3.

1
Chapter 3. Graphing Interval Data: Outline
1. Describing and Summarizing Interval Data:
Box Plot
Dot Plot
Histogram
Ogive
2. Describing Time Series Data: Index Plot
3. Graphical presentation for the relationship
between two interval variables:
Scatter Plot

MACT 2222: Statistics for Business 3.1

3.2

There are several graphical methods used when

the data are interval (i.e. numeric, non-
categorical).

Common graphical methods to describe interval

data are Box Plots, Dot Plots, Histograms, and
Ogives

Histograms are used to summarize interval

data, as well as to help explain probabilities.
MACT 2222: Statistics for Business 3.2
3.3

Steps in Building a Histogram

1. First, we the interval data to a number of
categories or classes. As a rule of thumb, the
number of classes, m, should be between 5
and 15.
If m < 5, Less than 5, then we would be
summarizing too much and if m > 15, we would
be giving too much details.

Alternatively, we one could use Sturges

formula: m = 1 + 3.3 log (n), where n is the
sample size
MACT 2222: Statistics for Business 3.3
3.4

Steps in Building a Histogram

2. We divide the data into m class of equal width,
whenever possible.
Then each class width becomes
x x
Class Width max min
m
3. Count how many observations fall in each of the
classes. This is called frequencies of the classes.

4. Display the classes and frequencies in a table

as seen by example on next slide.

MACT 2222: Statistics for Business 3.4

3.5

Example 3
As part of a larger study, a long-distance company
wanted to acquire information about the monthly
bills of new subscribers in the first month after
signing with the company.
The companys marketing manager conducted a
survey of 200 new residential subscribers wherein
the first months bills were recorded.
These data are stored in file Xm03-01. The general
manager planned to present his/her findings to
senior executives. What information can be
extracted from these data?
MACT 2222: Statistics for Business 3.5
3.6
Example 3
Here the range of the data is about 120 and if we
decide on m = 8 classes, we have the following
table:
Frequency
Class Limit
Absolute Relative
(0,15] 71 35.5%
(15, 30] 37 18.5%
(30, 45] 13 6.5%
(45,60] 9 4.5%
(60, 75] 10 5%
(75, 90] 18 9%
(90,105] 28 14%
(105,120] 14 7%
Total 200 100%
MACT 2222: Statistics for Business 3.6
3.7

Guidelines for Constructing Frequency Tables

1. Equal size classes whenever possible.

2. Classes are mutually exclusive (disjoint) and

collectively exhaustive: Every one is counted
once and only once.

MACT 2222: Statistics for Business 3.7

3.8
From Table to Histogram
Once we construct a frequency distribution
table, we can construct the corresponding
histogram of the data (and vice verse).

MACT 2222: Statistics for Business 3.8

3.9

Example 3

(18+28+14=60)200 = 30%
about half (71+37=108)
i.e. nearly a third of the phone bills
of the bills are small,
are $90 or more.
i.e. less than $30 There are only a few telephone
bills in the middle range.

MACT 2222: Statistics for Business 3.9

3.10

Shapes of Histogram
Symmetry
A histogram is said to be symmetric if, when we
draw a vertical line down the center of the
histogram, the two sides are identical in shape and
size:
Frequency

Frequency

Frequency
Variable Variable Variable

MACT 2222: Statistics for Business 3.10

3.11

Shapes of Histogram

Skewness
A skewed histogram is one with a long tail
extending to either the right or the left:
Frequency

Frequency
Variable Variable

Positively Skewed Negatively Skewed

MACT 2222: Statistics for Business 3.11

3.12

Shapes of Histogram

Modality
A unimodal histogram is one with a single peak,
while a bimodal histogram is one with two peaks:
Bimodal
Unimodal
Frequency

Frequency
Variable Variable

A modal class is the class with

the largest number of observations

MACT 2222: Statistics for Business 3.12

3.13

Shapes of Histogram
Bell Shape
A special type of symmetric unimodal histogram is
one that is bell shaped:
Many statistical
techniques require that
the population be bell

Frequency
shaped.
Drawing the histogram
helps verify the shape of Variable

the population in Bell Shaped

question.
MACT 2222: Statistics for Business 3.13
3.14
Ogive
Ogive (pronounced Oh-jive) is a graph of a
cumulative frequency distribution. We create an
ogive in three steps
1. From the frequency distribution created earlier,
calculate relative frequencies:
Frequency
Relative Frequency .
n
2. Calculate cumulative relative frequencies by
adding the current class relative frequency to
the previous class cumulative relative
frequency.
3. Graph the cumulative relative frequencies
MACT 2222: Statistics for Business 3.14
3.15

Example 3: Frequency Distribution Table

first class
next class: .355+.185=.540

:
:

last class: .930+.070=1.00

MACT 2222: Statistics for Business 3.15

3.16

Example 3: Ogive

The ogive can be

used to answer
questions like:

What telephone bill

value is at the 50th
percentile?

around $35
MACT 2222: Statistics for Business 3.16
3.17

Describing Time Series Data

Observations measured at the same point in

time are called cross-sectional data.

Observations measured at successive points in

time are called time-series data.

Time-series data graphed on a line chart, which

plots the value of the variable on the vertical
axis against the time periods on the horizontal
axis.
MACT 2222: Statistics for Business 3.17
3.18
Example 4
We recorded the monthly average retail price of
gasoline since 1978. A line chart is used to
describe these data. The chart below shows that
retail prices has an increasing trend with time.

180
160
140
120
Retail Price

100
80
60
40
20
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Time
MACT 2222: Statistics for Business 3.18
3.19

Relationship between Two Qualitative Variables

A cross-classification table (or cross-tabulation
table) is used to describe the relationship
between two qualitative variables.

A cross-classification table lists the frequency of

each combination of the values of the two
variables.

MACT 2222: Statistics for Business 3.19

3.20

Example 5
In a major North American city there are four
competing newspapers: the Post, Globe and Mail,
Sun, and Star.
To help design advertising campaigns, the
advertising managers of the newspapers need to
know which segments of the newspaper market
are reading their papers.
A survey was conducted to analyze the
relationship between newspapers read and
occupation.
MACT 2222: Statistics for Business 3.20
3.21

Example 5 (Contd)
A sample of newspaper readers was asked to
report which newspaper they read:
1 = G&M (Globe and Mail),
2 = Post,
3 = Star, or
4 = Sun,
and to indicate whether they were:
1 = Blue-collar worker,
2 = White-collar worker, or
3 = Professional.
MACT 2222: Statistics for Business 3.21
3.22

Example 5 (Contd)
By counting the number of times each of the 12
combinations occurs, we produced the following
Cross-Classification Table or Contingency Table.

Occupation
Newspaper Blue Collar White Collar Professional Total
G&M 27 29 33 89
Post 18 43 51 112
Star 38 21 22 81
Sun 37 15 20 72
Total 120 108 126 354

MACT 2222: Statistics for Business 3.22

3.23

Example 5 (Contd)
If occupation and newspaper are related, then
there will be differences in the newspapers read
among the occupations. An easy way to see this is
to covert the frequencies in each column to
relative frequencies in each column. That is,
compute the column totals and divide each
frequency by its column total.
Occupation
Newspaper Blue Collar White Collar Professional
G&M 27/120 =.23 29/108 = .27 33/126 = .26
Post 18/120 = .15 43/108 = .40 51/126 = .40
Star 38/120 = .32 21/108 = .19 22/126 = .17
Sun 37/120 = .31 15/108 = .14 20/126 = .16
MACT 2222: Statistics for Business 3.23
3.24

Example 5 (Contd)
Interpretation: The relative frequencies in the
columns 2 & 3 are similar, but there are large
differences between columns 1 and 2 and
between columns 1 and 3.

similar

dissimilar
MACT 2222: Statistics for Business 3.24
3.25

Example 5 (Contd)
This tells us that blue collar workers tend to read
different newspapers from both white collar
workers and professionals and that white collar
and professionals are quite similar in their
newspaper choice.

similar

dissimilar
MACT 2222: Statistics for Business 3.25
3.26

Graphing the Relationship Between Two

Qualitative Variables
Use the data from the cross-classification table to
create bar charts.
Professionals tend to read the Globe & Mail more
than twice as often as the Star or Sun.
60
51
50 43
40 38 37
Frequency

33
29 G&M
30 27
21 22 20 Post
20 18
15 Star
10 Sun
0
Blue Collar White Collar Professional
Occupations
MACT 2222: Statistics for Business 3.26
3.27

Graphing the Relationship Between Two Interval

Variables
To explore the relationship between two
interval variables, we employ a Scatter Plot,
which plots two variables against one another.

The independent variable is labeled X and is

usually placed on the horizontal axis, while the
other, dependent variable, Y, is mapped to the
vertical axis.

MACT 2222: Statistics for Business 3.27

3.28

Example 6
A real estate agent wanted to know to what extent
the selling price of a home is related to its size. To
acquire this information he took a sample of 12
homes that had recently sold, recording the price
in thousands of dollars and the size in hundreds of
square feet. These data are listed in the
accompanying table. Use a graphical technique to
describe the relationship between size and price.
Size 23 18 26 20 22 14 33 28 23 20 27 18

Price 315 229 355 261 234 216 308 306 289 204 265 195

MACT 2222: Statistics for Business 3.28

3.29

Example 6
It appears that there is a relationship, that is, the
greater the house size the greater the selling price

MACT 2222: Statistics for Business 3.29

3.30

Patterns of Scatter Diagrams

Linearity and Direction are two concepts we are interested in

Positive Linear Relationship Negative Linear Relationship

Weak or Non-Linear Relationship

MACT 2222: Statistics for Business 3.30

3.31

Summary
Factors That Identify When to Use Frequency
and Relative Frequency Tables, Bar and Pie
Charts:
1. Objective: Describe a single set of data.
2. Data type: Qualitative

Factors That Identify When to Use a Histogram

or Ogive:
1. Objective: Describe a single set of data.
2. Data type: Interval

MACT 2222: Statistics for Business 3.31

3.32
Summary
Factors that Identify When to Use a Cross-
Classification Table:
1. Objective: Describe the relationship between
two variables.
2. Data type: Qualitative

Factors that Identify When to Use a Scatter

Diagram:
1. Objective: Describe the relationship between
two variables.
2. Data type: Interval
MACT 2222: Statistics for Business 3.32
3.33

Summary II

Interval Qualitative
Data Data
Histogram Frequency Tables
Box Plot Bar Chart
Single Set of Data
Dot Plot Pie Charts
Time Series Plot
Relationship Scatter Plot Cross-Classification
Between Table
Two Variables Bar Charts

MACT 2222: Statistics for Business 3.33

3.34

Learning Outcomes

Student is able to:

1. Explain the difference between the different
types of data
2. Select the appropriate tabular and/or
graphical techniques on Interval.
3. Construct the selected tables and/or graphs
using a computer package
4. Interpret the obtained tables and/or graphs.

MACT 2222: Statistics for Business 3.34