997
(Hypothetical
D 34,099
values) E 12,747
Totals 920,190
Second Quarter
U.S. Truck Production
17%
4%
1%
39%
39%
A B C D E
Pie Chart Calculations
for Truck Producer Company A
2d Quarter
Truck
Production
Company Proportion Degrees
A 357,411 .388 140
B 354,936 .386 139
357, 411
C = 160,997 .175 63
920,190
D 34,099 .037 13
. 388 360 =
E 12,747 .014 5
Totals 920,190 1.000 360