BBA 240

Quantitative Methods

Describing Data: Graphical

By Handema M.
 Section Goals

After completing this section, you should be

able to:
 Construct a frequency distribution both manually and with
a computer
 Construct and interpret a histogram
 Create and interpret bar charts, pie charts, and stem-and-
leaf diagrams
 Present and interpret data in line charts and scatter
diagrams
 Graphical
Presentation of Data

 Data in raw form are usually not easy to use

for decision making
 Some type of organization is needed
 Table

 Graph

 The type of graph to use depends on the

variable being summarized
 Graphical
Presentation of Data
(continued)
 Techniques reviewed in this section:

Categorical Numerical
Variables Variables

• Frequency distribution • Line chart

• Bar chart • Frequency distribution
• Pie chart • Histogram and ogive
• Pareto diagram • Stem-and-leaf display
• Scatter plot
 Tables and Graphs for
Categorical Variables
Categorical
Data

Tabulating Data Graphing Data

Frequency
Distribution Bar Pie Pareto
Table Chart Chart Diagram
 The Frequency
Distribution Table
Summarize data by category

Example: Hospital Patients by Unit

Hospital Unit Number of Patients

Cardiac Care 1,052

Emergency 2,245
Intensive Care 340
Maternity 552
Surgery 4,630
(Variables are
categorical)
 Bar and Pie Charts

 Bar charts and Pie charts are often used

for qualitative (category) data

 Height of bar or size of pie slice shows the

frequency or percentage for each
category
 Bar Chart Example

Hospital Number
Unit of Patients

Cardiac Care 1,052

Emergency 2,245 Hospital Patients by Unit
5000
Intensive Care 340
Maternity 552
patients per year
Number of 4000
Surgery 4,630
3000

2000

1000

0
Cardiac

Surgery
Emergency

Maternity
Intensive
Care

Care
 Pie Chart Example

Hospital Number % of
Unit of Patients Total
Hospital Patients by Unit
Cardiac Care 1,052 11.93
Emergency 2,245 25.46 Cardiac Care
12%
Intensive Care 340 3.86
Maternity 552 6.26
Surgery 4,630 52.50

Emergency
Surgery 25%
53%

Intensive Care
(Percentages 4%
are rounded to Maternity
the nearest 6%
percent)
 Pareto Diagram

 Used to portray categorical data

 A bar chart, where categories are shown in
descending order of frequency
 A cumulative polygon is often shown in the
same graph
 Used to separate the “vital few” from the “trivial
many”
 Pareto Diagram Example

Example: 400 defective items are examined

for cause of defect:
Source of
Manufacturing Error Number of defects
Bad Weld 34
Poor Alignment 223
Missing Part 25
Paint Flaw 78
Electrical Short 19
Cracked case 21
Total 400
 Pareto Diagram Example
(continued)

Step 1: Sort by defect cause, in descending order

Step 2: Determine % in each category

Source of
Manufacturing Error Number of defects % of Total Defects
Poor Alignment 223 55.75
Paint Flaw 78 19.50
Bad Weld 34 8.50
Missing Part 25 6.25
Cracked case 21 5.25
Electrical Short 19 4.75
Total 400 100%
 Pareto Diagram Example
(continued)
Step 3: Show results graphically
Pareto Diagram: Cause of Manufacturing Defect
60% 100%
% of defects in each category

90%

cumulative % (line graph)

50%
80%

70%
(bar graph)

40%

60%

30% 50%

40%

20%
30%

20%
10%

10%

0% 0%
Poor Alignment Paint Flaw Bad Weld Missing Part Cracked case Electrical Short
 Graphs for Time-Series Data
 A line chart (time-series plot) is used to show
the values of a variable over time

 Time is measured on the horizontal axis

 The variable of interest is measured on the

vertical axis
 Line Chart Example

Magazine Subscriptions by Year

350

300
Thousands of subscribers

250

200

150

100

50

0
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006
 Graphs to Describe
Numerical Variables
Numerical Data

Frequency Distributions Stem-and-Leaf

and Display
Cumulative Distributions

Histogram Ogive
 Frequency Distributions

What is a Frequency Distribution?

 A frequency distribution is a list or a table …
 containing class groupings (categories or
ranges within which the data fall) ...
 and the corresponding frequencies with which
data fall within each class or category
 Why Use Frequency Distributions?

 A frequency distribution is a way to

summarize data
 The distribution condenses the raw data
into a more useful form...
 and allows for a quick visual interpretation
of the data
 Class Intervals
and Class Boundaries

 Each class grouping has the same width

 Determine the width of each interval by
largest number  smallest number
w  interval width 
number of desired intervals

 Use at least 5 but no more than 15-20 intervals

 Intervals never overlap
 Round up the interval width to get desirable
interval endpoints
 Frequency Distribution Example

Example: A manufacturer of insulation randomly

selects 20 winter days and records the daily
high temperature

24, 35, 17, 21, 24, 37, 26, 46, 58, 30,
32, 13, 12, 38, 41, 43, 44, 27, 53, 27
 Frequency Distribution
Example
(continued)

 Sort raw data in ascending order:

12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

 Find range: 58 - 12 = 46
 Select number of classes: 5 (usually between 5 and 15)
 Compute interval width: 10 (46/5 then round up)

 Determine interval boundaries: 10 but less than 20, 20 but

less than 30, . . . , 60 but less than 70

 Count observations & assign to classes

 Frequency Distribution Example
(continued)
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Relative
Interval Frequency Percentage
Frequency
10 but less than 20 3 .15 15
20 but less than 30 6 .30 30
30 but less than 40 5 .25 25
40 but less than 50 4 .20 20
50 but less than 60 2 .10 10
Total 20 1.00 100
 Histogram

 A graph of the data in a frequency distribution

is called a histogram
 The interval endpoints are shown on the
horizontal axis
 the vertical axis is either frequency, relative
frequency, or percentage
 Bars of the appropriate heights are used to
represent the number of observations within
each class
 Histogram Example

Interval Frequency
Histogram : Daily High Tem perature
10 but less than 20 3
20 but less than 30 6 7 6
30 but less than 40 5
40 but less than 50 4
6 5
50 but less than 60 2 5 4
Frequency

4 3
3 2
2
1 0 0
(No gaps 0
between 0 0 10 10 2020 30 30 40 40 50 50 60 60 70
bars) Temperature in Degrees
 Histograms in Excel

1
Select Data Tab 2
Click on Data Analysis
 Histograms in Excel
(continued)

3
Choose Histogram

(
Input data range and bin
range (bin range is a cell
4 range containing the upper
interval endpoints for each class
grouping)

Select Chart Output

and click “OK”
 Questions for Grouping Data
into Intervals

 1. How wide should each interval be?

(How many classes should be used?)

 2. How should the endpoints of the

intervals be determined?
 Often answered by trial and error, subject to
user judgment
 The goal is to create a distribution that is
neither too "jagged" nor too "blocky”
 Goal is to appropriately show the pattern of
variation in the data
 How Many Class Intervals?
 Many (Narrow class intervals)
 may yield a very jagged 3.5
3
distribution with gaps from 2.5

Frequency
2
empty classes 1.5
1

 Can give a poor indication of 0.5

0

how frequency varies across

4
8
12
16
20
24
28
32
36
40
44
48
52
56
60
More
Temperature
classes
12

 Few (Wide class intervals) 10

Frequency
8

 may compress variation too 6

4

much and yield a blocky 2

0
distribution 0 30 60 More
Temperature

 can obscure important patterns

(X axis labels are upper class endpoints)

of variation.
 The Cumulative
Frequency Distribuiton
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Cumulative Cumulative
Class Frequency Percentage
Frequency Percentage

10 but less than 20 3 15 3 15

20 but less than 30 6 30 9 45
30 but less than 40 5 25 14 70
40 but less than 50 4 20 18 90
50 but less than 60 2 10 20 100
Total 20 100
 The Ogive
Graphing Cumulative Frequencies
Upper
interval Cumulative
Interval endpoint Percentage
Less than 10 10 0
10 but less than 20 20 15
20 but less than 30 30 45 Ogive: Daily High Temperature
30 but less than 40 40 70
40 but less than 50 50 90 100
Cumulative Percentage
50 but less than 60 60 100
80
60
40
20
0
10 20 30 40 50 60
Interval endpoints
 Stem-and-Leaf Diagram

 A simple way to see distribution details in a

data set

METHOD: Separate the sorted data series

into leading digits (the stem) and
the trailing digits (the leaves)
 Example
Data in ordered array:
21, 24, 24, 26, 27, 27, 30, 32, 38, 41

 Here, use the 10’s digit for the stem unit:

Stem Leaf
 21 is shown as 2 1
 38 is shown as 3 8
 Example
(continued)
Data in ordered array:
21, 24, 24, 26, 27, 27, 30, 32, 38, 41

 Completed stem-and-leaf diagram:

Stem Leaves
2 1 4 4 6 7 7
3 0 2 8
4 1
 Using other stem units

 Using the 100’s digit as the stem:

 Round off the 10’s digit to form the leaves

Stem Leaf
 613 would become 6 1
 776 would become 7 8
 ...
 1224 becomes 12 2
 Using other stem units
(continued)

 Using the 100’s digit as the stem:

 The completed stem-and-leaf display:
Data:
Stem Leaves
613, 632, 658, 717, 6 136
722, 750, 776, 827, 7 2258
841, 859, 863, 891, 8 346699
894, 906, 928, 933,
9 13368
955, 982, 1034,
1047,1056, 1140, 10 356
1169, 1224 11 47
12 2
 Relationships Between
Variables

 Graphs illustrated so far have involved only a

single variable
 When two variables exist other techniques are
used:

Categorical Numerical
(Qualitative) (Quantitative)
Variables Variables

Cross tables Scatter plots

 Scatter Diagrams

 Scatter Diagrams are used for paired

observations taken from two
numerical variables

 The Scatter Diagram:

 one variable is measured on the vertical

axis and the other variable is measured

on the horizontal axis
 Scatter Diagram Example

Volume Cost per

Production Volume vs. Cost per Day
per day day
23 125 250
26 140
200
Cost per Day

29 146
150
33 160
38 167 100
42 170 50
50 188
0
55 195
0 10 20 30 40 50 60 70
60 200
Volume per Day
 Types of Relationships

 Linear Relationships

Y Y

X X
 Types of Relationships
(continued)

 Curvilinear Relationships

Y Y

X X
 Types of Relationships
(continued)

 No Relationship

Y Y

X X
 Section Summary

 Data in raw form are usually not easy to use for

decision making -- Some type of organization is
needed:
 Table  Graph
 Techniques reviewed in this chapter:
 Frequency Distributions, Histograms, and Ogives

 Bar Charts and Pie Charts

 Stem and Leaf Diagrams

 Line Charts and Scatter Diagrams

 Scatter Diagrams in Excel

1 Select the Insert tab

2 Select Scatter type from
the Charts section

3 When prompted, enter the data range, desired legend, and

desired destination to complete the scatter diagram
 Cross Tables

 Cross Tables (or contingency tables) list the

number of observations for every combination
of values for two categorical or ordinal
variables

 If there are r categories for the first variable

(rows) and c categories for the second
variable (columns), the table is called an r x c
cross table
 Cross Table Example
 4 x 3 Cross Table for Investment Choices by Investor
(values in K1000’s)
Investment Investor A Investor B Investor C Total
Category
Stocks 46.5 55 27.5 129
Bonds 32.0 44 19.0 95
CD 15.5 20 13.5 49
Savings 16.0 28 7.0 51
Total 110.0 147 67.0 324
 Graphing
Multivariate Categorical Data
(continued)

 Side by side bar charts

C o m p arin g In vesto rs

S a vin g s

CD

B onds

S toc k s

0 10 20 30 40 50 60

In ve s t o r A In ve s t o r B In ve s t o r C
 Side-by-Side Chart Example
 Sales by quarter for three sales territories:
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East 20.4 27.4 59 20.4
West 30.6 38.6 34.6 31.6
North 45.9 46.9 45 43.9

60

50

40
East
30 West
North
20

10

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
 Data Presentation Errors

Goals for effective data presentation:

 Present data to display essential information
 Communicate complex ideas clearly and
accurately
 Avoid distortion that might convey the wrong
message
 Data Presentation Errors
(continued)

 Unequal histogram interval widths

 Compressing or distorting the
vertical axis
 Providing no zero point on the
vertical axis
 Failing to provide a relative basis
in comparing data between
groups
 Section Summary
 Reviewed incomplete information in decision
making
 Introduced key definitions:
 Population vs. Sample
 Parameter vs. Statistic
 Descriptive vs. Inferential statistics
 Described random sampling
 Examined the decision making process
 Section Summary
(continued)
 Reviewed types of data and measurement levels
 Data in raw form are usually not easy to use for decision
making -- Some type of organization is needed:
 Table  Graph

 Techniques reviewed in this chapter:

 Frequency distribution  Line chart
 Bar chart  Frequency distribution
 Pie chart  Histogram and ogive
 Stem-and-leaf display
 Pareto diagram
 Scatter plot
 Cross tables and
side-by-side bar charts
Thank You….