3 Data Summary and Interpretation

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Data summary and interpretation

(Example E1)
X Y
(Avg no of hours (Annual salary
spent in office) in INR million)
_________________ ___________________
10.00 23
8.00 19
13.00 29
9.00 21
11.00 25
14.00 31
6.00 15
4.00 11
12.00 27
7.00 17
5.00 13

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How is Y linked to X?

• Y = 2X +3

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Data summary and interpretation
(Example E2)
X Y
(Avg no of hours (Annual salary
spent in office) in INR million)
_________________ ___________________
10.00 23
8.00 18
13.00 30
9.00 22
11.00 24
14.00 32
6.00 13
4.00 10
12.00 28
7.00 20
5.00 10

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How is Y linked to X?

• Y = 2X +3 ?

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Data summary and interpretation
(Example: Company 1: Reality?)
X Y
(Avg no of hours (Annual salary
spent in office) in INR million)
_________________ ___________________
10.00 8.04
8.00 6.95
13.00 7.58
9.00 8.81
11.00 8.33
14.00 9.96
6.00 7.24
4.00 4.26
12.00 10.84
7.00 4.82
5.00 5.68

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How do we summarize and interpret the data?
(Company 1)

• Number of data point (n) = 11


• Mean of X = 9.0
• Mean of Y = 7.5
• Y = mX + c [Find m and c by least square curve fitting]
– Slope (m) = 0.5
– Intercept (c)= 3

• Correlation coefficient ρxy= 0.816


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How do we mentally perceive Y versus x
relationship?

Y
Y=0.5x + 3

(0,3)

x
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The reality when Y is plotted against x
(perfectly in tune with the mental model!)

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Company 2: Summary of hours vs salary data
(happens to be same as that of company 1)

• Number of data point (n) = 11


• Mean of X = 9.0
• Mean of Y = 7.5
• Y = mX + c [Find m and c by least square curve fitting]
– Slope (m) = 0.5
– Intercept (c)= 3

• Correlation coefficient ρxy= 0.816


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How do we mentally perceive Y versus x
relationship for Company 2? (same as company 1)

Y
Y=0.5x + 3

(0,3)

x
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Wish to see company 2 raw data?

X Y
(Avg no of hours) (Annual salary)
_________________ ___________________
10.00 9.14
8.00 8.14
13.00 8.74
9.00 8.77
11.00 9.26
14.00 8.10
6.00 6.13
4.00 3.10
12.00 9.13
7.00 7.26
5.00 4.74

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Raw data for company 3 and 4
(identical summary! same mental picture?)

COMPANY 3 COMPANY 4
X Y X Y
10.00 7.46 8.00 6.58
8.00 6.77 8.00 5.76
13.00 12.74 8.00 7.71
9.00 7.11 8.00 8.84
11.00 7.81 8.00 8.47
14.00 8.84 8.00 7.04
6.00 6.08 8.00 5.25
4.00 5.39 19.00 12.50
12.00 8.15 8.00 5.56
7.00 6.42 8.00 7.91
5.00 5.73 8.00 6.89

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The reality!!!
(What went wrong? What could be done to avoid the
misinterpretation?)

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Issues and Solution?
• Can we always visualize data?
– Dimensionality issue!
– How to find optimum dimension?

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