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 Session 6 :
Descriptive Statistics-2

Dr. Siddhartha Kushwaha

ksiddhartha@ibsindia.org
Frequency Distribution
• 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.
Frequency Distribution
 Example: Hudson Auto Repair
Sample of Parts Cost($) for 50 Tune-ups
91 78 93 57 75 52 99 80 97 62
71 69 72 89 66 75 79 75 72 76
104 74 62 68 97 105 77 65 80 109
85 97 88 68 83 68 71 69 67 74
62 82 98 101 79 105 79 69 62 73
Frequency Distribution
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.
Frequency Distribution
• 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.
Frequency Distribution
• 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.
Frequency Distribution
 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.
Frequency Distribution
 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
possible data value assigned to the class.
• The upper class limit identifies the largest
possible data value assigned to the class.
• The appropriate values for the class limits
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.
Frequency Distribution
 Example: Hudson Auto Repair
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
Relative Frequency &
Percent Frequency Distributions

 Example: Hudson Auto Repair

Parts Relative Percent

Cost ($) Frequency Frequency
50-59 .04 4
60-69 .26 2/50 26 .04(100)
70-79 .32 32
80-89 .14 14 Percent
Percent
frequency
frequency isis
90-99 .14 14 the
the relative
relative
100-109 .10 10 frequency
frequency
multiplied
multiplied
Total = 1.00 100 by
by 100.
100.
Relative Frequency &
Percent Frequency Distributions
 Example: Hudson Auto Repair
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.
Exercise
• Consider the following data
14 21 23 21 16
19 22 25 16 16
24 24 25 19 16
19 18 19 21 12
16 17 18 23 25
20 23 16 20 19
24 26 15 22 24
20 22 24 22 20
a. Develop a frequency distribution using classes of 12–14, 15–17, 18–20, 21–23, and 24–26.
b. Develop a relative frequency distribution and a percent frequency distribution using the classes
in part (a).
Cumulative Distributions
Cumulative
Cumulative frequency distribution -- shows
frequency distribution 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 ofof each
each class..
class..

Cumulative
Cumulative relative
relative frequency
frequency distribution
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
frequency distribution
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.
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.
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 + 13 .62 15/50 62 .30(100)
< 89 38 .76 76
< 99 45 .90 90
< 109 50 1.00 100
Ogive
 An ogive is a graph of a cumulative distribution.
 The data values are shown on the horizontal axis.
 Shown on the vertical axis are the:
• cumulative frequencies, or
• cumulative relative frequencies, or
• cumulative percent frequencies
 The frequency (one of the above) of each class is
plotted as a point.
 The plotted points are connected by straight lines.
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.
Ogive with Cumulative Percent Frequencies

 Example: Hudson Auto Repair

100 Tune-up Parts Cost

Cumulative Percent Frequency
80

60 (89.5, 76)

40

20
Parts
Cost ($)
50 60 70 80 90 100 110
Exercise:
Consider the following frequency distribution.
Class Frequency
10–19 10
20–29 14
30–39 17
40–49 7
50–59 2
Construct a cumulative frequency distribution and a cumulative relative
frequency distribution.
Questions?
 Thank you
Siddhartha Kushwaha
ksiddhartha@ibsindia.org