Statistics for Managers

Using Microsoft® Excel

4th Edition

Chapter 2

Presenting Data in Tables and Charts

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-

Hall, Inc. Chap 2-1
 Chapter Goals
After completing this chapter, you should be able to:
 Create an ordered array and a stem-and-leaf display
 Construct and interpret a frequency distribution, polygon,
and ogive
 Construct a histogram
 Create and interpret bar charts, pie charts, and scatter
diagrams
 Present and interpret category data in bar charts and pie
charts
 Describe appropriate and inappropriate ways to display
data graphically
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-2
 Organizing and Presenting
Data Graphically
 Data in raw form are usually not easy to use
for decision making
 Some type of organization is needed
 Table
 Graph
 Techniques reviewed here:
 Ordered Array
 Stem-and-Leaf Display
 Frequency Distributions and Histograms
 Bar charts and pie charts
 Contingency tables

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-3
 Tables and Charts for
Numerical Data
Numerical Data

Frequency Distributions
Ordered Array and
Cumulative Distributions

Stem-and-Leaf
Display Histogram Polygon Ogive

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-4
 The Ordered Array

A sorted list of data:

 Shows range (min to max)
 Provides some signals about variability
within the range
 May help identify outliers (unusual observations)
 If the data set is large, the ordered array is
less useful

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-5
 The Ordered Array
(continued)

 Data in raw form (as collected):

24, 26, 24, 21, 27, 27, 30, 41, 32, 38

 Data in ordered array from smallest to largest:

21, 24, 24, 26, 27, 27, 30, 32, 38, 41

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-6
 Stem-and-Leaf Diagram

 A simple way to see distribution details in a

data set

METHOD: Separate the sorted data series

into leading digits (the stem) and
the trailing digits (the leaves)

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-7
 Example
Data in ordered array:
21, 24, 24, 26, 27, 27, 30, 32, 38, 41

 Here, use the 10’s digit for the stem unit:

Stem Leaf
 21 is shown as 2 1
 38 is shown as 3 8

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-8
 Example
(continued)
Data in ordered array:
21, 24, 24, 26, 27, 27, 30, 32, 38, 41

 Completed stem-and-leaf diagram:

Stem Leaves
2 1 4 4 6 7 7
3 0 2 8
4 1

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-9
 Using other stem units
 Using the 100’s digit as the stem:
 Round off the 10’s digit to form the leaves

Stem Leaf

613 would become 6 1
 776 would become 7 8
 ...

1224 becomes 12 2

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-10
 Using other stem units
(continued)

 Using the 100’s digit as the stem:

 The completed stem-and-leaf display:
Data:
Stem Leaves
613, 632, 658, 717, 6 136
722, 750, 776, 827, 7 2258
841, 859, 863, 891, 8 346699
894, 906, 928, 933,
9 13368
955, 982, 1034,
1047,1056, 1140, 10 356
1169, 1224 11 47
12 2
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-11
 Tabulating Numerical Data:
Frequency Distributions

What is a Frequency Distribution?

 A frequency distribution is a list or a table …
 containing class groupings (categories or
ranges within which the data falls) ...
 and the corresponding frequencies with which
data falls within each grouping or category

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-12
 Why Use Frequency Distributions?

 A frequency distribution is a way to

summarize data
 The distribution condenses the raw data
into a more useful form...
 and allows for a quick visual interpretation
of the data

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-13
 Class Intervals
and Class Boundaries
 Each class grouping has the same width
 Determine the width of each interval by
range
Width of int erval ≅
number of desired class groupings

 Use at least 5 but no more than 15 groupings

 Class boundaries never overlap
 Round up the interval width to get desirable
endpoints

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-14
 Frequency Distribution Example

Example: A manufacturer of insulation randomly

selects 20 winter days and records the daily
high temperature

24, 35, 17, 21, 24, 37, 26, 46, 58, 30,
32, 13, 12, 38, 41, 43, 44, 27, 53, 27

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-15
 Frequency Distribution Example
(continued)

 Sort raw data in ascending order:

12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58
 Find range: 58 - 12 = 46
 Select number of classes: 5 (usually between 5 and 15)
 Compute class interval (width): 10 (46/5 then round up)
 Determine class boundaries (limits): 10, 20, 30, 40, 50, 60
 Compute class midpoints: 15, 25, 35, 45, 55
 Count observations & assign to classes

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-16
 Frequency Distribution Example
(continued)
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Relative
Class Frequency Frequency Percentage

10 but less than 20 3 .15 15

20 but less than 30 6 .30 30
30 but less than 40 5 .25 25

40 but less than 50 4 .20 20

50 but less than 60 2 .10 10

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-17
 Graphing Numerical Data:
The Histogram

 A graph of the data in a frequency distribution

is called a histogram
 The class boundaries (or class midpoints)
are shown on the horizontal axis
 the vertical axis is either frequency, relative
frequency, or percentage
 Bars of the appropriate heights are used to
represent the number of observations within
each class
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-18
 Histogram Example

Class
Class Midpoint Frequency
10 but less than 20 15 3
20 but less than 30 25 6
30 but less than 40 35 5 Histogram : Daily High Tem perature
40 but less than 50 45 4
7 6
50 but less than 60 55 2
6 5
Frequency

5 4
4 3
3 2
2
(No gaps 1 0 0
between 0
bars)
5 15 25 35 45 55 More
Class Midpoints
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-19
 Histograms in Excel

1
Select
Tools/Data Analysis

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-20
 Histograms in Excel
(continued)

2
Choose Histogram

(
Input data range and bin
range (bin range is a cell
range containing the upper class
3 boundaries for each class
grouping)

Select Chart Output

and click “OK”
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-21
 Questions for Grouping Data
into Classes

 1. How wide should each interval be?

(How many classes should be used?)
 2. How should the endpoints of the
intervals be determined?

Often answered by trial and error, subject to
user judgment

The goal is to create a distribution that is
neither too "jagged" nor too "blocky”

Goal is to appropriately show the pattern of
variation in the data

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-22
 How Many Class Intervals?

 Many (Narrow class intervals) 3.5

3
 may yield a very jagged distribution 2.5

Frequency
with gaps from empty classes 2
1.5
 Can give a poor indication of how 1
0.5
frequency varies across classes 0

4
8
12
16
20
24
28
32
36
40
44
48
52
56
60
More
Temperature

 Few (Wide class intervals) 12

10
 may compress variation too much and 8

Frequency
yield a blocky distribution 6
4
 can obscure important patterns of 2

variation. 0
0 30 60 More
Temperature
(X axis labels are upper class endpoints)

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-23
 Graphing Numerical Data:
The Frequency Polygon
Class
Class Midpoint Frequency
10 but less than 20 15 3
20 but less than 30 25 6
30 but less than 40 35 5 Frequency Polygon: Daily High Temperature
40 but less than 50 45 4
50 but less than 60 55 2 7
6
5
Frequency

4
3
(In a percentage 2
polygon the vertical axis
1
would be defined to
show the percentage of 0
observations per class) 5 15 25 35 45 55 More
Class Midpoints
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-24
 Tabulating Numerical Data:
Cumulative Frequency
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Cumulative Cumulative
Class Frequency Percentage
Frequency Percentage

10 but less than 20 3 15 3 15

20 but less than 30 6 30 9 45
30 but less than 40 5 25 14 70
40 but less than 50 4 20 18 90
50 but less than 60 2 10 20 100
Total 20 100

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-25
 Graphing Cumulative Frequencies:
The Ogive (Cumulative % Polygon)
Lower
class Cumulative
Class boundary Percentage
Less than 10 10 0
10 but less than 20 20 15
20 but less than 30 30 45 Ogive: Daily High Temperature
30 but less than 40 40 70
40 but less than 50 50 90 100

Cumulative Percentage
50 but less than 60 60 100
80

60

40

20

0
10 20 30 40 50 60
Class Boundaries (Not Midpoints)
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-26
 Scatter Diagrams

 Scatter Diagrams are used for

bivariate numerical data
 Bivariate data consists of paired
observations taken from two numerical
variables

 The Scatter Diagram:

 one variable is measured on the vertical

axis and the other variable is measured

on the horizontal axis

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-27
 Scatter Diagram Example

Volume Cost per

Cost per Day vs. Production Volume
per day day
23 125 250
26 140 200
29 146
Cost per Day

150
33 160
38 167 100
42 170 50
50 188
0
55 195
0 10 20 30 40 50 60 70
60 200
Volume per Day

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-28
 Scatter Diagrams in Excel

1
Select the chart wizard

2
Select XY(Scatter) option,
then click “Next”

3
When prompted, enter
the data range, desired
legend, and desired
destination to complete
the scatter diagram
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-29
 Tables and Charts for
Categorical Data
Categorical
Data

Tabulating Data Graphing Data

Summary Bar Pie Pareto

Table Charts Charts Diagram

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-30
 The Summary Table
Summarize data by category

Example: Current Investment Portfolio

Investment Amount Percentage
Type (in thousands $) (%)

Stocks 46.5 42.27

Bonds 32.0 29.09
CD 15.5 14.09
(Variables are Savings 16.0 14.55
Categorical)
Total 110.0 100.0

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-31
 Bar and Pie Charts

 Bar charts and Pie charts are often used

for qualitative (category) data

 Height of bar or size of pie slice shows

the frequency or percentage for each
category

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-32
 Bar Chart Example
Current Investment Portfolio
Investment Amount Percentage
Type (in thousands $) (%)

Stocks 46.5 42.27

Bonds 32.0 29.09
CD 15.5 14.09 Investor's Portfolio
Savings 16.0 14.55
Savings
Total 110.0 100.0
CD

Bonds
Stocks

0 10 20 30 40 50
Amount in $1000's
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-33
 Pie Chart Example
Current Investment Portfolio
Investment Amount Percentage
Type (in thousands $) (%)

Stocks 46.5 42.27

Bonds 32.0 29.09
Savings
CD 15.5 14.09 15%
Savings 16.0 14.55 Stocks
Total 110.0 100.0 42%
CD
14%

Percentages
are rounded to
Bonds the nearest
29% percent

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-34
 Pareto Diagram

 Used to portray categorical data

 A bar chart, where categories are shown in
descending order of frequency
 A cumulative polygon is often shown in the
same graph
 Used to separate the “vital few” from the “trivial
many”

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-35
 Pareto Diagram Example
Current Investment Portfolio
45% 100%
% invested in each category (bar

40% 90%

80%

cumulative % invested
35%

70%
30%

(line graph)
60%
graph)

25%
50%
20%
40%

15%
30%

10%
20%

5% 10%

0% 0%
Stocks Bonds Savings CD

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-36
 Tabulating and Graphing
Multivariate Categorical Data
 Contingency Table for Investment Choices ($1000’s)
Investment Investor A Investor B Investor C Total
Category

Stocks 46.5 55 27.5 129

Bonds 32.0 44 19.0 95
CD 15.5 20 13.5 49
Savings 16.0 28 7.0 51
Total 110.0 147 67.0 324

(Individual values could also be expressed as percentages of the overall total,

percentages of the row totals, or percentages of the column totals)

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-37
 Tabulating and Graphing
Multivariate Categorical Data
(continued)

 Side by side bar charts

Comparing Investors

S avings

CD

B onds

S toc k s

0 10 20 30 40 50 60

Inves tor A Inves tor B Inves tor C

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-38
 Side-by-Side Chart Example
 Sales by quarter for three sales territories:
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East 20.4 27.4 59 20.4
West 30.6 38.6 34.6 31.6
North 45.9 46.9 45 43.9

60

50

40
East
30 West
North
20

10

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-39
 Principles of Graphical Excellence
 Present data in a way that provides substance,
statistics and design
 Communicate complex ideas with clarity,
precision and efficiency
 Give the largest number of ideas in the most
efficient manner
 Excellence almost always involves several
dimensions
 Tell the truth about the data

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-40
 Errors in Presenting Data

 Using “chart junk”

 Failing to provide a relative
basis in comparing data
between groups
 Compressing or distorting the vertical axis
 Providing no zero point on the vertical axis

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-41
 Chart Junk

Bad Presentation Good Presentation

Minimum Wage Minimum Wage
$
1960: $1.00 4
1970: $1.60
2

1980: $3.10
0
1960 1970 1980 1990
1990: $3.80

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-42
 listen
No Relative Basis

Bad Presentation  Good Presentation

A’s received by A’s received by
Freq. students. % students.

300 30%
200 20%
100 10%
0 0%
FR SO JR SR FR SO JR SR

FR = Freshmen, SO = Sophomore, JR = Junior, SR = Senior

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-43
 Compressing Vertical Axis

Bad Presentation Good Presentation

Quarterly Sales Quarterly Sales
$ $
200 50

100 25

0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-44
 No Zero Point On Vertical Axis

Bad Presentation
$Good Presentations
Monthly Sales
45
Monthly Sales 42
$ 39
45
36
42
0
39 J F M A M J
or
36 $
J F M A M J 60

40
Graphing the first six months of sales
20
0
J F M A M J
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-45
 Chapter Summary
 Data in raw form are usually not easy to use for
decision making -- Some type of organization is
needed:
♦ Table ♦ Graph
 Techniques reviewed in this chapter:
 Ordered array and stem-and-leaf display
 Frequency distributions and histograms
 Percentage polygons and ogives
 Scatter diagrams for bivariate data
 Bar charts, pie charts, and Pareto diagrams
 Contingency tables and side-by-side bar charts
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 2-46