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OPRE 6301/SYSM 6303

Quantitative Introduction to Risk and
Uncertainty in Business
3-1

Chapter Three
Graphical Descriptive Techniques II

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Describing Interval Data

Frequency Distribution
Histogram
Stem and Leaf Plots
Ogive

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Describing Interval Data

Must begin by determining
1. Number of class intervals
2. Class interval width
3. Classes
Lets begin exploring these methods
using Data File Xm03-01.xls
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Describing Interval Data

Guideline for number of class intervals

Alternate guideline Sturges formula

Number of class intervals 1 3.3 log(n)
1 3.3 log(200) 1 3.3(2.3) 8.59

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Describing Interval Data

Determining the class width
Class width

Largest Observatio n - Smallest Observatio n

Number of Classes

Class width

119.63 - 0
14.95 15
8

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Describing Interval Data

Frequency Distribution

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Describing Interval Data

Histogram

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Histogram Shapes
Symmetrical

Skewed

Positively or
Right Skewed

Negatively or
Left Skewed

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Histogram Shapes
Modality
A unimodal histogram is one with a single peak,
while a bimodal histogram is one with two peaks:
Unimodal
Frequency

Frequency

Bimodal

Variable

Variable

A modal class is the class with

the largest number of observations
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Describing Interval Data

Stem and Leaf Display
Lets explore this method using Xm03-04.xls
77
74
75
75
67
72

81
76
79
73
59
83

77
74
78
67
82
55

73
92
75
75
52
72

78
83
81
73
72
71

53
75
76
59
82
82

70
71
75
74
53
49

56
61
61
54
44
54

60
50
52
47
46
50

51
44
52
53
56
53

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Describing Interval Data

Stem Leaf
4

44679

00122233334456699

01177

0112223334445555556677889

1122233

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Describing Interval Data

Cumulative Relative Frequency

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Describing Interval Data

Ogive of the Cumulative Relative Frequency

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Describing Time Series Data

Line Chart
Lets explore this method using Excel and
Data File Xm03-05.xls

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Graphical Excellence
1. Present large data sets concisely and
coherently
2. Ideas and concepts are clearly understood by
the viewer
3. Encourages the viewer to compare two or
more variables
4. Induces the viewer to address the substance of
the data and not the form of the graph
5. No distortion of what the data reveal
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