Business Statistics CH (6)
Business Statistics CH (6)
DATA COLLECTION
&
PRESENTATION
Types of Data
Data sets can consist of two types of data:
Qualitative data and Quantitative data.
DATA
SECONDARY DATA
▪ Is the one that makes data available, which were collected by some other
agency.
▪ Obtained from such sources as census and survey reports, books, official
records, reported experimental results, previous research papers, bulletins,
magazines, newspapers, web sites, and other publications.
EXAMPLE
2. Direct Observation
3. Questionnaire method
FREQUENCY DISTRIBUTION
▪Frequency refers to the number of observations a
certain value occurred in a data.
▪A frequency distribution is the organization of
raw data in table form, using classes and
frequencies.
▪The tabular representation of values of a variable
together with the corresponding frequency is called
a Frequency Distribution (FD).
A.Ungrouped Frequency Distribution (UFD)
▪Shows a distribution where the values of a variable are linked
with the respective frequencies.
▪Example: Consider the number of children in 15 families
0 // 2
1 //// 4
2 //// 4
3 /// 3
4 // 2
Total 15
B. Grouped Frequency Distribution (GFD)
▪If the mass of the data is very large, it is necessary to condense the
data in to an appropriate number of classes or groups of values of a
variable and indicate the number of observed values that fall in to each
class.
▪A GFD is a frequency distribution where values of a variable are
linked in to groups & corresponded with the number of observations in
each group.
Values (xi)
1 - 25 26 - 50 51 - 75 76 - 100
Frequency (fi) 3 10 18 6
COMMON TERMINOLOGIES IN A GFD
i. Class:- group of values of a variable between two specified
numbers called lower class limit (LCL) & upper-class limit (UCL)
Class limits (CL): It separates one class from another. The limits
could actually appear in the data and have gaps between the upper
limits of one class and the lower limit of the next class.
In Example*, the GFD contains four classes:
1 – 25, 26 – 50, 51 – 75, and 76 – 100
Class boundaries: Separate one class in a grouped frequency
distribution from the other. The boundary has one more decimal place
than the raw data.
•There is no gap between the upper boundaries of one class and the
lower boundaries of the succeeding class.
•Obtained by subtracting half of the unit of measurement (u) from the
lower limits and by adding ½ (u) on the upper limits of a class. U can
assume values 1, 0.1, 0.01, 0.001……
i.e UCBi = UCLi + ½ (u)
LCBi = LCLi - ½ (u)
Where UCBi = Upper Class Boundaries and
LCBi = Lower Class Boundaries
ii. Class Frequency (or Simply Frequency):
refers to the number of observations
corresponding to a class.
In Example * The class frequency of the 1st, 2nd,
3rd, & 4th classes are respectively 3, 10, 18 and 6.
Note: The unit of measurement (u) is the gap between any two
successive classes. i.e
u = lower limit of a class – upper limit of the preceding class.
In Example *, consider the 2nd class, 26 – 50, since u = 26 – 25 = 1,
LCL2 = 26 UCL2 = 50
LCB2 = 26 - ½(1) = 25.5 UCB2 = 50 + ½(1) =50.5
UCL1 = LCL1 + cw – u,
HISTOGRAM
• The class boundaries are marked along the x – axis and the class
frequencies along the y – axis.
Histogram
20
15
15
12
10
Frequency
10
4 4
5 3
2
Class width
FREQUENCY POLYGON
• It is a line graph of frequency distribution.
14
12
F
r 10
e
q
u 8
e
n
c 6
y
0
9.5 19.5 29.5 39.5 49.5 59.5 69.5 79.5 89.5
Class mark
CUMULATIVE FREQUENCY CURVE, (OGIVE)
Cumulative Frequency
The Less than Ogive The More than Ogive
60 60
50
Cumulative
50
Frequency
40 40
30 30
20 20
10 10
0 0
14.5 24.5 34.5 44.5 54.5 64.5 74.5 84.5 14.5 24.5 34.5 44.5 54.5 64.5 74.5 84.5
35
30 30
25 25
Values
20 20
15 15
10 10 10
5
0
1986 1987 1988 1989 1990 1991
Year
VERTICAL LINE GRAPH
• Is a graphical representation of discrete data and
frequencies.
• Vertical solid lines are used to indicate the
frequencies.
• Example . Draw a vertical line graph for the
following data Family A B C D E
Number of children 2 1 5 4 3
BAR CHART (BAR DIAGRAM)
• Histogram, Frequency polygon, ogives are
used for data having an interval or ratio
level of measurement.
• Bar chart is a series of equally spaced bars
of uniform width where the height (length)
of a bar represents the frequency
corresponding with a category.
• Bars may be drawn horizontally or
vertically. Vertical bar graphs are
preferred as they allow comparison with
other bars.
• Example: Revenue (in millions of Birr) of
company x from 1980 to 1982 is given
below
Year Revenue Year Maize Wheat
1980 50 1980 40 80
1981 150 1981 20 60
1982 200 1982 60 100
150 Number of 60
quintals 40
40 maize
100 20
20 wheat
50 0
1980 1981 1982
0
1980 1981 1982 Year
year
SUBDIVIDED BAR CHART Example : percentage bar chart
Year Wheat Maize
Year % of Wheat Production % of Maize
1980 150 150
Production
1981 300 200 1980 150/300 100 = 50 150/300 100 = 50
The number of quintals of wheat and 1982 350/450 100 = 78 100/450 100 = 22
maize produced by country X Percentage of wheat and maize production from 1980-1982
Percentage produced
100%
600 90% 22
80%
Number of quintals
40
500 50
70%
400 200 100 60% wheat
Maize
50%
300 40% 78 maize
200 150 Wheat 30% 60
350 50
300 20%
100 10%
150
0 0%
1980 1981 1982 1980 1981 1982
Year
Year
PIE CHART
• A pie chart is a circle that is divided in to sections or
according to the percentage of frequencies in each
category of the distribution.
• Example: The monthly expenditure of a certain family is
given below.
Food
300
350
House rent
Clothing
100 Misc.
250
PICTOGRAPH (PICTOGRAM)
• A pictograph is a graph that uses symbols or pictures
to represent data.
• Example : In comparing the population of a country
from 1990 to 1992, we simply draw pictures of people
where each picture may represent 1000,000 people.