Slides Prepared by JOHN S. LOUCKS St.

Edwards University

2003 Thomson/South-Western

Slide 1

Chapter 2 Descriptive Statistics: Tabular and Graphical Methods

Summarizing Qualitative Data Summarizing Quantitative Data Exploratory Data Analysis Crosstabulations and Scatter Diagrams

2003 Thomson/South-Western

Slide 2

Summarizing Qualitative Data

Frequency Distribution Relative Frequency Percent Frequency Distribution Bar Graph Pie Chart

2003 Thomson/South-Western

Slide 3

Frequency Distribution

A frequency distribution is a tabular summary of data showing the frequency (or number) of items in each of several nonoverlapping classes. The objective is to provide insights about the data that cannot be quickly obtained by looking only at the original data.

2003 Thomson/South-Western

Slide 4

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 poor. The ratings provided by a sample of 20 quests are shown below. Below Average Average Above Average Above Average Above Average Below Average Average Poor Above Average Excellent Average Above Average Above Average Average
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Above Average Above Average Below Average Poor Above Average Average

Slide 5

Example: Marada Inn

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

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Slide 6

Relative Frequency Distribution

The relative frequency of a class is the fraction or proportion of the total number of data items belonging to the class. A relative frequency distribution is a tabular summary of a set of data showing the relative frequency for each class.

2003 Thomson/South-Western

Slide 7

Percent Frequency Distribution

The percent frequency of a class is the relative frequency multiplied by 100. A percent frequency distribution is a tabular summary of a set of data showing the percent frequency for each class.

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Slide 8

Example: Marada Inn

Relative Frequency and Percent Frequency Distributions Rating

Poor Below Average Average Above Average Excellent Total Relative Percent Frequency Frequency .10 .15 .25 .45 .05 1.00 10 15 25 45 5 100

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Slide 9

Bar Graph

A bar graph is a graphical device for depicting qualitative data. On 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 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.

2003 Thomson/South-Western

Slide 10

Example: Marada Inn

Bar Graph
9 8 7 6 5 4

Frequency

3
2 1 Poor Below Average Above Excellent Average Average Rating

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Slide 11

Pie Chart

The pie chart is a commonly used graphical device for presenting relative frequency distributions for qualitative 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.

2003 Thomson/South-Western

Slide 12

Example: Marada Inn

Pie Chart
Exc. Poor 5% 10%

Above Average 45%

Below Average 15% Average 25%

Quality Ratings
2003 Thomson/South-Western Slide 13

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.

2003 Thomson/South-Western

Slide 14

Summarizing Quantitative Data

Frequency Distribution Relative Frequency and Percent Frequency Distributions Dot Plot Histogram Cumulative Distributions Ogive

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Slide 15

Example: Hudson Auto Repair

The manager of Hudson Auto would like to get a better picture of the distribution of costs for engine tune-up parts. A sample of 50 customer invoices has been taken and the costs of parts, rounded to the nearest dollar, are listed below.

91 71 104 85 62

78 69 74 97 82

93 72 62 88 98

57 89 68 68 101

75 66 97 83 79

52 75 105 68 105

99 79 77 71 79

80 75 65 69 69

97 72 80 67 62

62 76 109 74 73

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Slide 16

Frequency Distribution

Guidelines for Selecting 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.

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Slide 17

Frequency Distribution

Guidelines for Selecting Width of Classes Use classes of equal width. Approximate Class Width =

Largest Data Value Smallest Data Value Number of Classes

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Slide 18

Example: Hudson Auto Repair

Frequency Distribution If we choose six classes: Approximate Class Width = (109 - 52)/6 = 9.5 10
Cost ($) 50-59 60-69 70-79 80-89 90-99 100-109 Frequency 2 13 16 7 7 5 Total 50
Slide 19

2003 Thomson/South-Western

Example: Hudson Auto Repair

Relative Frequency and Percent Frequency Distributions

Relative Cost ($) Frequency 50-59 .04 60-69 .26 70-79 .32 80-89 .14 90-99 .14 100-109 .10 Total 1.00 Percent Frequency 4 26 32 14 14 10 100
Slide 20

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Example: Hudson Auto Repair

Insights Gained from the Percent 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.

2003 Thomson/South-Western

Slide 21

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.

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Slide 22

Example: Hudson Auto Repair

Dot Plot

. . .. . . . . .. .. .. .. . . . . . ..... .......... .. . .. . . ... . .. .

50 60 70 80 90 100 110

Cost ($)

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Slide 23

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.

2003 Thomson/South-Western

Slide 24

Example: Hudson Auto Repair

Histogram
18 16 14

Frequency

12
10 8 6 4 2 50 60 70 80 90 100 110

Parts Cost ($)

Slide 25

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Cumulative Distributions

Cumulative frequency distribution -- shows the number of items with values less than or equal to the upper limit of each class. Cumulative relative frequency distribution -- shows the proportion of items with values less than or equal to the upper limit of each class. Cumulative percent frequency distribution -- shows the percentage of items with values less than or equal to the upper limit of each class.

2003 Thomson/South-Western

Slide 26

Example: Hudson Auto Repair

Cumulative Distributions
Cumulative Cumulative Cumulative Relative Percent Frequency Frequency Frequency 2 .04 4 15 .30 30 31 .62 62 38 .76 76 45 .90 90 50 1.00 100

Cost ($) < 59 < 69 < 79 < 89 < 99 < 109

2003 Thomson/South-Western

Slide 27

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.

2003 Thomson/South-Western

Slide 28

Example: Hudson Auto Repair

Ogive 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.

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Slide 29

Example: Hudson Auto Repair

Ogive with Cumulative Percent Frequencies

100 80 60

Cumulative Percent Frequency

40
20 50 60 70 80 90 100 110

Parts Cost ($)

Slide 30

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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.

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Slide 31

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.

2003 Thomson/South-Western

Slide 32

Example: Hudson Auto Repair

Stem-and-Leaf Display
5 6 7 8 9 10 2 2 1 0 1 1 7 2 1 0 3 4

2 2 2 7 5

2 2 3 7 5

5 3 5 7 9

6 4 8 8

7 8 8 8 9 9 9 4 5 5 5 6 7 8 9 9 9 9 9

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Slide 33

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 by using two more 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 values corresponds to values of 5-9.

2003 Thomson/South-Western

Slide 34

Example: Hudson Auto Repair

Stretched Stem-and-Leaf Display

5 5 6 6 7 7 8 8 9 9 10 10 2 7 2 5 1 5 0 5 1 7 1 5

2 6 1 5 0 8 3 7 4 5

2 7 2 5 2 9

2 8 8 8 9 9 9 2 3 4 4 6 7 8 9 9 9 3

7 8 9 9
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2003 Thomson/South-Western

Stem-and-Leaf Display

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.

2003 Thomson/South-Western

Slide 36

Example: Leaf Unit = 0.1

If we have data with values such as
8.6 11.7 9.4 9.1 10.2 11.0 8.8

a stem-and-leaf display of these data will be Leaf Unit = 0.1 8 6 8 9 1 4 10 2 11 0 7

2003 Thomson/South-Western

Slide 37

Example: Leaf Unit = 10

If we have data with values such as
1806 1717 1974 1791 1682 1910 1838

a stem-and-leaf display of these data will be Leaf Unit = 10 16 8 17 1 9 18 0 3 19 1 7

2003 Thomson/South-Western

Slide 38

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 (or more) variables simultaneously.

2003 Thomson/South-Western

Slide 39

Crosstabulation

Crosstabulation is a tabular method for summarizing the data for two variables simultaneously. Crosstabulation can be used when: One variable is qualitative and the other is quantitative Both variables are qualitative Both variables are quantitative The left and top margin labels define the classes for the two variables.

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Slide 40

Example: Finger Lakes Homes

Crosstabulation The number of Finger Lakes homes sold for each style and price for the past two years is shown below. Price Range
Colonial 18 12 30

Home Style Ranch Split A-Frame Total

6 14 20 19 16 35 12 3 15 55 45 100

< $99,000 > $99,000 Total

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Slide 41

Example: Finger Lakes Homes

Insights Gained from the Preceding Crosstabulation The greatest number of homes in the sample (19) are a split-level style and priced at less than or equal to $99,000. Only three homes in the sample are an A-Frame style and priced at more than $99,000.

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Slide 42

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.

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Slide 43

Example: Finger Lakes Homes

Row Percentages
Price Range Home Style Ranch Split A-Frame Total 10.91 34.55 31.11 35.56 21.82 6.67 100 100

Colonial
32.73 26.67

< $99,000 > $99,000

Note: row totals are actually 100.01 due to rounding.

2003 Thomson/South-Western

Slide 44

Example: Finger Lakes Homes

Column Percentages
Price Range Home Style Ranch Split A-Frame 30.00 70.00 100 54.29 45.71 100 80.00 20.00 100

Colonial
60.00 40.00 100

< $99,000 > $99,000 Total

2003 Thomson/South-Western

Slide 45

Scatter Diagram

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.

2003 Thomson/South-Western

Slide 46

Scatter Diagram

A Positive Relationship

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Scatter Diagram

A Negative Relationship

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Slide 48

Scatter Diagram

No Apparent Relationship

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Slide 49

Example: Panthers Football Team

Scatter Diagram The Panthers football team is interested in investigating the relationship, if any, between interceptions made and points scored. x = Number of Interceptions 1 3 2 1 3 y = Number of Points Scored 14 24 18 17 27
Slide 50

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Example: Panthers Football Team

Scatter Diagram Number of Points Scored

y
30

25 20 15
10 5 0

1 2 3 Number of Interceptions

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Slide 51

Example: Panthers Football Team

The preceding 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.

2003 Thomson/South-Western

Slide 52

Tabular and Graphical Procedures

Data
Qualitative Data Tabular Methods
Frequency Distribution Rel. Freq. Dist. % Freq. Dist. Crosstabulation

Quantitative Data Tabular Methods

Frequency Distribution Rel. Freq. Dist. Cum. Freq. Dist. Cum. Rel. Freq. Distribution Stem-and-Leaf Display Crosstabulation

Graphical Methods
Bar Graph Pie Chart

Graphical Methods
Dot Plot Histogram Ogive Scatter Diagram

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Slide 53

End of Chapter 2

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Slide 54