Describing Data:

Displaying and Exploring Data

Chapter 4

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
 GOALS

1. Develop and interpret a dot plot.

2. Develop and interpret a stem-and-leaf display.
3. Compute and understand quartiles, deciles, and
percentiles.
4. Construct and interpret box plots.
5. Compute and understand the coefficient of
skewness.
6. Draw and interpret a scatter diagram.
7. Construct and interpret a contingency table.

4-2
 Dot Plots

 A dot plot groups the data as little as possible and

the identity of an individual observation is not lost.
 To develop a dot plot, each observation is simply
displayed as a dot along a horizontal number line
indicating the possible values of the data.
 If there are identical observations or the
observations are too close to be shown individually,
the dots are “piled” on top of each other.

4-3
 Dot Plots - Examples

Reported below are the number of vehicles sold in the last 24 months at
Smith Ford Mercury Jeep, Inc., in Kane, Pennsylvania, and Brophy
Honda Volkswagen in Greenville, Ohio.
Construct dot plots and report summary statistics for the two small-town
Auto USA lots.

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4-5
  By looking at the dot plots, we can see that the
number of vehicles serviced at the Sheffield
dealership is more widely dispersed and has a larger
mean than at the Tionesta dealership. Several other
features of the number of vehicles serviced are:
 Tionesta serviced the fewest cars in any day, 23.
 Sheffield serviced 26 cars during their slowest day,
which is 4 cars less than the next lowest day.
 Tionesta serviced exactly 32 cars on four different
days. The numbers of cars serviced cluster around
36 for Sheffield and 32 for Tionesta
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 Stem-and-Leaf

 In Chapter 2, frequency distribution was used to organize data

into a meaningful form.
 A major advantage to organizing the data into a frequency
distribution is that we get a quick visual picture of the shape of
the distribution.
 There are two disadvantages, however, to organizing the data
into a frequency distribution:
(1) The exact identity of each value is lost
(2) Difficult to tell how the values within each class are distributed.

 One technique that is used to display quantitative information in

a condensed form is the stem-and-leaf display.

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 Stem-and-Leaf

 Stem-and-leaf display is 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, and the leaf
values are stacked against each other along the horizontal axis.
 Advantage of the stem-and-leaf display over a frequency
distribution - the identity of each observation is not lost.

4-8
 Stem-and-leaf Plot Example

Listed in Table 4–1 is the number of 30-second radio advertising

spots purchased by each of the 45 members of the Greater
Buffalo 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?

4-9
 Stem-and-leaf Plot Example

4-10
 Stem-and-leaf Plot Example

 First, the minimum number of spots

purchased is 88 and the maximum is 156.
 The concentration of the number of spots is
between 110 and 130. There were nine
dealers who purchased between 110 and
119 spots and eight who purchased between
120 and 129 spots.

4-11
 Quartiles, Deciles and Percentiles

 The standard deviation is the most widely used

measure of dispersion.

 Alternative ways of describing spread of data include

determining the location of values that divide a set of
observations into equal parts.

 These measures include quartiles, deciles, and

percentiles.

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 4-13

Quartiles
Divide a set of
observations
into four
equal parts.

Quartiles
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 4-14

Quartiles
Locate the median,
(50th percentile)

Quartiles
(continued)
4-14
 4-15

Quartiles

Locate the median,

(50th percentile)
the first quartile
(25th percentile)

Quartiles
4-15
(continued)
 4-16

Quartiles
Locate the median,
(50th percentile)
first quartile (25th percentile)

and the 3rd quartile

(75th percentile)

Quartiles
4-16
(continued)
 4-17

Quartiles
P
Lp = (n+1)
100
where

P is the desired percentile

Quartiles
4-17
(continued)
 4-18
Stock prices on twelve
consecutive days for a major
publicly traded company

86, 79, 92, 84, 69, 88, 91

83, 96, 78, 82, 85.

4-18
Example 2
 4-19

Using the twelve stock prices, we can find the

median, 25th, and 75th percentiles as follows:

Quartile 3 L75 = (12 + 1) 75 = 9.75th observation

100

50
Median L50 = (12 + 1) = 6.50th observation
100

25 = 3.25th observation
Quartile 1 L25 = (12+1)
100

Example 2 (continued)
 4-20

th
12 96 75 percentile
Q4 11 92 Price at 9.75 observation = 88 + .75(91-88)
10 91 = 90.25
9 88
Q3 8 86
50th percentile: Median
7 85
Price at 6.50 observation = 84+ .5(85-84)
6 84
= 84.50
Q2 5 83
4 82
25 th percentile
3 79
Q1 2 78 Price at 3.25 observation = 79 + .25(82-79)
1 69 = 79.75

Example 2 (continued)
 4-21

The Interquartile This distance will

range is the distance include the middle 50
between the third percent of the
quartile Q3 and the observations.
first quartile Q1.

Interquartile range = Q3 - Q1

Interquartile Range
 4-22

For a set of
observations the third
quartile is 24 and the
first quartile is 10.
What is the quartile
deviation?
The interquartile range is
24 - 10 = 14. Fifty
percent of the observations
will occur between 10 and
24.

Example 3
 Percentile Computation
 To formalize the computational procedure, let Lp refer to the
location of a desired percentile. So if we wanted to find the 33rd
percentile we would use L33 and if we wanted the median, the
50th percentile, then L50.

 The number of observations is n, so if we want to locate the

median, its position is at (n + 1)/2, or we could write this as
(n + 1)(P/100), where P is the desired percentile.

4-23
 Percentiles - Example

Listed below are the commissions earned

last month by a sample of 15 brokers at
Salomon Smith Barney’s Oakland,
California, office.

$2,038 $1,758 $1,721 $1,637

$2,097 $2,047 $2,205 $1,787
$2,287 $1,940 $2,311 $2,054
$2,406 $1,471 $1,460

Locate the median, the first quartile, and

the third quartile for the commissions
earned.

4-24
 Percentiles – Example (cont.)

Step 1: Organize the data from lowest to

largest value

$1,460 $1,471 $1,637 $1,721

$1,758 $1,787 $1,940 $2,038
$2,047 $2,054 $2,097 $2,205
$2,287 $2,311 $2,406

4-25
 Percentiles – Example (cont.)

Step 2: Compute the first and third quartiles.

Locate L25 and L75 using:

25 75
L25  (15  1) 4 L75  (15  1)  12
100 100
Therefore, the first and third quartiles are located at the 4th and 12th
positions,respectively
L25  $1,721
L75  $2,205

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 Boxplot - Example

4-27
 Boxplot Example

Step1: Create an appropriate scale along the horizontal axis.

Step 2: Draw a box that starts at Q1 (15 minutes) and ends at Q3 (22
minutes). Inside the box we place a vertical line to represent the median (18
minutes).
Step 3: Extend horizontal lines from the box out to the minimum value (13
minutes) and the maximum value (30 minutes).

4-28
 Boxplot – Using Minitab

Develop a box plot of the data for the data below from Chapter 2. What can we
conclude about the distribution of the vehicle selling prices?

4-29
 Boxplot – Using Minitab

What can we conclude about the distribution of the vehicle selling prices?

Conclude:
•The median vehicle selling price
is about $23,000,
•About 25 percent of the vehicles
sell for less than $20,000, and
that about 25 percent sell for
more than $26,000.
•About 50 percent of the vehicles
sell for between $20,000 and
$26,000.
•The distribution is positively
skewed because the solid line
above $26,000 is somewhat
longer than the line below
$20,000.
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 4-31

outlier

 A data point that is usually far from the

others. An accepted rule is to classify an
observation as an outlier if it is 1.5 times the
inter quartile range above the third quartile or
below the first quartile.

 Outlier > Q3 + 1.5 (Q3 - Q1 )

 Outlier < Q1 - 1.5 (Q3 - Q1 )

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 Skewness

 In Chapter 3, measures of central location (the

mean, median, and mode) for a set of observations
and measures of data dispersion (e.g. range and the
standard deviation) were introduced
 Another characteristic of a set of data is the shape.
 There are four shapes commonly observed:
– symmetric,
– positively skewed,
– negatively skewed,
– bimodal.

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 Skewness - Formulas for Computing

The coefficient of skewness can range from -3 up to 3.

– A value near -3, indicates considerable negative skewness.
– A value such as 1.63 indicates moderate positive skewness.
– A value of 0, which will occur when the mean and median are
equal, indicates the distribution is symmetrical and that there is no
skewness present.

4-33
 Commonly Observed Shapes

4-34
 Skewness – An Example

 Following are the earnings per share for a sample of

15 software companies for the year 2007. The
earnings per share are arranged from smallest to
largest.

 Compute the mean, median, and standard deviation.

Find the coefficient of skewness using Pearson’s
estimate.
 What is your conclusion regarding the shape of the
distribution?
4-35
 Skewness – An Example Using
Pearson’s Coefficient

Step 1: Compute the Mean

X
X 
$74.26
 $4.95
n 15

Step 2 : Compute the Standard Deviation

s
 X X  
2


($0.09  $4.95) 2  ...  ($16.40  $4.95) 2 )
 $5.22
n 1 15  1

Step 3 : Find the Median

The middle value in the set of data, arranged from smallestto largestis 3.18

Step 3 : Compute the Skewness

3( X  Median ) 3($4.95  $3.18)
sk    1.017
s $5.22

4-36
 Describing Relationship between Two
Variables

 When we study the relationship

between two variables we refer to the
data as bivariate.

 One graphical technique we use to

show the relationship between
variables is called a scatter diagram.

 To draw a scatter diagram we need two

variables. We scale one variable along
the horizontal axis (X-axis) of a graph
and the other variable along the vertical
axis (Y-axis).

4-37
 Describing Relationship between Two
Variables – Scatter Diagram Examples

4-38
 Describing Relationship between Two
Variables – Scatter Diagram Excel Example

In Chapter 2 we presented data

from AutoUSA. In this case the
information concerned the prices
of 80 vehicles sold last month at
the Whitner Autoplex lot in
Raytown, Missouri. The data
shown include the selling price
of the vehicle as well as the age
of the purchaser.

Is there a relationship between the

selling price of a vehicle and the
age of the purchaser?
Would it be reasonable to conclude
that the more expensive vehicles
are purchased by older buyers?
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 Describing Relationship between Two
Variables – Scatter Diagram Excel Example

4-40
 Contingency Tables

 A scatter diagram requires that both of the

variables be at least interval scale.
 What if we wish to study the relationship
between two variables when one or both are
nominal or ordinal scale? In this case we tally
the results in a contingency table.

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 Contingency Tables

A contingency table is a cross-tabulation that

simultaneously summarizes two variables of interest.

Examples:
1. Students at a university are classified by gender and class rank.
2. A product is classified as acceptable or unacceptable and by the
shift (day, afternoon, or night) on which it is manufactured.
3. A voter in a school bond referendum is classified as to party
affiliation (Democrat, Republican, other) and the number of children
that voter has attending school in the district (0, 1, 2, etc.).

4-42
 Contingency Tables – An Example

A manufacturer of preassembled windows produced 50 windows yesterday. This

morning the quality assurance inspector reviewed each window for all quality
aspects. Each was classified as acceptable or unacceptable and by the shift
on which it was produced. Thus we reported two variables on a single item.
The two variables are shift and quality. The results are reported in the
following table.

Using the contingency table able, the quality of the three shifts can be
compared. For example:
1. On the day shift, 3 out of 20 windows or 15 percent are defective.
2. On the afternoon shift, 2 of 15 or 13 percent are defective and
3. On the night shift 1 out of 15 or 7 percent are defective.
4. Overall 12 percent of the windows are defective
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