QMB 3200 Lecure 1 PPT 2

Chapter 2
Copyright ©2015 Pearson Education, Inc.

2-1
Chapter 2
Displaying Descriptive Statistics
CHAPTER 2 MAP
2.1 The Role Technology Plays in Statistics
2.2 Displaying Quantitative Data
2.3 Displaying Qualitative Data
2.4 Contingency Tables
2.5 Stem and Leaf Display
2.6 Scatter Plots

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2.1 The Role Technology Plays
in Statistics
Microsoft Excel has built-in options for data

presentation and statistical analysis
You may need to activate Excel’s Analysis Tool

Pak Add-in to see these options

2-3
Statistical Analysis Using Excel 2013
1. Open Excel 2013, then click on the

File tab
2. Click Options shown in the drop
down menu. This will open the Excel
Options dialog box
3. Select Add-Ins in the left margin…
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4. Click on Go at the bottom of

the screen
5. Select the check boxes for

Analysis ToolPak and
Analysis ToolPak - VBA in the
popup menu and click OK

2-5
1. Select the Data

tab. Click on Data
Analysis on the
right side of the
application bar
The Data Analysis

pop-up
menu should
appear in the
spreadsheet

2-6
Installing PHStat
PHStat is an Excel Add-in developed by

Prentice Hall to provide students with
additional features for statistical analysis
• The software will be referred to throughout the
book and is available from the book’s website:
www.pearsonhighered.com/donnelly
• To install PHStat on your Windows PC, follow the
instructions on the book’s website
• Mac users can also find instructions for PHStat on
the book’s website

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2.2 Displaying Quantitative Data
Recall the types of data from Chapter 1:
Types of Data
Qualitative Quantitative
Displaying Displaying
qualitative data quantitative data
is discussed in is discussed in
section 2.3 section 2.2

2-8
Constructing a Frequency Distribution
A frequency distribution shows the number of

data observations that fall into specific
intervals
• Graphically summarize information not readily
observable by merely looking at data in a table

2-9
Example: Number of iPads sold per day

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Discrete vs. Continuous Data
Discrete data are values based on observations
that can be counted and are typically
represented by whole numbers
• represent something that has been counted
• take on whole numbers such as 0, 1, 2, 3
Continuous data are values that can take on any

real numbers, including numbers that contain
decimal points
• usually measured rather than counted
• Examples are weight, time, and distance

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Discrete vs. Continuous Data
Examples of Discrete data
• Number of children per family
• Number of cars listed per insurance policy
• Vacation days per month
Examples of Continuous data

• Time required to read chapter 2
• Thickness of paint applied to a car body
• Voltage of batteries produced in August
Because discrete data can be counted, they have a finite

number of values within an interval, whereas continuous
data have an inifinite number of values available

2-12
Relative Frequency Distributions
Relative frequency distributions display the
proportion of observations of each class relative
to the total number of observations
• shows the fraction of observations in each class
• found by dividing each frequency by the total
number of observations
• the fractions in a relative frequency distribution add
up to 1.00

2-13
Relative Frequency Distributions
Relative Frequency Distributions: display the proportion of observations
of each class relative to the total number of observation
Two iPads were sold on 28% of the days

2-14
Cumulative Relative Frequency
Distributions
A cumulative relative frequency distribution

totals the proportion of observations that are
less than or equal to the class at which you are
looking
• Shows the accumulated proportion as values vary
from low to high
• Example: if the manger of the apple store wanted to
determine the percentage of days that three or
fewer ipads were sold.

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Cumulative Relative Frequency
Distributions
Example:
Three iPads or less were sold on 80% of the business days

2-16
Using a Histogram to Graph a Frequency
Distribution
A histogram is a graph showing the number of

observations in each class of a frequency
distribution
• Excel uses the term “bins” for the classes in the
distribution

2-17
Constructing a Histogram in Excel
1
1. Select the Data 1
tab, and click on
Data Analysis in
the upper right
corner
2. In the pop-up
menu, select
Histogram and
click OK…
2

2-18
Constructing a Histogram in Excel
3. In the Input Range
text box, highlight the
desired data
4. In the Bin Range text
box, highlight the bin
values (create bins if
not already created
before step 1)
3 6
5. For Output options,
select New 4
Worksheet Ply and
Chart Output
6. Click OK 5

2-19
Histograms in Excel
7. Customize the Excel graph to make it more attractive
8. Stretch size to better proportion

9. Eliminate “more” bin
10. Modify the graph and axis labels
11. Remove the redundant “Frequency” legend

2-20
The Shape of Histograms
Symmetric
• the right side is the mirror image
of the left side of the distribution
Still symmetric, but

wider spread
Not symmetric

2-21
Using Grouped Quantitative Data
Ideally, the number of classes in a frequency

distribution should be between 4 and 20
• Some data sets, particularly those with continuous
data, require several values to be grouped together
in a single class
• This grouping prevents having too many classes in
the frequency distribution, which can make it
difficult to detect patterns

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Number of Classes
One method to determine the number of classes in
a frequency distribution is the rule
2k  n
where k = Number of classes
n = Number of data points
• Find the lowest value of k that satisfies the rule
Suppose n = 50
25 = 32 < 50 (k = 5 is too small)
26 = 64 > 50 (k = 6 is a good choice)
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Class Width
There is no one correct answer for the class

width
• The goal is to create a histogram to clearly
and usefully show the pattern in the data
• Often there is more than one acceptable way
to accomplish this

2-25
Class Width
Once k is known, the width of each class can be
found
• The width is the range of numbers to put into each
class
Maximum data value  Minimum data value

Estimated class width 
k
• Round this estimate to a useful whole number that
makes the frequency distribution more readable
• 17.4-.06/6= 2.8 round to 3 (info from table 2.6 pg

31)

2-26
2-27
Class Boundaries
Class boundaries represent the minimum and
maximum values for each class
• Choose class boundaries that are easy to read
 
3 to less than 6 minutes 3.21 to less than 6.21 minutes
6 to less than 9 minutes vs. 6.21 to less than 9.21 minutes
9 to less than 12 minutes 9.21 to less than 12.21 minutes

2-28
Class Frequencies
Find class frequencies by counting and recording
the number of observations in each class
• this is easier when the data are sorted
Example:

2-29
Rules for Classes for Grouped Data
1. Equal-size classes. All classes in the frequency
distribution must be of equal width
2. Mutually exclusive classes. Class boundaries cannot
overlap
3. Include all data values. Make sure all data values are
accounted for in the total row of the frequency distribution
4. Avoid empty classes. It is undesirable for a histogram to
display a class so narrow that there are no observations in it
5. Avoid open-ended classes (if possible). These
violate the first rule of equal class sizes

2-30
Constructing a Histogram with
Grouped Quantitative Data
For grouped data, the bins in Excel are the
upper boundary for each class
For continuous data, remove the gaps
between the bars in the histogram:
1. Right-click on any histogram bar to get a pop-
up menu
2. Left-click on Format Data Series
3. In the dialog box, move the Gap Width slide all
the way to the left
4. Close the Format Data Series dialog box

2-31
Constructing a Histogram with
Grouped Quantitative Data
Additional formatting issues:
• Use a descriptive title for the graph
• Use descriptive labels for the axes
• Remove the redundant “Frequency” legend
• Remove gaps between bars

2-32
The Consequences of
Too Few or Too Many Classes
Wide classes results in few class intervals
• Can obscure important patterns
• Gives a “blocky” distribution graph
• Summarizes the data too much
• Tells us little about the true
distribution shape
Too many narrow classes in a histogram also

has consequences
• Results in a “jagged” histogram
• Some classes may be empty
• Does not summarize the data enough

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Are They Discrete or Continuous Data?
Some data are technically discrete (counted,

not measured) but are displayed in a
continuous format
Examples
• Age
• Income
• Other discrete data sets containing a wide range
of values

2-34
The Polygon
A percentage polygon graphs the midpoint of

each class as a line rather than a column
• The height of each midpoint represents the
relative frequency of the corresponding class
• Used to compare the shape of two or more
distributions on one graph
The cumulative percentage polygon, or ogive,
is a line graph that plots the cumulative
relative frequency distribution

2-35
The Polygon
Percentage polygons and cumulative percentage
polygons can be created using PHStat

2-36
The Polygon

2-37
2.3 Displaying Qualitative Data
Qualitative data are values that are categorical

• Can be nominal or ordinal measurement level
• Describe a characteristic, such as gender or level
of education
Frequency distributions help display

qualitative data by indicating the number of
occurrences of various categories
• Can use Excel’s COUNTIF function to count the
number of values matching a category label

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Displaying Qualitative Data
Figure 2.15 A-B | Excel’s COUNTIF Function
Excel’s COUNTIF
Function Results

2-39
Bar Charts
Bar charts are a good tool for displaying
qualitative data that have been organized in
categories
Can be arranged
in a vertical or
horizontal
orientation

2-40
Bar Charts
Horizontal bar chart Vertical bar chart
Can display multiple series with clustered bar charts or stacked bar
charts:

2-41
Displaying Qualitative Data: Example

2-42
Pareto Charts
Pareto charts are bar charts that show the

frequency of the categories that cause quality
control problems
Show quality problem categories in decreasing
order
• The most problematic categories are shown first
Pareto charts also plot the cumulative relative
frequency as a line on the chart known as an
ogive

2-43
Pareto Charts
Follow the steps shown

in the text, pages 49-50,
to create a Pareto chart
and ogive using Excel
Note: The categories

are arranged from
most frequent to least
frequent

2-44
Pie Charts
Pie charts are another excellent tool for
comparing proportions for categorical data
Each segment of the pie represents the relative
frequency of one category
• All categories in the data set must be included in
the pie
• Use a pie chart to compare the relative sizes of all
possible categories
• Bar charts are more useful when you want to
highlight the actual data values and when the
classes combined don’t form a whole

2-45
Pie Charts
|
Figure 2.19A Constructing a Pie Chart in Excel

2-46
Pie Charts
Figure 2.19B | Constructing a Pie Chart in Excel
(continued)

2-47
Pie Charts
Example:

2-48
2.4 Contingency Tables
Contingency tables provide a format to

display observations that have more than one
value associated with them
• Use rows and columns for separate variables to
summarize the data efficiently

2-49
Contingency Tables
Contingency
Table
7 females out of 20 customers paid using

credit, 7/20 = 0.35
Relative
Contingency
Table

2-50
Constructing a Contingency Table in Excel
1. Click on any cell within

your data
2. Choose the Insert tab
3. Click on the Pivot Table
icon
4. Click on Pivot Table in
the drop-down menu
5. A Create Pivot Table
dialog box will appear.
Click OK…

2-51
6. A new worksheet
will be created for
your pivot table
From the Pivot Table Field
List,
a & b. Drag the desired
variable names down
into the Column or Row c
b
Labels boxes, as
a
desired
c. Drag the variable
name to be summarized
down into the Values
box

2-52
Resulting pivot table:
|
Figure 2.21C Creating a Pivot Table in Excel (Final Result)

2-53
2.5 Stem and Leaf Display
A stem and leaf display splits the data values
into stems (the larger place values) and leaves
(the smaller place value)
By listing all of the leaves to the right of each
stem, we can graphically describe how the data
are distributed
• All the original data points are visible on the display
• Easy to construct by hand
• Provides a histogram-like view of the distribution

2-54
Stem and Leaf Display
For this example, use the 10’s digit as the stem
Use the 1’s digit as the leaf
7|8
8|0

2-55
1. Sort the data from lowest to highest
2. Determine the unique stem values
7, 8, 9 are the different stem values in this example
3. List the stems in a vertical column and then add the leaf
values to the right of the appropriate stem, in ascending
order
7|8 8 9 9 9
8|0 0 0 0 1 1 2 3 3 4 4 4 5 6 7 8
9|0 2 5
2-56
To get more detail the stems can be split in half
7(5) | 8 8 9 9 9
8(0) | 0 0 0 0 1 1 2 3 3 4 4 4
8(5) | 5 6 7 8
9(0) | 0 2
9(5) | 5
• The stem labeled 7(5) stores all the scores between 75 and 79
• The stem 8(0) stores all the scores between 80 and 84

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2.6 Scatter Plots
Scatter plots provide a picture of the

relationship between two data points that are
paired together
The dependent variable, which is placed on the
vertical axis of the scatter plot, is influenced by
changes in the independent variable, which is
placed on the horizontal axis

2-58
Scatter Plots
Dependent
variable
(y-axis)
Independent variable (x-axis)

2-59
Scatter Plots
Figure 2.25A |
Constructing a
Scatter Plot in
Excel

2-60
Line Charts
A line chart is a scatter plot in which the data
points in the scatter plot are connected with line
segments
• Often used with time
series data
When graphing a time
series the convention is to
place the time data on the
horizontal axis

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Line Charts
Figure 2.26A |
Constructing a
Line Chart in
Excel

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Chapter 2

Copyright ©2015 Pearson Education, Inc.

2.2 Displaying Quantitative Data

2.3 Displaying Qualitative Data

2.4 Contingency Tables

2.5 Stem and Leaf Display

2.6 Scatter Plots

Copyright ©2015 Pearson Education, Inc.

Microsoft Excel has built-in options for data

You may need to activate Excel’s Analysis Tool

Copyright ©2015 Pearson Education, Inc.

1. Open Excel 2013, then click on the

4. Click on Go at the bottom of

5. Select the check boxes for

Copyright ©2015 Pearson Education, Inc.

1. Select the Data

The Data Analysis

Copyright ©2015 Pearson Education, Inc.

PHStat is an Excel Add-in developed by

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

A frequency distribution shows the number of

Copyright ©2015 Pearson Education, Inc.

Example: Number of iPads sold per day

Copyright ©2015 Pearson Education, Inc.

Continuous data are values that can take on any

Copyright ©2015 Pearson Education, Inc.

Examples of Continuous data

Because discrete data can be counted, they have a finite

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Two iPads were sold on 28% of the days

Copyright ©2015 Pearson Education, Inc.

A cumulative relative frequency distribution

Copyright ©2015 Pearson Education, Inc.

Three iPads or less were sold on 80% of the business days

Copyright ©2015 Pearson Education, Inc.

A histogram is a graph showing the number of

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

8. Stretch size to better proportion

Copyright ©2015 Pearson Education, Inc.

Still symmetric, but

Copyright ©2015 Pearson Education, Inc.

Ideally, the number of classes in a frequency

Copyright ©2015 Pearson Education, Inc.

There is no one correct answer for the class

Copyright ©2015 Pearson Education, Inc.

Maximum data value  Minimum data value

• 17.4-.06/6= 2.8 round to 3 (info from table 2.6 pg

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Copyright ©2015 Pearson Education, Inc.

Too many narrow classes in a histogram also