Chap 002 Frequency Tables

Describing Data:
Frequency Tables, Frequency

Distributions, and Graphic
Presentation
Chapter 2
McGraw-Hill/Irwin
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES
LO1 Make a frequency table for a set of data.
LO2 Organize data into a bar chart.
LO3 Present a set of data in a pie chart.
LO4 Create a frequency distribution for a
data set.
LO5 Understand a relative frequency
distribution.
LO6 Present data from a frequency
distribution in a histogram or frequency
polygon.
2-2
Describing Data with

Charts, Tables and Graphs
- Example
LO1 Make a frequency

table for a set of data
The Applewood Auto Group (AAG)sells a wide

range of vehicles through its four dealerships.
Ms. Kathryn Ball, a member of the senior
management team at AAG, is responsible for
tracking and analyzing vehicle sales and the
profitability of those vehicles. Kathryn would
like to summarize the profit earned on the
vehicles sold with tables, charts, and graphs
that she would review monthly. She wants to
know the profit per vehicle sold, as well as the
lowest and highest amount of profit. She is
also interested in describing the
demographics of the buyers. What are their
ages? How many vehicles have they
previously purchased from one of the
Applewood dealerships? What type of vehicle
did they purchase? Partial data for 180
customers are shown on the table on the right.
2-3
LO2
Frequency Table
FREQUENCY TABLE A grouping of qualitative data into
mutually exclusive classes showing the number of
observations in each class.
TABLE 21 Frequency Table for Vehicles Sold Last Month

at Applewood Auto Group by Location
2-4
Bar Charts
LO2 Organize data into a

bar chart
BAR CHART A graph in which the classes are reported on the

horizontal axis and the class frequencies on the vertical axis. The
class frequencies are proportional to the heights of the bars.
2-5
Pie Charts
LO3 Present a set of data

in a pie chart.
PIE CHART A chart that shows the proportion or percent

that each class represents of the total number of
frequencies.
2-6
Pie Chart Using Excel
LO3
2-7
Frequency Distribution
LO4 Create a frequency

distribution for a data set.
FREQUENCY DISTRIBUTION A grouping of data into

mutually exclusive classes showing the number of
observations in each class.
TABLE 21 Frequency Table for Vehicles Sold Last Month
at Applewood Auto Group by Location
2-8
LO2 and LO3
Bar Chart and Pie Chart Example

SkiLodges.com is test marketing its
new website and is interested in how
easy its Web page design is to
navigate. It randomly selected 200
regular Internet users and asked
them to perform a search task on the
Web page. Each person was asked
to rate the relative ease of navigation
as poor, good, excellent, or
awesome. The results are shown in
the table on the right.
1. What type of measurement scale is
used for ease of navigation?
2. Draw a bar chart for the survey
results.
3. Draw a pie chart for the survey
results.
2-9
Bar Chart and Pie Chart

Example Ski
Lodges.Com
1. What type of
scale is used
navigation?
2. Draw a bar chart
results.
3. Draw a pie chart
results.
LO2 and LO3
measurement
for ease of
for the survey
for the survey
2-10
LO5 Understand a relative

frequency distribution.
Relative Class Frequencies
Class frequencies can be converted to relative class

frequencies to show the fraction of the total number
of observations in each class.
A relative frequency captures the relationship between
a class total and the total number of observations.
2-11
LO5
Frequency Distribution
Class interval: The class
interval is obtained by
subtracting the lower limit
of a class from the lower
limit of the next class.
Class frequency: The
number of observations in
each class.
Class midpoint: A point
that divides a class into
two equal parts. This is
the average of the upper
and lower class limits.
2-12
EXAMPLE Creating a
Frequency Distribution Table
LO6 Present data from a

frequency distribution in a
histogram or frequency polygon.
Kathryn Ball of the Applewood Auto

Group wants to develop tables, charts,
and graphs to show the typical profit
for each sale. Table 24 reports the
profit on each of the 180 vehicles sold
last month at the four Applewood
locations.
What is the typical profit on each
sale?
What is the largest profit on any
sale?
What is the lowest profit on any
sale?
Around what value did the profits
tend to cluster?
2-13
Constructing a Frequency Table - Example
LO6
Step 1: Decide on the number of classes.

A useful recipe to determine the number of classes (k) is the 2 to the
k rule. such that 2k > n.
There were 180 vehicles sold, so n = 180. If we try k = 7, then 27 = 128,
somewhat less than 180. Hence, 7 is not enough classes. If we let k = 8, then
28 = 256, which is greater than 180. So the recommended number of classes
is 8.
Step 2: Determine the class interval or width.

The formula is: i (H-L)/k where i is the class interval, H is the
highest observed value, L is the lowest observed value, and k is the
number of classes.
Round up to some convenient number, such as a multiple of 10 or 100.

Use a class width of $400
2-14
Constructing a Frequency Table - Example
LO6
Step 3: Set the individual class limits
2-15
LO6
Constructing a Frequency Table
Step 4: Tally the

vehicle profits into
the classes.
Step 5: Count the

number of items in
each class.
2-16
LO6
Relative Frequency Distribution

To convert a frequency distribution to a relative frequency
distribution, each of the class frequencies is divided by the total
number of observations.
TABLE 28 Relative Frequency Distribution of Profit for Vehicles Sold Last Month at
Applewood Auto Group
2-17
LO6
Graphic Presentation of a Frequency

Distribution
The three commonly
used graphic forms are:
Histograms
Frequency polygons
Cumulative frequency
distributions
2-18
LO6
Histogram
HISTOGRAM A graph in which the classes are marked on the
horizontal axis and the class frequencies on the vertical axis. The
class frequencies are represented by the heights of the bars and the
bars are drawn adjacent to each other.
2-19
LO6
Histogram Using Excel
2-20
Frequency
Polygon
A frequency polygon,
similar to a histogram,
also shows the shape
of a distribution
It consists of line
segments connecting
the class midpoints of
the class frequencies.
LO6
2-21
LO6
Histogram Versus Frequency Polygon
Both provide a quick picture

of the main characteristics of
the data (highs, lows, points
of concentration, etc.)
Advantage of the histogram
it depicts each class as a
rectangle, with the height of
the rectangular bar
representing the number in
each class.
Advantage of the frequency
polygon - it allows us to
compare directly two or more
frequency distributions.
2-22
Cumulative Frequency
Distribution
LO6
2-23
LO6
Cumulative Frequency Distribution
2-24

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Describing Data:

Frequency Tables, Frequency

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Describing Data with

LO1 Make a frequency

The Applewood Auto Group (AAG)sells a wide

TABLE 21 Frequency Table for Vehicles Sold Last Month

LO2 Organize data into a

BAR CHART A graph in which the classes are reported on the

LO3 Present a set of data

PIE CHART A chart that shows the proportion or percent

Pie Chart Using Excel

LO4 Create a frequency

FREQUENCY DISTRIBUTION A grouping of data into

LO2 and LO3

Bar Chart and Pie Chart Example

Bar Chart and Pie Chart

LO2 and LO3

LO5 Understand a relative

Relative Class Frequencies

Class frequencies can be converted to relative class

LO6 Present data from a

Kathryn Ball of the Applewood Auto

Constructing a Frequency Table - Example

Step 1: Decide on the number of classes.

Step 2: Determine the class interval or width.

Round up to some convenient number, such as a multiple of 10 or 100.

Constructing a Frequency Table - Example

Step 3: Set the individual class limits

Constructing a Frequency Table

Step 4: Tally the

Step 5: Count the

Relative Frequency Distribution

Graphic Presentation of a Frequency

Histogram Using Excel

Histogram Versus Frequency Polygon

Both provide a quick picture

Cumulative Frequency Distribution

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