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Chapter 2 Updated
Chapter 2 Updated
Chapter 2 Updated
Chapter 2
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
GOALS
2-2
Learning Objectives
Qualitative Quantitative
Data Data
Summary Frequency
Table Distribution
Row Is
Major Count Tally:
Category |||| ||||
Accounting 130
|||| ||||
Economics 20
Management 50
Total 200
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Bar Graph
0
Acct. Econ. Mgmt.
Vertical Bars
Zero Point Major for Qualitative
Variables
2-8
Pie Charts
2-9
Visualizing Categorical Data:
The Bar Chart
In a bar chart, a bar shows each category, the length of which
represents the amount, frequency or percentage of values falling into
a category which come from the summary table of the variable.
Banking Preference
Internet 24%
ATM
Banking Preference? %
16% ATM
ATM 16% 24%
2% Automated or live
Automated or live 2%
telephone
telephone
Drive-through service at
Drive-through service at 17%
17% branch
branch
In person at branch
In person at branch 41%
Internet 24% Internet
41%
100% 100%
% in each category
80% 80%
Cumulative %
(line graph)
(bar graph)
60% 60%
40% 40%
20% 20%
0% 0%
In person Internet Drive- ATM Automated
at branch through or live
service at telephone
branch
100
Percent Frequency or %
Used
Also
50
0
Acct. Mgmt. Econ.
Major Vertical Bars
Zero Point for Qualitative
© 2011 Pearson Education, Inc
Variables
Pareto Diagram
17
Summary
Bar graph: The categories (classes) of the qualitative variable are
represented by bars, where the height of each bar is either the class
frequency, class relative frequency, or class percentage.
Pie chart: The categories (classes) of the qualitative variable are
represented by slices of a pie (circle). The size of each slice is proportional
to the class relative frequency.
Pareto diagram: A bar graph with the categories (classes) of the
qualitative variable (i.e., the bars) arranged by height in descending order
from left to right.
100%
Market Share (%)
80%
60%
40%
20%
0%
Firefox Internet Safari Others
Explorer
Browser
© 2011 Pearson Education, Inc
Pie Chart Solution*
Market Share
Firefox,
14%
Safari, 4%
Others,
1%
Internet
Explorer,
81%
100%
Market Share (%)
80%
60%
40%
20%
0%
Internet Firefox Safari Others
Explorer
Browser
© 2011 Pearson Education, Inc
A Contingency Table Helps Organize Two or
More Categorical Variables
• Used to study patterns that may exist between the responses
of two or more categorical variables
• For two variables the tallies for one variable are located in the
rows and the tallies for the second variable are located in the
columns
right.
Large 65 5 70
Amount
335 65 400
Total
Chap 2-24
•Chap 2-24
Contingency Table Based On Percentage of Overall
Total
No
Errors Errors Total •42.50% = 170 / 400
Small 170 20 190 •25.00% = 100 / 400
Amount
•16.25% = 65 / 400
Medium 100 40 140
Amount
No
Errors Errors Total
Large 65 5 70
Amount
Small 42.50% 5.00% 47.50%
Amount
335 65 400
Total
Medium 25.00% 10.00% 35.00%
Amount
•83.75% of sampled invoices have no
Large 16.25% 1.25% 17.50%
errors and 47.50% of sampled Amount
invoices are for small amounts.
83.75% 16.25% 100.0%
Total
26
Contingency Table Based On Percentage of Column
Total
27
2.2
1. Determine range
2. Select number of classes
• Usually between 5 & 15 inclusive
3. Compute class intervals (width)
4. Determine class boundaries (limits)
5. Compute class midpoints
6. Count observations & assign to classes
2-31
Frequency Polygon
A frequency polygon
also shows the shape
of a distribution and is
similar to a histogram.
It consists of line
segments connecting
the points formed by
the intersections of the
class midpoints and the
class frequencies.
2-32
Histogram Versus Frequency Polygon
2-33
Cumulative Frequency Distribution
2-34
Visualizing Numerical Data:
The Polygon
2-36
Time Series Plot
2.3
2.25
2.2
2.15
2.1
2.05
10/16 10/23 10/30 11/6 11/13 11/20 11/27 12/4
Date
© 2011 Pearson Education, Inc
SCATTER PLOTS AND LINES OF BEST FIT
Year 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995
# of
201 593 616 897 654 919 866 684 1133 1234
Tornadoes
•Scatter plots provide a convenient way to determine
•correlation exists between two variables.
whether a ___________
•positive
•A __________ correlation occurs when both variables
increase.
•negative
•A ___________ correlation occurs when one variable
increases and the other variable decreases.