Business Statistics, 4e

by Ken Black

Discrete Distributions

Chapter 2
Charts
& Graphs

Business Statistics, 4e, by Ken Black. 2003

2-1

Learning Objectives
Recognize the difference between
grouped and ungrouped data
Construct a frequency distribution
Construct a histogram, a frequency
polygon, an ogive, a pie chart, a stem
and leaf plot, a Pareto chart, and a
scatter plot

Business Statistics, 4e, by Ken Black. 2003

2-2

Ungrouped Versus Grouped

Data
Ungrouped data
have not been summarized in any way
are also called raw data

Grouped data
have been organized into a frequency
distribution

Business Statistics, 4e, by Ken Black. 2003

2-3

Example of Ungrouped Data

42

26

32

34

57

30

58

37

50

30

53

40

30

47

49

50

40

32

31

40

52

28

23

35

25

30

36

32

26

50

55

30

58

64

52

49

33

43

46

32

61

31

30

40

60

74

37

29

43

54

Ages of a Sample of
Managers from
Urban Child Care
Centers in the
United States

Business Statistics, 4e, by Ken Black. 2003

2-4

Frequency Distribution of Child

Care Managers Ages
Class Interval
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80

Frequency
6
18
11
11
3
1

Business Statistics, 4e, by Ken Black. 2003

2-5

Data Range
42

26

32

34

57

30

58

37

50

30

53

40

30

47

49

50

40

32

31

40

52

28

23

35

25

30

36

32

26

50

55

30

58

64

52

49

33

43

46

32

61

31

30

40

60

74

37

29

43

54

Range = Largest - Smallest

= 74 - 23
= 51

Smallest
Largest

Business Statistics, 4e, by Ken Black. 2003

2-6

Number of Classes and Class Width

The number of classes should be between 5 and 15.
Fewer than 5 classes cause excessive summarization.
More than 15 classes leave too much detail.

Class Width
Divide the range by the number of classes for an
approximate class width
Round up to a convenient number

51
Approximate Class Width = = 8.5
6
Class Width = 10
Business Statistics, 4e, by Ken Black. 2003

2-7

Class Midpoint
beginning class endpoint + ending class endpoint
Class Midpoint =
2
30 + 40
=
2
= 35
1
Class Midpoint = class beginning point + class width
2
1
= 30 + 10
2
= 35

Business Statistics, 4e, by Ken Black. 2003

2-8

Relative Frequency
Class Interval
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80
Total

Relative
Frequency
Frequency
6
.12
6
18
.36

50
11
.22
18.22
11

50
3
.06
1
.02
50
1.00

Business Statistics, 4e, by Ken Black. 2003

2-9

Cumulative Frequency
Class Interval
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80
Total

Cumulative
Frequency
6
18
11
11
3
1
50

Frequency
6
18 + 6 24
11 + 24 35
46
49
50

Business Statistics, 4e, by Ken Black. 2003

2-10

Class Midpoints, Relative Frequencies,

and Cumulative Frequencies
Relative
Cumulative
Class Interval Frequency Midpoint Frequency Frequency
20-under 30
6
25
.12
6
30-under 40
18
35
.36
24
40-under 50
11
45
.22
35
50-under 60
11
55
.22
46
60-under 70
3
65
.06
49
70-under 80
1
75
.02
50
Total
50
1.00
Business Statistics, 4e, by Ken Black. 2003

2-11

Cumulative Relative Frequencies

Cumulative
Relative Cumulative
Relative
Class Interval Frequency Frequency Frequency Frequency
20-under 30
6
.12
6
.12
30-under 40
18
.36
24
.48
40-under 50
11
.22
35
.70
50-under 60
11
.22
46
.92
60-under 70
3
.06
49
.98
70-under 80
1
.02
50
1.00
Total
50
1.00

Business Statistics, 4e, by Ken Black. 2003

2-12

Common Statistical Graphs

Histogram -- vertical bar chart of frequencies

Frequency Polygon -- line graph of frequencies
Ogive -- line graph of cumulative frequencies
Pie Chart -- proportional representation for
categories of a whole
Stem and Leaf Plot
Pareto Chart
Scatter Plot
Business Statistics, 4e, by Ken Black. 2003

2-13

10
0

6
18
11
11
3
1

Frequency

Class Interval
Frequency
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80

20

Histogram

10 20 30 40 50 60 70 80
Years

Business Statistics, 4e, by Ken Black. 2003

2-14

10
0

Frequency

Class Interval Frequency

20-under 30
6
30-under 40
18
40-under 50
11
50-under 60
11
60-under 70
3
70-under 80
1

20

Histogram Construction

10 20 30 40 50 60 70 80
Years

Business Statistics, 4e, by Ken Black. 2003

2-15

10
0

Frequency

Class Interval Frequency

20-under 30
6
30-under 40
18
40-under 50
11
50-under 60
11
60-under 70
3
70-under 80
1

20

Frequency Polygon

10 20 30 40 50 60 70 80
Years

Business Statistics, 4e, by Ken Black. 2003

2-16

40
20
0

Frequency

Class Interval
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80

Cumulative
Frequency
6
24
35
46
49
50

60

Ogive

10

20

30

40

50

60

70

Years

Business Statistics, 4e, by Ken Black. 2003

2-17

80

Cumulative
Relative
Class Interval
Frequency
20-under 30
.12
30-under 40
.48
40-under 50
.70
50-under 60
.92
60-under 70
.98
70-under 80
1.00

Cumulative Relative Frequency

Relative Frequency Ogive

1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
0

10

20

30

40

50

60

70

Years

Business Statistics, 4e, by Ken Black. 2003

2-18

80

Complaints by Amtrak Passengers

COMPLAINT

NUMBER

PROPORTION

DEGREES

Stations, etc.

28,000

.40

144.0

Train
Performance
Equipment

14,700

.21

75.6

10,500

.15

50.4

Personnel

9,800

.14

50.6

Schedules,
etc.
Total

7,000

.10

36.0

70,000

1.00

360.0

Business Statistics, 4e, by Ken Black. 2003

2-19

Complaints by Amtrak Passengers

Personnel
14%

Schedules,
Etc.
10%

Equipment
15%

Train
Performance
21%

Stations, Etc.
40%

Business Statistics, 4e, by Ken Black. 2003

2-20

Second Quarter
Truck
Production in
the U.S.
(Hypothetical
values)

Company

2d Quarter
Truck
Production

357,411

354,936

160,997

34,099

12,747
920,190

Totals

Business Statistics, 4e, by Ken Black. 2003

2-21

Second Quarter
U.S. Truck Production
17%
4%
1%

39%
39%

Business Statistics, 4e, by Ken Black. 2003

2-22

Pie Chart Calculations for Company A

Company
A
B
C

357, 411
=
920,190

2d Quarter
Truck
Production

Degrees

357,411

.388

140

354,936

.386

139

160,997

.175

63

34,099

12,747
920,190

Totals

Proportion

.388 .037
360 =
.014
1.000

Business Statistics, 4e, by Ken Black. 2003

13
5
360

2-23

Safety Examination Scores

for Plant Trainees
Raw Data

Stem

Leaf

86

77

91

60

55

76

92

47

88

67

23

59

72

75

83

79

569

07788

77

68

82

97

89

81

75

74

39

67

0245567789

79

83

70

78

91

11233689

68

49

56

94

81

11247

Business Statistics, 4e, by Ken Black. 2003

2-24

Construction of Stem and Leaf Plot

Raw Data
86

77

91

60

76

92

47

88

23

59

72

75

77

68

82

97

81

75

74

39

79

83

70

68

49

56

Stem

94
Leaf

55

67

79

569

07788

67

0245567789

91

11233689

81

11247

Stem

Stem
78

Leaf

83
89

Leaf

Business Statistics, 4e, by Ken Black. 2003

2-25

Frequency

Pareto Chart
100

100%

90

90%

80

80%

70

70%

60

60%

50

50%

40

40%

30

30%

20

20%

10

10%

0%
Poor
Wiring

Short in
Coil

Defective
Plug

Other

Business Statistics, 4e, by Ken Black. 2003

2-26

Scatter Plot

Registered Vehicles
(1000's)

Gasoline Sales (1000's

of Gallons)

60

15

120

90

15

140

60

Business Statistics, 4e, by Ken Black. 2003

2-27