2.tables and Graphs

Statistics for Business
and Economics
Anderson
Williams
Sweeney
Slides by
John Loucks
St. Edwards University
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
1
or duplicated, or posted to a publicly accessible website, in whole or in part.
Descriptive Statistics:
Tabular and Graphical Presentations
1. Summarizing Categorical
Data
2. Summarizing Quantitative
Data
3. Exploratory Data Analysis: Stem-and-Leaf
Display
4. Cross tabulation and Scatter Diagram
Categorical
Categorical data
data use
use labels
labels or
or names
names
to
to identify
identify categories
categories of
of like
like items.
items.
Quantitative
Quantitative data
data are
are numerical
numerical values
values
that
that indicate
indicate how
how much
much or
or how
how many.
many.
2
1. Summarizing Categorical Data
1.1 Frequency Distribution

1.2 Relative Frequency
Distribution
1.3
Percent Frequency
Distribution
1.4 Bar Chart
1.5 Pie Chart
3

A
A frequency
frequency distribution
distribution is
is aa tabular
tabular summary
summary of
of
data
data showing
showing the
the frequency
frequency (or
(or number)
number) of
of items
items
in
in each
each of
of several
several non-overlapping
non-overlapping classes.
classes.
The
The objective
objective is
is to
to provide
provide insights
insights about
about the
the data
data
that
that cannot
cannot be
be quickly
quickly obtained
obtained by
by looking
looking only
only at
at
the
the original
original data.
data.
4
Frequency Distribution
Example: Marada Inn
Guests staying at Marada Inn were asked to rate

the
quality of their accommodations as being
excellent,
above average, average, below average, or
Above Average
Below
Average
poor.Average
The
Average
Above Average
Above
Average
ratings
provided by
a sample
of 20Above
guests
are:
Above Average
Average
Above Average
Average
Above Average
Below Average
Poor
Excellent
Above Average
Average
Below Average
Poor
Above Average
Average
5
Example: Marada Inn

Rating
Frequency
2
Poor
3
Below Average
5
Average
9
Above Average
1
Excellent
Total
20
6
1.2 Relative Frequency Distribution

The
The relative
relative frequency
frequency of
of aa class
class is
is the
the fraction
fraction or
or
proportion
proportion of
of the
the total
total number
number of
of data
data items
items
belonging
belonging to
to the
the class.
class.
A
A relative
relative frequency
distribution is
is aa tabular
tabular
summary
summary of
of aa set
set of
of data
data showing
showing the
the relative
relative
frequency
frequency for
for each
each class.
class.
7
1.3 Percent Frequency Distribution

The
The percent
percent frequency
frequency of
of aa class
class is
is the
the relative
relative
frequency
frequency multiplied
multiplied by
by 100.
100.
A
A percent
percent frequency
distribution is
is aa tabular
tabular
summary
summary of
of aa set
set of
of data
data showing
showing the
the percent
percent
frequency
frequency for
for each
each class.
class.
8
Relative Frequency and

Percent Frequency Distributions
Example: Marada Inn

Relative
Percent
Rating
Frequency Frequency
.10
10
Poor
15
Below Average .15
.25
25 .10(100) =
Average
10
.45
45
Above Average
.05
5
Excellent
Total
1.00
100
1/20 = .05
9
1.4 Bar Chart

A bar chart is a graphical device for depicting
qualitative data.
On one axis (usually the horizontal axis), we specify
the labels that are used for each of the classes.
A frequency, relative frequency, or percent frequency
scale can be used for the other axis (usually the
vertical axis).
Using a bar of fixed width drawn above each class
label, we extend the height appropriately.
The bars are separated to emphasize the fact that each
class is a separate category.
10
Bar Chart
Frequency
10
9
Marada Inn Quality Ratings
8
7
6
5
4
3
2
1
Poor
Below Average Above Excellent

Average
Average
Rating
11
Pareto Diagram
In quality control, bar charts are used to identify the
most important causes of problems.
When the bars are arranged in descending order of
height from left to right (with the most frequently
occurring cause appearing first) the bar chart is
called a Pareto diagram.
This diagram is named for its founder, Vilfredo
Pareto, an Italian economist.
12
1.5 Pie Chart

The pie chart is a commonly used graphical device
for presenting relative frequency and percent
frequency distributions for categorical data.
First draw a circle; then use the relative frequencies

to subdivide the circle into sectors that correspond to
the relative frequency for each class.
Since there are 360 degrees in a circle, a class with a
relative frequency of .25 would consume .25(360) = 90
degrees of the circle.
13
Pie Chart
Marada Inn Quality
Ratings
Excellent
5%
Above
Average
45%
Poor
10%
Below
Average
15%
Average
25%
14
Example: Marada Inn
Insights Gained from the Preceding Pie Chart

One-half of the customers surveyed gave Marada
a quality rating of above average or excellent
(looking at the left side of the pie). This might
please the manager.
For each customer who gave an excellent rating,
there were two customers who gave a poor
rating (looking at the top of the pie). This should
displease the manager.
15
2. Summarizing Quantitative Data

2.2 Relative Frequency and
Percent Frequency
Distributions
2.3 Dot Plot
2.4 Histogram
2.5 Cumulative Distributions
2.6 Ogive
16
Example: Hudson Auto Repair

The manager of Hudson Auto would like to
gain a
better understanding of the cost of parts used in
the
engine tune-ups performed in the shop. She
examines
50 customer invoices for tune-ups. The costs of
parts,
rounded to the nearest dollar, are listed on the
next
slide.
17
91
71
104
85
62
Sample of Parts Cost($) for 50 Tune78 ups

93 57 75 52 99 80 97
69
74
97
82
72
62
88
98
89
68
68
101
66
97
83
79
75
105
68
105
79
77
71
79
75
65
69
69
72
80
67
62
62
76
109
74
73
18
The three steps necessary to define the classes for a
frequency distribution with quantitative data are:
1. Determine the number of non-overlapping classes.
2. Determine the width of each class.
3. Determine the class limits.
19
Guidelines for Determining the Number of

Classes
Use between 5 and 20 classes.
Data sets with a larger number of elements
usually require a larger number of classes.
Smaller data sets usually require fewer classes.
The
The goal
goal is
is to
to use
use enough
enough classes
classes to
to show
show the
the
variation
variation in
in the
the data,
data, but
but not
not so
so many
many classes
classes
that
that some
some contain
contain only
only aa few
few data
data items.
items.
20
Guidelines for Determining the Width of Each

Class
Use classes of equal width.
Approximate Class Width =
Largest Data Value Smallest Data Value

Number of Classes
Making
Making the
the classes
classes the
the same
same
width
width reduces
reduces the
the chance
chance of
of
inappropriate
inappropriate interpretations.
interpretations.
Class
80-100
75-79
65-69
60-65
70-74
50-54
45-49
55-59
40-44
0-39
Grade Frequency
13
A
13
A11
B
15
B14
B+
8
C
6
C3
C+
2
D
F
0
21
Note on Number of Classes and Class Width
In practice, the number of classes and the
appropriate class width are determined by trial
and error.
Once a possible number of classes is chosen, the
appropriate class width is found.
The process can be repeated for a different

number of classes.
Ultimately, the analyst uses judgment to
determine the combination of the number of
classes and class width that provides the best
frequency distribution for summarizing the data.
22
Guidelines for Determining the Class Limits
Class limits must be chosen so that each data
item belongs to one and only one class.
The lower class limit identifies the smallest < 59
possible data value assigned to the class. < 69
The upper class limit identifies the largest < 79

possible data value assigned to the class.< 89
< 99
limits < 109
The appropriate values for the class

depend on the level of accuracy of the data.
An
An open-end
open-end class
class requires
requires only
only aa
lower
lower class
class limit
limit or
or an
an upper
upper class
class limit.
limit.
23
If we choose six classes:
Approximate Class Width = (109 - 52)/6 = 9.5 10
Parts Cost ($) Frequency

50-59
2
60-69
13
70-79
16
80-89
7
90-99
7
100-109
5
Total
50
24
2.2 Relative Frequency and


Parts
Relative
Percent
Cost ($) Frequency Frequency
50-59
.04
4
60-69
.26 2/50 26
.
70-79
.32
32 04(100
Percent
)Percent
80-89
.14
14
frequency
frequency is
is
90-99
.14
14
the
the relative
relative
100-109
.10
10
frequency
frequency
multiplied
multiplied
Total 1.00
100
by
by 100.
100.
25
Relative Frequency and


Insights Gained from the % Frequency
Distribution:
Only
4% of the parts costs are in the $50-59 class.
30% of the parts costs are under $70.
The greatest percentage (32% or almost one-third)

of the parts costs are in the $70-79 class.
10% of the parts costs are $100 or more.
26
2.3 Dot Plot
One of the simplest graphical summaries of

data is a dot plot.
A horizontal axis shows the range of data
values.
Then each data value is represented by a dot
placed above the axis.
27
Dot Plot

Tune-up Parts Cost
50
60
70
80
90
100
Cost ($)
28
110
2.4 Histogram
Another common graphical presentation of
quantitative data is a histogram.
The variable of interest is placed on the horizontal
axis.
A rectangle is drawn above each class interval with
its height corresponding to the intervals frequency,
relative frequency, or percent frequency.
Unlike a bar graph, a histogram has no natural
separation between rectangles of adjacent classes.
29
Histogram

18
Tune-up Parts Cost
16
Frequency
14
12
10
8
6
4
2
Parts
Cost ($)
5059 6069 7079 8089 9099 100-110
30
Histograms Showing Skewness
Symmetric
Left tail is the mirror image of the right tail
Examples: heights and weights of people
Relative Frequency
.35
.30
.25
.20
.15
.10
.05
0
31
Moderately Skewed Left

A longer tail to the left
Example: exam scores
Relative Frequency
.35
.30
.25
.20
.15
.10
.05
0
32
Moderately Right Skewed

A Longer tail to the right
Example: housing values
Relative Frequency
.35
.30
.25
.20
.15
.10
.05
0
33
Highly Skewed Right

A very long tail to the right
Example: executive salaries
Relative Frequency
.35
.30
.25
.20
.15
.10
.05
0
34
2.5 Cumulative Distributions

Cumulative
Cumulative frequency
distribution shows
shows the
the
number
number of
of items
items with
with values
values less
less than
than or
or equal
equal to
to the
the
upper
upper limit
limit of
of each
each class..
class..
Cumulative
Cumulative relative
relative frequency
distribution shows
shows
the
the proportion
proportion of
of items
items with
with values
values less
less than
than or
or
equal
equal to
to the
the upper
upper limit
limit of
of each
each class.
class.
Cumulative
Cumulative percent
percent frequency
distribution shows
shows
the
the percentage
percentage of
of items
items with
with values
values less
less than
than or
or
equal
equal to
to the
the upper
upper limit
limit of
of each
each class.
class.
35
Cumulative Distributions
The last entry in a cumulative frequency distribution
always equals the total number of observations.
The last entry in a cumulative relative frequency
distribution always equals 1.00.
The last entry in a cumulative percent frequency
distribution always equals 100.
36
Cumulative Distributions
Hudson Auto Repair

Cumulative Cumulative
Cumulative Relative
Percent
Cost ($) Frequency Frequency Frequency
< 59
2
.04
4
< 69
15
.30
30
< 79
31 2 +
.62 15/50 62
.
< 89
38
.76
13
76 30(100)
< 99
45
.90
90
< 109
50
1.00
100
37
2.6 Ogive
An ogive is a graph of a cumulative

distribution.
The data values are shown on the horizontal
axis.
Shown on the
cumulative
cumulative
cumulative
vertical axis are the:

frequencies, or
relative frequencies, or
percent frequencies
The frequency (one of the above) of each class

is plotted as a point.
The plotted points are connected by straight

lines.
38
Ogive
Hudson Auto Repair

Because the class limits for the parts-cost
data are 50-59, 60-69, and so on, there
appear to be one-unit gaps from 59 to 60,
69 to 70, and so on.
These gaps are eliminated by plotting points
halfway between the class limits.
Thus, 59.5 is used for the 50-59 class, 69.5

is used for the 60-69 class, and so on.
39
Ogive with Cumulative Percent

Frequencies
Cumulative Percent Frequency
100
Tune-up Parts Cost
80
60
(89.5,
76)
40
20
50
60
70
80
90
100
Parts
Cost ($)
110
40
3 Exploratory Data Analysis

The techniques of exploratory data analysis consist of
simple arithmetic and easy-to-draw pictures that can
be used to summarize data quickly.
One such technique is the stem-and-leaf display.
41
3.1 Stem-and-Leaf Display

A stem-and-leaf display shows both the rank order
and shape of the distribution of the data.
It is similar to a histogram on its side, but it has the
advantage of showing the actual data values.
The first digits of each data item are arranged to the
left of a vertical line.
To the right of the vertical line we record the last
digit for each item in rank order.
Each line in the display is referred to as a stem.
Each digit on a stem is a leaf.
42

The manager of Hudson Auto would like to
gain a
better understanding of the cost of parts used in
the
engine tune-ups performed in the shop. She
examines
50 customer invoices for tune-ups. The costs of
parts,
rounded to the nearest dollar, are listed on the
next
slide.
43
Stem-and-Leaf Display
Sample
91 78 ups
93
71 69 72
104 74 62
85 97 88
62 82 98
of Parts Cost ($) for

57 75 52 99
89 66 75 79
68 97 105 77
68 83 68 71
101 79 105 79
50 Tune80 97
75 72
65 80
69 67
69 62
62
76
109
74
73
44
5 2 7
6 2 2 2 2 5 6 7 8 8 8 9 9 9
17 1 2 2 3 4 4 5 5 5 6 7 8 9 9 9
8 0 0 2 3 5 8 9
9 1 3 7 7 7 8 9
10 1 4 5 5 9
a stem
a leaf
45
Stretched Stem-and-Leaf Display

If we believe the original stem-and-leaf display has
condensed the data too much, we can stretch the
display vertically by using two stems for each
leading digit(s).
Whenever a stem value is stated twice, the first value
corresponds to leaf values of 0 4, and the second
value corresponds to leaf values of 5 9.
46
Stretched Stem-and-Leaf Display

5 2
5 7
6 2 2 2 2
65 6 7 8 8 8 9 9 9
71 1 2 2 3 4 4
75 5 5 6 7 8 9 9 9
8 0 0 2 3
8 5 8 9
9 1 3
9 7 7 7 8 9
10 1 4
10 5 5 9
47
Leaf Units
A single digit is used to define each leaf.
In the preceding example, the leaf unit was 1.

Leaf units may be 100, 10, 1, 0.1, and so on.
Where the leaf unit is not shown, it is assumed

to equal 1.
The leaf unit indicates how to multiply the stemand-leaf numbers in order to approximate the
original data.
48
Example: Leaf Unit = 0.1

If we have data with values such as
8.6
8.6
11.7
11.7 9.4
9.4
9.1
9.1
10.2
10.2 11.0
11.0 8.8
8.8
a stem-and-leaf display of these data will be

Leaf Unit
8 6
9 1
10 2
11 0
= 0.1
8
4
7
49
Example: Leaf Unit = 10

If we have data with values such as
1806
1806 1717
1717 1974
1974 1791
1791 1682
1682 1910
1910 1838
1838
a stem-and-leaf display of these data will be
Leaf Unit = 10
16 8
The 82 in 1682
17 1 9
is rounded down
to 80 and is
18 0 3
represented as an
19 1 7
8.
50
Quiz
Below you are given the examination scores of 20 students.
a.
b.
c.
d.
e.
f.
G
h.
Construct a frequency distribution for this data.

Construct a cumulative frequency distribution.
Construct a relative frequency distribution.
Construct a cumulative relative frequency distribution.
Draw a histogram.
Plot an Ogive based on cumulative relative frequencies.
Present the dot plot of the data.
Display the stem and leaf to represent the data.
52
63
92
90
99
72
58
75
92
76
65
74
86
95
79
56
84
88
80
99
51
4. Crosstabulations and Scatter Diagrams

Thus far we have focused on methods that are used
to summarize the data for one variable at a time.
Often a manager is interested in tabular and
graphical methods that will help understand the
relationship between two variables.
Crosstabulation and a scatter diagram are two
methods for summarizing the data for two variables
simultaneously.
52
4.1 Crosstabulation
A crosstabulation is a tabular summary of data for
two variables.
Crosstabulation can be used when:

one variable is qualitative and the other is
quantitative,
both variables are qualitative, or
both variables are quantitative.
The left and top margin labels define the classes for
the two variables.
53
Crosstabulation
Example: Finger Lakes Homes
The number of Finger Lakes homes sold for
each
style andquantitative
price for the past two years
is shown
categorical
below. variable
variable
Home Style
Price
Log
Split A-Frame Total
Range Colonial
< $200,00018
> $200,00012
Total
30
6
14
20
19
16
35
12
3
15
55
45
100
54
Crosstabulation
Insights Gained from Preceding Crosstabulation
The greatest number of homes (19) in the sample

are a split-level style and priced at less than
$200,000.
Only three homes in the sample are an A-Frame

style and priced at $200,000 or more.
55
Crosstabulation
Frequency
distribution
for the
price range
variable
Price
Range Colonial
< $200,000 18
> $200,000 12
Total
30
Home Style
Log
Split A-Frame Total
6
14
20
Frequency distribution
for
the home style variable
19
16
35
12
3
15
55
45
100
56
Crosstabulation: Row or Column

Percentages
Converting the entries in the table into row
percentages or column percentages can
provide additional insight about the
relationship between the two variables.
57
Crosstabulation: Row Percentages

Price
Range Colonial
< $200,000
32.73
26.67
> $200,000
Home Style
Log
Split A-Frame Total
10.91 34.55
31.11 35.56
21.82
6.67
100
100
Note: row totals are actually 100.01 due to rounding.
(Colonial and > $200K)/(All > $200K) x 100 = (12/45) x 100
58
Crosstabulation: Column Percentages

Price
Range Colonial
< $200,000
60.00
40.00
> $200,000
Total
100
Home Style
Log
Split A-Frame
30.00 54.29
70.00 45.71
100
100
80.00
20.00
100
(Colonial and > $200K)/(All Colonial) x 100 = (12/30) x 100
59
4.2 Scatter Diagram and Trendline

A scatter diagram is a graphical presentation of the
relationship between two quantitative variables.
One variable is shown on the horizontal axis and
the other variable is shown on the vertical axis.
The general pattern of the plotted points suggests
the overall relationship between the variables.
A trendline provides an approximation of the
relationship.
60
Scatter Diagram
A Positive Relationship
x
61
Scatter Diagram
A Negative Relationship
x
62
Scatter Diagram
No Apparent Relationship
x
63
Scatter Diagram
Example: Panthers Football Team
The Panthers football team is interested in
investigating the relationship, if any, between
interceptions made and points scored.
x = Number of y = Number of
Interceptions
Points Scored
1
3
2
1
3
14
24
18
17
30
64
Scatter Diagram
Number of Points Scored
y
35
30
25
20
15
10
5
0
x
0
Number of Interceptions
65
Example: Panthers Football Team
Insights Gained from the Preceding Scatter

Diagram
The
scatter diagram indicates a positive relationship
between the number of interceptions and the
number of points scored.
Higher points scored are associated with a higher

number of interceptions.
The relationship is not perfect; all plotted points in

the scatter diagram are not on a straight line.
66
Scatter Diagram and Trendline

Scatter Diagram for the Panthers
35
Number of
Points Scored.
30
25
20
15
10
5
0
0
1
2
3
Number of Interceptions
67
Tabular and Graphical Methods

Data
Categorical Data
Tabular
Methods
Graphical
Methods
Frequency
Bar Chart
Pie Chart
Distribution
Rel. Freq. Dist.
Percent Freq.
Distribution
Crosstabulation
Quantitative Data
Tabular
Methods
Frequency
Distribution
Rel. Freq. Dist.

% Freq. Dist.
Cum. Freq. Dist.
Cum. Rel. Freq.
Distribution
Cum. % Freq.
Distribution
Crosstabulation
Graphical
Methods
Dot Plot
Histogram
Ogive
Stem-andLeaf Display
Scatter
Diagram
68

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Statistics for Business

1. Summarizing Categorical Data

1.1 Frequency Distribution

1.1 Frequency Distribution

Example: Marada Inn

Guests staying at Marada Inn were asked to rate

Example: Marada Inn

1.2 Relative Frequency Distribution

1.3 Percent Frequency Distribution

Relative Frequency and

Example: Marada Inn

1.4 Bar Chart

Marada Inn Quality Ratings

Below Average Above Excellent

1.5 Pie Chart

First draw a circle; then use the relative frequencies

Example: Marada Inn

Insights Gained from the Preceding Pie Chart

2. Summarizing Quantitative Data

2.1 Frequency Distribution

2.1 Frequency Distribution

Example: Hudson Auto Repair

Example: Hudson Auto Repair

Sample of Parts Cost($) for 50 Tune78 ups

Guidelines for Determining the Number of

Guidelines for Determining the Width of Each

Approximate Class Width =

Largest Data Value Smallest Data Value

The process can be repeated for a different

The upper class limit identifies the largest < 79

The appropriate values for the class

Parts Cost ($) Frequency

2.2 Relative Frequency and

Example: Hudson Auto Repair

Relative Frequency and

Example: Hudson Auto Repair

30% of the parts costs are under $70.

The greatest percentage (32% or almost one-third)

10% of the parts costs are $100 or more.

2.3 Dot Plot

One of the simplest graphical summaries of

Example: Hudson Auto Repair

Example: Hudson Auto Repair

Tune-up Parts Cost

Histograms Showing Skewness

Histograms Showing Skewness

Moderately Skewed Left

Histograms Showing Skewness

Moderately Right Skewed

Histograms Showing Skewness

Highly Skewed Right

2.5 Cumulative Distributions

Hudson Auto Repair

An ogive is a graph of a cumulative

vertical axis are the:

The frequency (one of the above) of each class

The plotted points are connected by straight

Hudson Auto Repair