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Chapter 2- Charts and Graphs

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13 views24 pages

Chapter 2- Charts and Graphs

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maizon.darus
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© © All Rights Reserved
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BBI1213 / BBI1214

Business Statistics

Chapter 2
Charts and Graphs
2.1 Ungrouped and Grouped Data

• Raw data, or data that have not been summarized in


any way, are sometimes referred to as ungrouped data.
• Table 2.1 contains 60 years of raw data of the
unemployment rates for Canada.
• Data that have been organized into a frequency
distribution are called grouped data.
• Table 2.2 presents a frequency distribution for the data
displayed in Table 2.1.
• The distinction between ungrouped and grouped data
is important because the calculation of statistics differs
between the two types of data.
2.2 Frequency Distributions
• One particularly useful tool for grouping data
is the frequency distribution, which is a table
consisting of columns and rows.
• A class is a category into which qualitative
data can be classified.
• Class frequency is the number of observations
that fall in a particular class.
Example: A car dealer in KL makes the sales for the
following types of cars in the month of January 2022 as
shown in the table.
Car Model Number of Cars
Proton Waja 66
Proton Wira 50
Proton Saga 39
Proton Gen-2 25
Total 180

The first column consists of the qualitative variable that is


the car models, while the second column is the frequency
of the types of cars sold.
2.3 Pie Chart
• A pie chart can be used to represent categorical
data.
• It consists of one or more circles that are divided
into sectors.
• The sectors show the number of objects or
percentage of each group or category.
• The angle in the sector is proportional to the
number or percentage of elements in that
category.
• They are widely used in business, particularly to
represent such things as budget categories,
market share, and time/resource allocations.
Example: Adidas Group current assets in RM (million) for
the year 2022 are given in the table.
Current asset RM (million)
Stocks 1,520
Cash 720
Others 860
Total 3100

Construct a pie chart for the information above.

Solution:

(a) Number of categories = 3


(b) Percentage (to the nearest whole number)
1520
(i) Stocks = × 100 = 49%
3100
720
(ii) Cash = × 100 = 23%
3100
860
(iii) Others = × 100 = 28%
3100

(c) The percentage should be converted into degrees before


drawing.
1520
(i) Stocks = × 360 = 176.4°
3100
720
(ii) Cash = × 360 = 82.8°
3100
860
(iii) Others = × 360 = 100.8°
3100
Others
28%
Stocks
49%
Cash
23%
2.4 Bar Chart
• A bar chart is another graphical method for describing data
that can be divided into categories.
• A bar graph or chart contains two or more categories along
one axis and a series of bars, one for each category, along the
other axis. Typically, the length of the bar represents the
magnitude of the measure (amount, frequency, money,
percentage, etc.) for each category.
• The bar graph is qualitative because the categories are non-
numerical, and it may be either horizontal or vertical.
• However, an advantage of using a bar graph over a pie chart
for a given set of data is that for categories that are close in
value, it is considered easier to see the difference in the bars
of bar graph than discriminating between pie slices.
Example: The table below shows the quarterly profits
of the company ZA in the year 2022. Construct a bar
chart for the given data.
Quarter RM (million)

1st 30
2nd 35
3rd 40
4th 29
Example: The profits are higher in the second and third
quarters of 2022.
Example: Data shows how much is spent on
back to college shopping for an average student.
Plot a horizontal bar graph for the data.
2.5 Histogram
• A histogram is a graphical representation of the
frequency distribution in which bars represent
frequencies.
• It is a series of contiguous bars or rectangles that
represent the frequency of data in given class
intervals. If the class intervals used along the
horizontal axis are equal, then the height of the bars
represent the frequency of values in a given class
interval. If the class intervals are unequal, then the
areas of the bars (rectangles) can be used for relative
comparisons of class frequencies.
• A histogram is a useful tool for differentiating the
frequencies of class intervals. A quick glance at a
histogram reveals which class intervals produce
the highest frequency totals. Figure 2.1 clearly
shows that the class interval 7–under 9 yields by
far the highest frequency count (19).
• Examination of the histogram reveals where large
increases or decreases occur between classes,
such as from the 1–under 3 class to the 3–under
5 class, an increase of 8, and from the 7–under 9
class to the 9–under 11 class, a decrease of 12.
2.6 Frequency Polygons
• A frequency polygon, like the histogram, is a graphical
display of class frequencies. However, instead of using
bars or rectangles like a histogram, in a frequency
polygon each class frequency is plotted as a dot at the
class midpoint, and the dots are connected by a series
of line segments.
• Construction of a frequency polygon begins by scaling
class midpoints along the horizontal axis and the
frequency scale along the vertical axis. A dot is plotted
for the associated frequency value at each class
midpoint. Connecting these midpoint dots completes
the graph.
• Figure 2.5 shows a frequency polygon of the
distribution data from Table 2.2
2.7 Ogives (Cumulative Frequency Curve)
• An ogive (o-jive) is a cumulative frequency polygon.
Construction begins by labelling the x-axis with the class
endpoints and the y-axis with the frequencies. However,
the use of cumulative frequency values requires that the
scale along the y-axis be great enough to include the
frequency total. A dot of zero frequency is plotted at the
beginning of the first class, and construction proceeds by
marking a dot at the end of each class interval for the
cumulative value. Connecting the dots then completes
the ogive. Figure 2.6 presents an ogive produced by using
Excel for the data in Table 2.2.
• Ogives are most useful when the decision maker wants
to see running totals. For example, if a controller is
interested in controlling costs, an ogive could depict
cumulative costs over a fiscal year.
Class Frequency Cumulative Relative Cumulative Relative
Frequency Frequency Frequency

1-3 4 4 4/60 = 0.067 0.067

3-5 12 4+12 = 16 12/60 = 0.2 0.067 + 0.2 = 0.267

5-7 13 16+13 = 29 13/60 = 0.217 0.267 + 0.217 = 0.484

7-9 19 29+19 = 48 19/60 = 0.317 0.484 + 0.317 = 0.801

9-11 7 48+7 = 55 7/60 = 0.117 0.801 + 0.117 = 0.918

11-13 5 55+5 = 60 5/60 = 0.083 0.918 + 0.083 = 1


End of Chapter 2

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