Chapter 1

Introduction and data collection

1.12 A population contains all the items of interest whereas a sample contains only a
portion of the items in the population.

1.13 A statistic is a summary measure describing a sample whereas a parameter is a

summary measure describing an entire population.

1.14 Descriptive statistical methods deal with the collection, presentation,

summarisation and analysis of data whereas inferential statistical methods deal
with decisions arising from the projection of sample information to the
characteristics of a population.

1.15 Categorical random variables yield categorical responses, such as yes or no

answers. Numerical random variables yield numerical responses, such as height
in centimetres.

1.16 Discrete random variables produce numerical responses that arise from a
counting process. Continuous random variables produce numerical responses that
arise from a measuring process.

1.17 An operational definition is a universally accepted meaning that is clear to all

associated with an analysis. Without an operational definition, confusion can
occur.

1.18 The four types of measurement scales are (i) nominal scale, (ii) ordinal scale, (iii)
interval scale and (iv) ratio scale.

Chapter 2

Presenting data in tables and charts

2.41 A histogram uses bars to represent each class while a polygon uses a single point.
The histogram should be used for only one group, while several polygons can be
plotted on a single graph.

2.42 A summary table allows one to determine the frequency or percentage of

occurrences in each category.

2.43 A bar chart is useful for comparing categories. A pie chart is useful when
examining the portion of the whole that is in each category.

2.44 The bar chart is plotted with the categories on the vertical axis and the
frequencies or percentages on the horizontal axis. In addition, there is a
separation between categories. The histogram is plotted with the class grouping
on the horizontal axis and the frequencies or percentages on the vertical axis. This
allows one to more easily determine the distribution of the data. There are no
gaps between the classes in the histogram.

2.45 A time-series plot is a type of scatter diagram with the time on the x axis.
2.46 Percentage breakdowns according to the total percentage, the raw percentage
and/or the column percentage allow the interpretation of data in a two-way
contingency table from several different perspectives.

2.54 (a) Stem-and-leaf display

Property Sales - Asking Price

Stem unit: $100,000

3 2233344456666678889999
4 0000011111112223333444555555666667788889999
5 00112222233344455678999
6 0012223688
7
8 44

Property prices range from $320,000 to $840,000. Asking prices are

concentrated between $300,000 and $600,000. Only two asking prices are
above $800,000.
 (b) Frequency percentage and cumulative distributions

Cumulative Cumulative
Asking Price, $ Frequency Percent Frequency Percent
300000 to < 350000 8 8.0% 8 8.0%
350000 to < 400000 17 17.0% 25 25.0%
400000 to < 450000 21 21.0% 46 46.0%
450000 to < 500000 20 20.0% 66 66.0%
500000 to < 550000 16 16.0% 82 82.0%
550000 to < 600000 6 6.0% 88 88.0%
600000 to < 650000 7 7.0% 95 95.0%
650000 to < 700000 3 3.0% 98 98.0%
700000 to < 750000 0 0.0% 98 98.0%
750000 to < 800000 0 0.0% 98 98.0%
800000 to < 850000 2 2.0% 100 100.0%
Total 100 100.0%

(c) Frequency histogram, percentage polygon and ogive

Property Sales

25

20

15
Frequency

10

0
00

00

00

00

00

00
00

00

00

00

00

00
,0

,0

,0

,0

,0

,0
,0

,0

,0

,0

,0

,0
00

50

00

50

00

50

00

50

00

50

00

50
$3

$3

$4

$4

$5

$5

$6

$6

$7

$7

$8

$8

Asking Price

Percentage polygon
25

20

15
Percentage

10

0
0 0 0 0 0 0 0 0 0 0 0 0 0
5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00
27 32 37 42 47 52 57 62 67 72 77 82 87

Asking price
 Property Sales

100%
80%
60%
40%
20%
0%
00

00

00

00

00

00
00

00

00

00

00

00
,0

,0

,0

,0

,0

,0
,0

,0

,0

,0

,0

,0
00

50

00

50

00

50

00

50

00

50

00

50
$3

$3

$4

$4

$5

$5

$6

$6

$7

$7

$8

$8
Asking Price

(d) Can conclude that:

 Property prices in the region range from approximately $300,00 to
$850,000.
 The asking prices are concentrated between $400,000 and $500,000.
 Only two prices are above $700,000.
 66% of asking prices are below $500,000.
 74% of prices are between $350,000 and $550,000.

(e) Scatter diagram

Asking and Selling Price

$900,000
$800,000
$700,000
$600,000
Selling Price

$500,000
$400,000
$300,000
$200,000
$100,000
$0
$300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000
Asking Price

There is a strong positive linear relationship between selling price and

asking price.
 (f) Cross-tabulation based on totals

Percent of Total: - Bedrooms -

- Type - 1 2 3 4 >4 Total
House 2.0% 7.0% 43.0% 24.0% 6.0% 82.0%
Unit 4.0% 12.0% 2.0% 0.0% 0.0% 18.0%
Total 6.0% 19.0% 45.0% 24.0% 6.0% 100.0%

Percent of Rows: - Bedrooms -

- Type - 1 2 3 4 >4 Total
House 2.4% 8.5% 52.4% 29.3% 7.3% 100.0%
Unit 22.2% 66.7% 11.1% 0.0% 0.0% 100.0%
Total 6.0% 19.0% 45.0% 24.0% 7.3% 100.0%

Percent of Columns: - Bedrooms -

- Type - 1 2 3 4 >4 Total
House 33.3% 36.8% 95.6% 100.0% 100.0% 82.0%
Unit 66.7% 63.2% 4.4% 0.0% 0.0% 18.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 (g) Side-by-side charts
Type and Number of Bedrooms

>4
Number of Bedrooms

4
Unit
3
House

0% 10% 20% 30% 40% 50% 60% 70%

(h) Units tend to have a maximum of three bedrooms while the number of
bedrooms in a house varies from one to eight.