Chapter 2 Tabular and Graphical Methods - Jaggia4e - PPT

2
Tabular and
Graphical Methods
Business Statistics:
Communicating with Numbers, 4e
By Sanjiv Jaggia and Alison Kelly
Copyright ©2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written
2/5/23 consent of McGraw Hill.
2-1
Chapter 2 Learning Objectives (LOs)
LO 2.1 Construct and interpret a frequency distribution for
a categorical variable.
LO 2.2 Construct and interpret a bar chart and a pie chart.
LO 2.3 Construct and interpret a contingency table and a
stacked bar chart for two categorical variables.
LO 2.4 Construct and interpret a frequency distribution for
a numerical variable
LO 2.5 Construct and interpret a histogram, a polygon, and
an ogive.
LO 2.6 Construct and interpret a scatterplot, a scatterplot
with a categorical variable, and a line chart.
LO 2.7 Construct and interpret a stem-and-leaf diagram.
BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-2
consent
Copyright ©2022 McGraw Hill. All rights reserved. No reproduction or distribution withoutofthe
McGraw Hill. consent of McGraw Hill.
prior written 2-2
2.1 Methods to Visualize a Categorical
Variable (1)
• A categorical variable consists of
observations that represent labels or names.
• Example, Assuming, participants in a survey
was asked to indicate their Gender, Race and
provide ratings of product.
• Categorical variable - summarize the data
with a frequency distribution.
– It is a table that summarizes the number (or frequency) of
items in each of several nonoverlapping classes.
– Group the data into categories and record the number of
observations that fall into each category.

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Frequency Distribution and Relative
Frequency
– Frequency Distribution for a categorical variable
groups the data into categories and records the
number of observations that fall into each category.
– The relative frequency for each category is the
proportion (fraction) of observations in each category.
– Relative frequency of a class = frequency of the
class divided by n (observations)
– Multiply the proportions by 100 to get
percentages.

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Variable (2)
• Example: Myers-Briggs assessment personality
types for 1,000 employees at a technology firm.
• Personality variable – categorical, nominal

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Variable (3)
• BAR chart and PIE chart – applied in categorical
variable
• A bar chart depicts the frequency or relative
frequency for each category of the categorial
variable.
– Series of either horizontal or vertical bars
– Bar lengths proportional to the values they are depicting
• A pie chart is a segmented circle whose segments
portray the relative frequencies of the categories of
a qualitative variable.
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Variable (4)
• Example: Myers-Briggs assessment personality
types for 1000 employees at a technology firm.
•NOTE: COMPLETE THE CHART WITH TITLE AND X&Y LABELS

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Example: Transit_Survey
1. Open the Transit_Survey

2. Construct a Frequency Table for the
Mode of Transportation and Number of
respondents
3. Construct a Bar Chart (horizontal or
vertical); make sure that appropriate
labels will be indicated
4. Construct a Pie Chart
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Cautionary Comments when Constructing or
Interpreting charts or graph
To avoid DISTORTIONs of graphical information.
• The simplest graph should be used for a given set of data, strive for
clarity and avoid unnecessary adornments.
• Axes should be clearly marked with numbers and scales.
• Bars on bar charts should have the same width.
• Vertical axis should not have a very high values as an upper limit.
• Vertical axis should not be stretched.

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Exercises 2.1

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2.2 Methods to Visualize the Relationship
Between Two Categorical Variables (1)
• Use a contingency table to examine the relationship
between two categorical variables.
– Frequencies for two categorical variables
– Each cell represents a mutually exclusive combination of the pair
of values
– Mutually exclusive is a statistical term describing two or more
events that cannot happen simultaneously
– Interested on which categories more prevalent.
• Use a stacked column chart to visualize more than one
categorical variable.
– Graphically shows the contingency table
– Contingency table shows frequency of two categorical variables, x
& y, where each cells represent a mutually exclusive combination of
the pair x & y values. (Ex. Male and female in the table)
– Allows for the comparison compositive within each category
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2.2 Methods to Visualize the Relationship
Between Two Categorical Variables (2)
• Example: Myers-Brigg personality assessment and sex
Personality
Sex Analyst Diplomat Explorer Sentinel
Female 55 164 194 79
Male 61 160 210 77

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Demo on Pivot using File Promotion
A PivotTable is a powerful tool to calculate,

summarize, and analyze data that lets you see
comparisons, patterns, and trends in your data.
A PivotTable is an interactive way to quickly

summarize large amounts of data.

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2.3 Methods to Visualize a Numeric
Variable (1)
• For a categorical, the raw data could be
categorized in a well-defined way.
• With a numerical variable, each observation
represents a meaningful amount or count.
• Use a frequency distribution to summarize a
numerical variable.
• Instead of categories, we construct a series of
intervals or classes.
• The data are more manageable using a
frequency distribution, but some detail is lost.

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Variable (2)
• We have to make decisions about the number of
intervals and the width of each interval.
– The intervals are mutually exclusive; no overlapping
interval.
– The total number of intervals usually ranges from 5 to
20.
– The intervals are exhaustive – total number of
intervals covers the entire sample.
– The intervals are easy to recognize and interpret.
– A starting point for approximating the width of each
!"#$%&%'!$($%&%
interval is given by )&%*+, -. /(0+,1"23 .

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Variable (3)
• Example: house prices in Punta Gorda. File PG_Sales
• Suppose we are going to have 6 intervals.
• The maximum price is 649 and the minimum price is 125.
• As a starting point, the width of each interval could be:
!"#$%&'
= 87.33.
!
• This would not give limits that are easily recognizable, so
we use 100.

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Variable (4)
• In addition to a frequency distribution, there are
three other items to compute.
– Relative frequency: proportion (or fraction) of
observations that falls into each interval.
– Cumulative frequency: the number of observations
that falls below the upper limit of a particular interval.
– Cumulative relative frequency: the proportion (or
fraction) of observations that falls below the upper
limit of a particular interval.

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Variable (5)
• Example: house prices in Punta Gorda
• Use the previous frequency distribution to
determine the below.

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Variable (6)
• A histogram is the counterpart to the vertical bar
chart used for a categorical variable.
• Graphically depict a frequency distribution for a
numeric variable.
– A series of rectangles
– Mark off the along the horizontal axis
– The height of each bar represents the frequency or
relative frequency for each interval
– No gaps between bars/intervals

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Variable (7)
• A histogram allows us to quickly see where most of the
observations tend to cluster.
• A histogram indicates the spread and shape of the
variable.
– Symmetric: mirror image of itself on both sides of its center
– Skewed: positive (elongated right tail) or negative (elongated left tail)

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Variable (8)

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Variable (9)
• A polygon provides another way of depicting a
frequency distribution.
• Connect a series of neighboring points where
each points represent the midpoint of a
particular class and its associated frequency
– Midpoint of each interval/class on the x-axis
– Frequency or relative frequency on the y-axis
– Connect neighboring points with a straight line
• A polygon gives a general idea about the shape
of a distribution.

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Variable (10)

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Variable (11)
• An ogive depicts a cumulative frequency or
cumulative relative frequency.
– Upper limit of each interval/class on the x-axis
– Cumulative frequency or cumulative relative
frequency on the y-axis
– Connect neighboring points with a straight line
– Close the ogive at the lower end by intersecting
the x-axis at the lower limit of the first interval

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Variable (12)

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• Use EXCEL to demonstrate
• File Polygon and Ogive

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2.4 More Data Visualization Methods (1)
• Use a scatterplot to examine the relationship between two
numerical variables.
– Determine if two numerical variables are related in some systematic way
– Each point represents a pair of observations of the two variables
– Refer to one variable as x (x-axis) and the other as y (y-axis)
• Once plotted, the graph may reveal one of the below.
– A linear relationship
– A nonlinear relationship
– No relationship

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• Example: house prices and square footage in Punta Gorda

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• A scatterplot with a categorical variable modifies a basic scatterplot.
– Incorporate a categorical variable in addition to the two numeric variables
– Encode the categorical variable with color
– Giving each point a distinct hue makes it easy to show its category
• This allows you to determine if the relationship between x and y differs
across the values of the categorical variable.
• Example: house prices and square footage by type in Punta Gorda

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• A line chart displays a numerical variable as a

series of consecutive observations connected by a
line.
• A line chart is especially useful for tracking
changes or trends over time.
• It is also easy for us to identify any major changes
that happened in the past on a line chart.
• When multiple lines are plotted in the same chart,
we can compare these observations on one or
more dimensions.

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• Example: monthly stock prices for Apple and Merck

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2.5 A Stem-And-Leaf Diagram (1)
• A stem-and-leaf diagram provides another visual
method for displaying a numerical variable.
• It gives an overall picture of where the
observations are centered and how they are
dispersed from the center.
• Separate each observation of a variable into two
parts.
– Stem: left-most digits
– Leaf: the last digit

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2.5 A Stem-And-Leaf Diagram (2)
• Example: age of the wealthiest people in the world

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2

By Sanjiv Jaggia and Alison Kelly

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-3

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-4

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-5

•NOTE: COMPLETE THE CHART WITH TITLE AND X&Y LABELS

1. Open the Transit_Survey

• Vertical axis should not be stretched.

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-9

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-10

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-16

A PivotTable is a powerful tool to calculate,

A PivotTable is an interactive way to quickly

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-17

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-21

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-22

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-23

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-24

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-25

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-26

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-27

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-28

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-29

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-30

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-31

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-32

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-33

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-38

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-39

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-40

• A line chart displays a numerical variable as a

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-41

• Example: monthly stock prices for Apple and Merck

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-42

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-43

BUSINESS STATISTICS: COMMUNICATING WITH NUMBERS, 4e | Jaggia, Kelly 2-44

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