Module 2 Statistics

STATISTICS FOR BUSINESS RESEARCH
Module 2. Organizing and Presenting Data through Tables
Learning Outcomes
Studying this module should provide you with the statistics knowledge needed to:
 Comprehend the terms involved in table construction.

 Label any presentation of data.
 Construct frequency distribution tables for both qualitative and quantitative data;
 Graphical presentation of the Frequency Distribution
Frequency distribution – shows the frequency, or number of occurrences, in each of several

categories. Frequency distributions are used to summarize large volumes of data values. When the raw data
are measured on a quantitative scale, either interval or ratio, categories or classes must be designed for the
data values before a frequency distribution can be formulated. Procedure in putting raw data into a
frequency distribution table contains class intervals and the frequencies, as well as the class boundaries,
class marks, and cumulative and relative frequencies.
Illustration. Construct a frequency distribution table of score obtained by a class of 44 students. They were
given a test made up of 100 problems which resulted to the following scores:
66 80 57 94 76 48 48 61 69 86 65
64 60 63 68 41 46 76 84 68 67 68
27 59 78 59 72 90 67 68 54 62 64
72 61 67 39 57 57 75 69 61 44 65
1. Decide on the number of class intervals. log 44
1. i=1+ = 6.46 or 6
𝑙𝑜𝑔2
Usually this is given in a problem or by the
teacher; but if not, then use Sturges’ Formula:
Ideal number of class intervals (i) 2. Range = 94-27= 67
log 𝑛
i = 1 + log 2 (round the usual way)
𝑅𝑎𝑛𝑔𝑒 67
3. c= = = 11.17 = 12
𝑖 6
2. Determine the range (highest measurement
4. 27
minus the lowest measurement).
39
51
3. Divide the range by the number of class 63
intervals to estimate the approximate class width 75
c (round upward). 87
4. List the lower-class limit of the lowest class 5. 27 –38 1

interval (usually the lowest measurement) and 39 – 50 6
then add the class width in order to obtain the 51 – 62 11
succeeding lower-class limits. 63 – 74 17
75 – 86 7
87 – 98 2
5. List the upper-class limit of each class interval.
Note: the highest score need not be equal to the
highest upper boundary. What is important is that
the highest score must be in the class interval.
6. Tally the frequencies for each class and sum them 6. 27 – 38 = l =1

up
39 – 50 = lllll – l = 6
7. Add the sums of the frequencies.
Note: the result should equal the number of 51 – 62 = lllll-lllll-l = 11
observations.
63 – 74 = lllll-lllll-lllll-ll = 17
75 – 86 = lllll-ll = 7
87 – 98 = ll = 2
7. 1 + 6 + 11 + 17 + 7 + 2 = 44
Frequency Distribution Table
Below is the frequency distribution of the score of 44 students in a 100-items test. It is an expanded
frequency distribution table that includes the class boundaries, class mark, relative frequency, less-
than cumulative frequency, and the greater than cumulative frequency.
Class F Class Class Mark rf% <CF >CF

Interval Boundaries
27 - 38 1 26.5 – 38.5 32.5 2.27% 1 44
39 - 50 6 38.5 – 50.5 44.5 13.64% 7 43
51 - 62 11 50.5 – 62.5 56.5 25% 18 37
63 - 74 17 62.5 – 74.5 68.5 38.64% 35 26
75 - 86 7 74.5 – 86.5 80.5 15.91% 42 9
87 – 98 2 86.5 – 98.5 92.5 4.54% 44 2
Total 44 100%
 Class boundaries are the numbers used to separate classes. The size of the gap between classes is
the difference between the upper-class limit of one class and the lower-class limit of the next class.
Let V be the gap between lower and upper limits of any or the first two consecutive class intervals,
divided by two, that is,
𝑙𝑜𝑤𝑒𝑟 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑠𝑒𝑐𝑜𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙−𝑢𝑝𝑝𝑒𝑟 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙

V=
2
Then lower boundary = Lower limit – V

And upper boundary = Upper limit + V
39−38
In the example, V = = 0.5
2
Hence, the first lower boundary = 27 – 0.5 = 26.5

And the first upper boundary = 38 + 0.5 = 38.5
 The class midpoint (or class mark) is a specific point in the center of the bins (categories) in a
frequency distribution table.
 The relative frequency of an event is defined as the number of times that the event occurs during
experimental trials, divided by the total number of trials conducted.
 Less than cumulative frequency distribution is obtained by adding successively the frequencies of
all the previous classes including the class against which it is written.
 Similarly, cumulative frequency of greater than type for a particular value of the variable is obtained
by cumulating or adding the frequencies of all values greater than that value, starting from the
frequency that particular value, i.e., by adding its frequency to the frequencies of all the values
greater than.
Graphical presentation of the Frequency Distribution
 A histogram consists of a set of rectangles having bases on a horizontal axis which centers on the
class marks. The base widths correspond to the class boundaries rectangles correspond to the class
frequencies.
What is the purpose of histogram graph?
It can provide information on the degree of variation of the data and show the distribution pattern
of the data by bar graphing the number of units in each class or category. A histogram takes
continuous (measured) data like temperature, time, and weight, for example, and displays its
distribution.
 frequency polygons are constructed by plotting class frequencies against class marks and
connecting the consecutive points by a straight line
Frequency polygons are a graphical device for understanding the shapes of distributions. They
serve the same purpose as histograms but are especially helpful for comparing sets of data.
 Ogive is obtained by plotting the cumulative frequency by connecting points of intersection

between the class boundaries, versus cumulative frequencies “less than” or more than”
An ogive (oh-jive), sometimes called a cumulative frequency polygon, is a type of
frequency polygon that shows cumulative frequencies. In other words, the cumulative percent are
added on the graph from left to right. An ogive graph plots cumulative frequency on the y-axis and
class boundaries along the x-axis.
Summary
 Frequency distribution in statistics is a representation that displays the number of observations

within a given interval.
 The representation of a frequency distribution can be graphical or tabular so that it is easier to
understand.
 Frequency distributions are particularly useful for normal distributions, which show the
observations of probabilities divided among standard deviations.
 In finance, traders use frequency distributions to take note of price action and identify trends.
 Data presentation is defined as the process of using various graphical formats to visually represent
the relationship between two or more data sets so that an informed decision can be made based on
them.
 A two dimensional graphical representation of a continuous frequency distribution is called a
histogram. In histogram, the bars are placed continuously side by side with no gap between adjacent
bars. That is, in histogram rectangles are erected on the class intervals of the distribution
Activity:
Using the Frequency Distribution Table above, construct histogram, frequency polygon and ogive graphs
Source:
https://www.investopedia.com/terms/f/frequencydistribution.asp
https://www.vedantu.com/commerce/presentation-of-data
Graphical representation of the Frequency Distribution

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STATISTICS FOR BUSINESS RESEARCH

Module 2. Organizing and Presenting Data through Tables

 Comprehend the terms involved in table construction.

Frequency distribution – shows the frequency, or number of occurrences, in each of several

4. List the lower-class limit of the lowest class 5. 27 –38 1

6. Tally the frequencies for each class and sum them 6. 27 – 38 = l =1

Class F Class Class Mark rf% <CF >CF

27 - 38 1 26.5 – 38.5 32.5 2.27% 1 44

39 - 50 6 38.5 – 50.5 44.5 13.64% 7 43

51 - 62 11 50.5 – 62.5 56.5 25% 18 37

63 - 74 17 62.5 – 74.5 68.5 38.64% 35 26

75 - 86 7 74.5 – 86.5 80.5 15.91% 42 9

87 – 98 2 86.5 – 98.5 92.5 4.54% 44 2

𝑙𝑜𝑤𝑒𝑟 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑠𝑒𝑐𝑜𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙−𝑢𝑝𝑝𝑒𝑟 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙

Then lower boundary = Lower limit – V

Hence, the first lower boundary = 27 – 0.5 = 26.5

 Ogive is obtained by plotting the cumulative frequency by connecting points of intersection

 Frequency distribution in statistics is a representation that displays the number of observations

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