The document discusses the construction of frequency tables, emphasizing the importance of mutually exclusive and collectively exhaustive classes. It explains how to convert class frequencies to relative frequencies and presents a case study involving customer preferences for different beverages. Additionally, it highlights the use of histograms for visualizing continuous data, particularly in relation to profit analysis.
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The document discusses the construction of frequency tables, emphasizing the importance of mutually exclusive and collectively exhaustive classes. It explains how to convert class frequencies to relative frequencies and presents a case study involving customer preferences for different beverages. Additionally, it highlights the use of histograms for visualizing continuous data, particularly in relation to profit analysis.
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Constructing Frequency Tables
Mutually exclusive classes means that a particular vehicle can be
assigned to only one class.
In addition, the frequency table must be collectively exhaustive. That is,
every vehicle sold last month is accounted for in the table. If every vehicle is included in the frequency table, the table will be collectively exhaustive, and the total number of vehicles will be 180. You can convert class frequencies to relative class frequencies to show the fraction of the total number of observations in each class. A relative frequency captures the relationship between a class frequency and the total number of observations. In the vehicle sales example, we may want to know the percentage of total cars sold at each of the four locations. To convert a frequency table to a relative frequency table, each of the class frequencies is divided by the total number of observations.
Relative Class Frequencies
Graphic Presentation of Qualitative Data DeCenzo Specialty Food and Beverage Company has been serving a cola drink with an additional flavoring, Cola-Plus, that is very popular among its customers. The company is interested in customer preferences for Cola-Plus versus Coca-Cola, Pepsi, and a lemon-lime beverage. They ask 100 randomly sampled customers to take a taste test and select the beverage they prefer most. The results are shown in the following table: It is possible to search the list and find the smallest or minimum profit ($294) and the largest or maximum profit ($3,292), but that is about all. It is difficult to determine a typical profit or to visualize where the profits tend to cluster. The raw data are more easily interpreted if we summarize the data with a frequency distribution. The steps to create this frequency distribution follow. Histogram Note that there is no space between the bars. This is a feature of the histogram. Why is this so? Because the variable profit, plotted on the horizontal axis, is a continuous variable. In a bar chart, the scale of measurement is usually nominal and the vertical bars are separated. This is an important distinction between the histogram and the bar chart. The End!