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SOFT DRINK EXAMPLE FOLLOW UP 2. Pie Charts Useful with relative frequency and percent frequency only. MUST SHOW PARTS OF A WHOLE! Often misused in practice. Correct: 27% 22% 21% 21% 1% 8% Impact of Technology on Golf Golf BallClub headmaterialShaft materialClub head sizeShaft lengthDon't know
OIS 2340 –Business Statistics Chapters 1 & 2 5 Incorrect: SOFT DRINK EXAMPLE FOLLOW UP. Summarizing QUANTITATIVE Data Tabular Summaries1. Frequency Distribution Classes must be mutually exclusive(nonoverlapping). Classes must be all-inclusiveClasses should be equal width (if possible). There should be no empty classes (if possible). Creation a)Determine the number of classes (bins) you will need. . Rule of Thumb…Between 5 and 20 Classesb)Determine the width of each class (bin). c)Determine the class (bin) boundaries. d)Determine the frequency for each class (bin). AUDIT TIMES EXAMPLE \ $5,410 $5,900 $6,320 $7,143 Funding Per Student Lewis and ClarkCollegeBoise StateUniversityIdaho StateUniversityUniversity of Idaho
OIS 2340 –Business Statistics Chapters 1 & 2 6 2. Relative Frequency and Percent Frequency Distributions Shows the proportionor percentageof items in each of several categories or classes. Relative Frequency= Frequency of a Class ÷ n, where nis the number of observations. Percent Frequency= Relative Frequency x 100. Useful for comparing similar sets of data with different sample sizes. AUDIT TIMES FOLLOW UP 3. Cumulative Frequency Distribution Uses the same classes as a Frequency or Percent Frequency Distribution. Shows the number of data points with values less than or equal to the upper class limitof each class. AUDIT TIMES FOLLOW UP 4. Cumulative Relative Frequency and Cumulative Percent Frequency Distributions Used same as Cumulative Frequency, but using the ratio or percent frequencies instead.