Hapter: Tabular and Graphical Methods

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Learning objectives
2.1 Summarise qualitative data by forming frequency
distributions.
CHAPTER 2 2.2 Construct and interpret pie charts and bar charts.
2.3 Summarise quantitative data by forming
frequency distributions.
Tabular and graphical 2.4 Construct and interpret histograms, polygons and
ogives.
methods 2.5 Construct and interpret a stem-and-leaf diagram.
2.6 Construct and interpret a scatterplot.
Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd Copyright © 2016 McGraw-Hill Education (Australia) Pty Ltd
Jaggia, Essentials of Business Statistics, 1e 2-1 Jaggia, Essentials of Business Statistics, 1e 2-2
Updated by: Azizur Rahman Updated by: Azizur Rahman
1 2
House prices in south-west Victoria House prices in south-west Victoria

• Jason Thwaites, a local real estate agent, gathers
recent house sales data for a client from Jason needs to use the sample information to:
Warrnambool, Victoria.
• The table below shows the sale price (in $1,000s) for 1. Summarise the range of house prices
36 family homes. 2. Comment on where house prices tend to cluster
349 435 525 315 349 399.9
3. Calculate percentages to compare house prices.
229 335 299 331.1 331.1 480
330 299.9 339 239 289.9 375
399.9 330 629 315 695 209
595 355 355 519 339.9 385
329 520 595 449.9 499.9 399.9
continued
3 4
Summarising qualitative data LO 2.1 Summarising qualitative data

LO 2.1 Summarise qualitative data by forming frequency • Categories: Cloudy, Rainy or Sunny.
distributions.
• For each category’s count, tally the days that fall
• A frequency distribution for qualitative data groups in that category.
data into categories, and records how many
• Calculate frequency by each category’s tally.
observations fall into each category.
– Weather conditions in south-west Victoria during last February Weather Tally Frequency
Cloudy | 1
|||| |||| ||||
Rainy 20
||||
Sunny |||| || 7
Total = 28 days
continued continued
5 6
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LO 2.1 Summarising qualitative data Visualising frequency distributions for

qualitative data
• Express relative frequencies in terms of
LO 2.2 Construct and interpret pie charts and bar charts.
proportion.
• A pie chart is a segmented circle showing the
February: March:
Weather relative frequency relative frequency
relative frequencies of the categories of some
qualitative variable.
Cloudy 1/28 = 0.036 3/31 = 0.097
– In this example, Region is proportionally divided into 4
Rainy 20/28 = 0.714 18/31 = 0.581
parts.
Sunny 7/28 = 0.250 10/31 = 0.323
Total = 1 Total = 1 (subject to rounding)
• Note, the total of the proportions must add up to 1.

• We can easily convert relative frequencies into
percentages by multiplying by 100.
continued
7 8
LO 2.2 Visualising frequency

Summarising quantitative data
distributions for qualitative data
LO 2.3 Summarise quantitative data by forming frequency
• A bar chart depicts the frequency or the relative distributions.
frequency for each category of the qualitative data
as a series of horizontal or vertical bars, the lengths
of which are proportional to the values depicted. • A frequency distribution for quantitative data
– For example, Adidas’s sales groups data into intervals called classes, and
may be proportionally records the number of observations that fall into
compared for each each class.
region over these
two periods.
continued
9 10
LO 2.3 Summarising quantitative data LO 2.3 Summarising quantitative data
• The raw data from the introductory case has

Guidelines for constructing a frequency distribution
been converted into a frequency distribution in
– Classes are mutually exclusive the following table.
– Classes are exhaustive Class (in $1,000s) Frequency
209 up to 306.2
– The number of classes usually ranges from 5 to 20 6
306.2 up to 403.4 19
– Approximating the class width 403.4 up to 500.6 4
500.6 up to 597.8 5
Largest value − Smallest value
597.8 up to 695 2
Number of classes
Total = 36
continued continued
11 12
2
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Class (in $1,000s) Frequency • A cumulative frequency distribution
209 up to 306.2 6 specifies how many observations fall below
306.2 up to 403.4 19 the upper limit of a particular class.
403.4 up to 500.6 4 Class (in $1,000s) Frequency Cumulative frequency
500.6 up to 597.8 5 200 up to 300 6 6
597.8 up to 695 2 300 up to 400 19 6 + 19 = 25
Total = 36 400 up to 500 4 6 + 19 + 4 = 29
500 up to 600 5 6 + 19 + 4 + 5 = 34
• What is the price range over this period?
600 up to 700 2 6 + 19 + 4 + 5 + 2 = 36
– $209,000 up to $695,000
Total = 36
• How many houses sold in the $403,400 up to $500,600 range?
– 4 houses • How many houses sold for less than $600,000?
– 34 houses
continued continued
13 14
• A relative frequency distribution identifies the • Here are the relative frequency and the cumulative
proportion or fraction of values that fall into each relative frequency distributions for the house price
class. data.
Class frequency Class (in $1,000s) Relative frequency Cumulative relative frequency
Class relative frequency =
Total number of observatio ns 200 up to 300 6/36 = 0.16 = 0.16
300 up to 400 19/36 = 0.53 0.16 + 0.53 = 0.69
400 up to 500 4/36 = 0.11 0.16 + 0.53 + 0.11 = 0.80
• A cumulative relative frequency distribution 500 up to 600 5/36 = 0.14 0.16 + 0.53 + 0.11 + 0.14 = 0.94
gives the proportion or fraction of values that fall 600 up to 700 2/36 = 0.06 0.16 + 0.53 + 0.11 + 0.14 + 0.06 = 1
below the upper limit of each class. Total = 1
continued continued
15 16
LO 2.3 Summarising quantitative data Visualising frequency distributions

for quantitative data
Use the data on the previous slide to answer the LO 2.4 Construct and interpret histograms, polygons
and ogives.
following questions.
– Histograms
1. What percentage of the houses sold for at least
$400,000 but not more than $500,000?
– 11%
2. What percentage of the houses sold for less than

<INSERT FIG 2.14, page 41 HERE>
$500,000?
– 80% – Polygons
continued
17 18
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Visualising frequency distributions LO 2.4 Visualising frequency

for quantitative data distributions for quantitative data
LO 2.4 Construct and interpret histograms, polygons
and ogives • A histogram is a visual representation of a
frequency or a relative frequency distribution.
– Ogives
– Bar height represents the respective class frequency
(or relative frequency).
– Bar width represents the class width.
continued continued
19 20
LO 2.4 Visualising frequency LO 2.4 Visualising frequency

distributions for quantitative data distributions for quantitative data
• Here are the frequency and relative frequency • Shape of distribution: typically symmetric or skewed
histograms for the house price data. – Symmetric—mirror image on both sides of its centre
– Note that the only difference is the y-axis scale.

continued continued
21 22

• Skewed distribution
• A polygon is a visual representation of a frequency
– Positively skewed—data or a relative frequency distribution.
forms a long, narrow tail
to the right – Plot the class midpoints on the x-axis and associated
frequency (or relative frequency) on the y-axis.
– Negatively skewed— – Neighbouring points are connected with a straight line.

data forms a long,
narrow tail to the left.
continued continued
23 24
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• Here is a polygon for the house price data.
• An ogive is a visual representation of a cumulative
frequency or a cumulative relative frequency
distribution.
– Plot the cumulative frequency (or cumulative relative

frequency) of each class above the upper limit of the
corresponding class.
– The neighbouring points are then connected.
continued continued
25 26
LO 2.4 Visualising frequency

Stem-and-leaf diagrams
distributions for quantitative data
LO 2.5 Construct and interpret a stem-and-leaf diagram.
• Here is an ogive for the house price data.
• A stem-and-leaf diagram provides a visual
display of quantitative data.
• It gives an overall picture of the data’s centre and

variability.
• Each value of the data set is separated into two

parts: the stem consists of the leftmost digits,
– Use the ogive to approximate the percentage of
houses that sold for less than $550,000.
while the leaf is the last digit.
Answer: 85%
continued
27 28
LO 2.5 Stem-and-leaf diagrams Scatterplots

• The following data set shows the wealthiest people LO 2.6 Construct and interpret a scatterplot.
in the world and their ages. • A scatterplot is used to depict two potentially
– The leftmost digit of the age is the stem while the last digit related variables.
is the leaf, as shown in the diagram on the right.
– Each point is a pairing: y-axis (xi,yi)
(x1,y1), (x2,y2), etc.
– This scatterplot shows

income against
education.
x-axis
continued
29 30
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LO 2.6 Scatterplots LO 2.6 Scatterplots
• Linear relationship: upward- or downward-sloping • Non-linear relationship

trend of the data
– As x increases,
– Positive linear relationship y increases at an
(shown here): increasing (or
as x increases, so does y. decreasing) rate.
– Negative linear relationship: – As x increases,

as x increases, y decreases at an
y decreases. increasing (or
decreasing) rate.
continued continued
31 32
LO 2.2, LO 2.4, LO 2.6

LO 2.6 Scatterplots
Some Excel commands
• No relationship: data is randomly scattered with no • Pie chart or bar chart: select the relevant categorical
discernible pattern names with respective data, then choose Insert >
Pie > 2-D Pie, or Insert > Bar > 2-D Bar.
– In this scatterplot, there
is no apparent
relationship between x • Histogram: select the relevant data and choose
and y. Data > Data Analysis > Histogram.
• Scatterplot: select the x- and y-coordinates, choose

Insert > Scatter, and select the graph at the top left.
33 34

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1/14/2019

House prices in south-west Victoria House prices in south-west Victoria

Summarising qualitative data LO 2.1 Summarising qualitative data

LO 2.1 Summarising qualitative data Visualising frequency distributions for

• Note, the total of the proportions must add up to 1.

LO 2.2 Visualising frequency

LO 2.3 Summarising quantitative data LO 2.3 Summarising quantitative data

• The raw data from the introductory case has

LO 2.3 Summarising quantitative data LO 2.3 Summarising quantitative data

LO 2.3 Summarising quantitative data LO 2.3 Summarising quantitative data

below the upper limit of each class. Total = 1

LO 2.3 Summarising quantitative data Visualising frequency distributions

2. What percentage of the houses sold for less than

Visualising frequency distributions LO 2.4 Visualising frequency

– Bar width represents the class width.

LO 2.4 Visualising frequency LO 2.4 Visualising frequency

– Note that the only difference is the y-axis scale.

LO 2.4 Visualising frequency LO 2.4 Visualising frequency

– Negatively skewed— – Neighbouring points are connected with a straight line.

LO 2.4 Visualising frequency LO 2.4 Visualising frequency

– Plot the cumulative frequency (or cumulative relative

– The neighbouring points are then connected.

LO 2.4 Visualising frequency

• It gives an overall picture of the data’s centre and

• Each value of the data set is separated into two

LO 2.5 Stem-and-leaf diagrams Scatterplots

– This scatterplot shows

LO 2.6 Scatterplots LO 2.6 Scatterplots

• Linear relationship: upward- or downward-sloping • Non-linear relationship

– Negative linear relationship: – As x increases,

LO 2.2, LO 2.4, LO 2.6

• Scatterplot: select the x- and y-coordinates, choose

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