CHAPTER 2:

Visual Description
of Data
Business Mathematics 41
 Learning Objec-
tives
 Construct a Frequency Distribution and a histogram

 Construct relative and cumulative frequency distributions

 Construct a stem-and-leaf diagram to represent data

 Visually represent data by using graphs and charts

 Construct a dot plot and scatter diagram

 Construct contingency tables

 Information vs.
Data
 Data – raw and unorganized fact that required to be processed to make it mean-
ingful.

 Information – set of data which is processed in a meaningful way according to

a given requirement.
Data Information
 Raw Data
 Raw data have not been manipulated or treated in any way beyond
their original collection.

 The frequency distribution is a table that divides the data values

into classes and shows the number of observed values that fall into
each class.

 The histogram describes a frequency distribution by using a series of

adjacent rectangles, each of which has a length that is proportional to
the frequency of the observations within the range of values it repre-
sents.
Ex Frequency Distribution
Part A of the table below lists the raw data consisting of measured speeds (mph) of 72vehicles

am
along a section of highway. If we want to learn more from this information by visually summa-
rizing it, one of the ways is to construct a frequency distribution like the one shown in part B
of the table.

ple
1
 Key Terms
 Class – each category of the frequency distribution.

 Frequency – the number of data values falling within each class.

 Class Limits – the boundaries for each class. These determine which data values are as-

signed to that class.

 Class Interval – the width of each class. This is the difference the lower limit of the class

and the lower limit of the next higher class.

 Class Mark – the midpoint of each class. This midway between the upper and lower class

limits.
 How to make a Frequency
Distribution
Step 1: Find the range of the data

Step 2: Decide on the number of classes using 2 to the k rule

Step 3: Determine the class interval

Step 4: Set the individual class limits

Step 5: Tally the raw data

Step 6: Count the number of tallies in each class

 Guidelines for a Frequency
Distribution
1. The set of classes must be mutually exclusive.

2. The set of classes must be exhaustive.

3. If possible, the classes should have equal widths.

4. Selecting the number of classes to use is subjective process.

5. Whenever possible, class width should be whole number.

6. If possible, avoid open-end classes.

 Relative and Cumulative
Frequency Distribution
 Relative Frequency Distribution – another useful approach to data ex-
pression is the relative frequency distribution, which describes the
proportion or percentage of data values that fall within each category.

 Cumulative Frequency Distribution – another approach to the fre-

quency distribution is to list the number of observation that are within
or below each of the classes.
Relative and Cumulative
Frequency Distribution
 The Histogram
The histogram describes a frequency distribution by using a series of adjacent rectan-
gles, each of which has a length proportional to either the frequency or the relative fre-
quency of the class it represents.
Frequency Distribution (Number of Motorists in
Each Category) Number of Motorists
30
Number of Motorists 25
20
15
10
5
0
50 55 60 65 70 75 80 85 90
r r r r r r r r r
n de n de n de n de n de n de n de de n de
-u -u -u -u -u -u -u nn -u
-u
45 50 55 60 65 70 75 80 85

Speed (mph)
 Frequency Polygon
The frequency polygon consists of line segments connecting the points formed by the in-
tersections of the class marks with the class frequencies.

Frequency Polygon
30
20
10
0

Series1 Series2 Series3

Series4 Series5 Series6
 Ogive
Related to the frequency polygon is the ogive, a graphical display providing cumulative values for
frequencies, relative frequencies, or percentages. These values can be either “greater than” or “less
than.”
 The Stem-and-Leaf Dis-
play
The stem-and-leaf display, a variant of the frequency distribution, uses a subset of the original digits
as class descriptors. The technique is best explained through a few examples. The raw data are the
numbers of Congressional bills vetoed during the administrations of seven U.S. presidents, from
Johnson to Clinton.
John- Nixon Ford Carter Rea- Bush Clinton
son gan
Vetoes 30 43 66 31 78 44 38
In Stem-and-Leaf terms, we could describe these data as follows:

Stem (10’s Digit) Leaf (1’s digit)

3|018 (represents 30, 31, and 38)
4|34 (represents 43, and 44)
5| (no data values in the 50’s)
6|6 (represents 66)
7|8 (represent 78)
 The dot plot
The dot plot displays each data value as a dot and allows us to readily see the shape of the distribu-
tion as well as the high and low values.
 The Bar Graph
The bar chart represents frequencies according to the relative lengths of a set of rectangles, but it differs in
two respects from the histogram:
(1) the histogram is used in representing quantitative data, while the bar chart represents qualitative data; and
(2) adjacent rectangles in the histogram share a common side, while those in the bar chart have a gap be-
tween them.
 The Line Graph
The line graph is capable of simultaneously showing values of two quantitative variables (y, or vertical axis,
and x, or horizontal axis); it consists of linear segments connecting points observed or measured for each
variable.
 The Pie Chart
The pie chart is a circular display divided into sections based on either the number of observations within or
the relative values of the segments.
 The Pictograph
the pictogram can describe frequencies or other values of interest. Figure 2.2 is an example of this method; it
was used by Panamco to describe soft drink sales in Central America over a 3-year period. In the diagram,
each truck represents about 12.5 million cases of soft drink products.