Session Goals

After completing this session you should be able

to
• Classify the Data
• Identify the level of measurement
• Distinguish the type of data
• Explain key definitions:
 Ungrouped Data Vs Grouped Data
 Inclusive Vs Exclusive class
• Describe about frequency distribution
2
 Types of Variables
Data

Categorical Numerical

Examples: Discrete Continuous

 Marital Status Examples:
 Gender Examples:
(Defined categories)  Number of online
purchases per  Weight
month  Height
 Number of Children  Voltage
 Number of Defects (Measured characteristics)
per hour
3
(Counted items)
 Classification of Data
• Process of organizing the data in
groups/classes on the basis of certain
properties
• Requisites of Ideal Classifications
– Should be Unambiguous
– Classes should be exhaustive and mutually
exclusive
– Should be stable
– Should be flexible

4
 Classification of Data contd.
Basis of classification:
• Geographical classification-> Data are
classified on the basis of geographic location
• Chronological Classification->
What’s Chronological order?
• Qualitative and Quantitative classification
– (simple vs. manifold and continuous vs. discrete)
• Can you classify your friends?
5
 Can you figure out…
• Find to which type of numbers these variables
belong?
– Numbers of email messages sent daily by a financial
planner
– The weight of students who prefer vegetarian
dishes
– Your monthly mobile expenses

– The number of trees in ASBM campus

– The water level in the over-head water tank
Answers: all are discrete except the 2nd 3rd, and 5th examples are continuous.

6
Scales of Measurement

7
 Scales of Measurement
• Nominal
– A nominal scale classify or categorize data into
distinct categories in which no ranking is implied.
– Data are labels or names used to identify an
attribute of the element.
– A non-numeric label or a numeric code may be
used.
– Numbers are used to differentiate and not to make a
value statement about them.
*** Nominal sounds like name ***
Example: Courses offered in BBA at ASBM
8
 Scales of Measurement
• Ordinal
– The data have the properties of nominal data
and the order or rank of the data is
meaningful.
– A non-numeric label or a numeric code may be
used.
*** Ordinal sounds like order***

9
 Scales of Measurement
• Ordinal
– Example:

Categorical Variable Ordered Categories

Student roll number P090009ME, P110026ME, P130015ME

Product satisfaction Satisfied, Neutral, Unsatisfied

Faculty rank Senior Professor, Professor, Associate

Professor, Assistant Professor
Standard & Poor’s bond ratings AAA, AA, A, BBB, BB, B, CCC, CC, C,
DDD, DD, D
Student Grades S, A, B, C, D, E, F

10
 Scales of Measurement
• Interval
– An interval scale consists of ordered categories
that are all intervals of exactly the same size.
– Equal differences between numbers on a scale
reflect equal differences in magnitude.
– Interval data are always numeric.
– Example:
A measurement of 800C (or 0F) is higher than a measure
of 600C. It is exactly 200 higher

11
 Scales of Measurement
• Ratio
– The data have all the properties of interval data
and the ratio of two values is meaningful.
– This scale must contain a zero value (absolute
zero) that indicates that nothing exists for the
variable at the zero point.
– Variables such as distance, height, weight, and
time use the ratio scale.

12
 Self Test
1. For each of the following variables determine
whether the variable is categorical or numerical.
If the variable is numerical, determine whether
the variable is discrete or continuous.
a. Number of broadband connections per household
b. Length of the longest long-distance call made per
month
c. Whether there is a telephone line connected to a
computer modem in the household
d. Whether there is a LPG connection in the household

13
 Organisation of Data using data array
• Why organising the data is important?
– Presents the data in a identifiable format quickly
• Data arranged in rank-order in ascending or
descending way is called “ordered array”.
• Advantages & Disadvantages of ordered array

14
 Ungrouped Versus Grouped Data

• Ungrouped data
• have not been summarized in any way
• are also called raw data
• Grouped data
• have been organized into a frequency
distribution

15
Example of Ungrouped Data
42 26 32 34 57
30 58 37 50 30
53 40 30 47 49
50 40 32 31 40
52 28 23 35 25
30 36 32 26 50
55 30 58 64 52
49 33 43 46 32
61 31 30 40 60
74 37 29 43 54

Ages of a Sample of Managers from XYZ

 Example of Grouped Data
Frequency Distribution of Ages
Class Interval Frequency
20- 30 6
30- 40 18 Inclusive Class Interval
40- 50 11 or
Exclusive Class Interval
50- 60 11
60- 70 3
70- 80 1

17
 Example of Grouped Data
Frequency Distribution of Ages
Class Interval Frequency
20-under 30 6
A frequency distribution is
30-under 40 18 an organized tabulation of
the number of individuals
40-under 50 11 located in each category on
50-under 60 11 the scale of measurement

60-under 70 3
70-under 80 1

18
 Frequency Distribution
• What do you mean by frequency?
– A number of times a data value occurs (in Statistics)
• How many times u see a data in a particular
data array
• Example:
Age (years) in a region
10,12,10,15,23,21,21,15,10,12,21,21,24,25
Try to calculate the frequency of each data
points
19
 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
 Data Range
• What is the range of the road you covered
here ?

24 64

• Data range is the same thing. It’s the

difference between the largest and smallest
number in a data array
21
 Data Range

42 26 32 34 57 Range = Largest - Smallest

30 58 37 50 30

53 40 30 47 49
= 74 - 23
50 40 32 31 40 = 51
52 28 23 35 25

30 36 32 26 50

55 30 58 64 52 Smallest
49 33 43 46 32

61 31 30 40 60 Largest
74 37 29 43 54

22
Number of Classes and Class Width
• The number of classes should be between 5 and 15.
• Fewer than 5 classes cause excessive summarization.
• More than 15 classes leave too much detail.
• Class Width
• Divide the range by the number of classes for an
approximate class width
• Round up to a convenient number

51
Approximat e Class Width = = 8.5
6
Class Width = 10
23
 Class Midpoint

beginning class endpoint + ending class endpoint

Class Midpoint =
2
30 + 40
=
2
= 35
1
Class Midpoint = class beginning point + class width
2
1
= 30 + 10
2
= 35

24
 Relative Frequency
Relative
Class Interval Frequency Frequency
20-under 30 6 .12
30-under 40 18 6 .36

40-under 50 11 50 .22
50-under 60 11 .22
18
60-under 70 3  .06
70-under 80 1 50 .02
Total 50 1.00

Statistics for Management 25

 Cumulative Frequency
Cumulative
Class Interval Frequency Frequency
20-under 30 6 6
30-under 40 18 18 + 6 24
40-under 50 11 11 + 24 35
50-under 60 11 46
60-under 70 3 49
70-under 80 1 50
Total 50

Statistics for Management 26

 Class Midpoints, Relative Frequencies, and
Cumulative Frequencies

Relative Cumulative
Class Interval Frequency Midpoint Frequency Frequency
20-under 30 6 25 .12 6
30-under 40 18 35 .36 24
40-under 50 11 45 .22 35
50-under 60 11 55 .22 46
60-under 70 3 65 .06 49
70-under 80 1 75 .02 50
Total 50 1.00

Statistics for Management 27

 Cumulative Relative Frequencies

Relative Cumulative Cumulative Relative

Class Interval Frequency Frequency Frequency Frequency

20-under 30 6 .12 6 .12

30-under 40 18 .36 24 .48
40-under 50 11 .22 35 .70
50-under 60 11 .22 46 .92
60-under 70 3 .06 49 .98
70-under 80 1 .02 50 1.00
Total 50 1.00

Statistics for Management 28

 Exercise - 1
Compare the cost of meals at various restaurants in City and Suburban
region with the help of a Frequency distribution, Relative Frequency
distribution and Cumulative Frequency distribution.
Meal Cost for a Restaurant in the City
40 26 35 25 34 51 55 13 42 62
22 26 33 35 21 61 53 26 30 41
57 41 53 39 26 62 34 75 32 35
50 41 22 53 37 45 37 68 24 66
51 35 36 39 39 44 50 43 46 62
Meal Cost for a Restaurant in the Suburban
62 27 47 42 25 36 39 32 41 50
50 37 50 47 52 31 38 44 32 47
51 26 37 26 38 22 53 40 43 35
25 65 67 28 29 35 27 28 58 38
41 50 28 41 21 40 42 50 48 37

Statistics for Management 29

END

30