Basic Concepts of Statistical Studies

Department of Decision Sciences

Dr RS Rai
M.Sc. (Statistics), M.I.B., Ph.D. (Statistics)
Professor - Decision Sciences
Amity Business School
Director - Research, Planning & Statistical Services
Amity University Uttar Pradesh
Sector 125, Noida 201313, UP, INDIA
E: [email protected], [email protected]
M: +91-9971711930
 Descriptive Statistics:
Tabular and Graphical Displays
Summarizing Data for a Categorical Variable
Summarizing Data for a Quantitative Variable

Categorical data use labels or names

to identify categories of like items.

Quantitative data are numerical values

that indicate how much or how many.
 Choosing the Type of Graphical Display

◼ Displays used to show the distribution of data:

Bar Chart Pie Chart Dot Plot

Histogram Stem-and-Leaf Display

◼ Displays used to make comparisons:

Side-by-Side Bar Chart Stacked Bar Chart

◼ Displays used to show relationships:

Scatter Diagram Trendline
Using Excel for Tabular and Graphical Presentations
Excel offers extensive capabilities for constructing tabular and
graphical summaries of data.
Excel can be used to construct a frequency distribution, bar graph,
pie chart, histogram, crosstabulation, and scatter diagram.
We will see two of Excel’s most powerful tools: the Chart Wizard
and the PivotTable Report.
 Frequency Distribution and Bar Graph for
Qualitative Data
Excel can be used to construct a frequency distribution and a bar
graph for qualitative data.
Data on soft drink purchases. Excel file name: SoftDrink

Frequency distribution: The COUNTIF function can be used to

construct a frequency distribution for the data in Excel file
SoftDrink.xlsx. Refer to Figure 2.10 as we describe the steps
involved. The formula worksheet (showing the functions and
formulas used) is set in the background, and the value worksheet
(showing the results obtained using the functions and formulas)
appears in the foreground.
 FREQUENCY DISTRIBUTION
A frequency distribution is a tabular summary of data showing the
number (frequency) of items in each of several nonoverlapping
classes.
Let us use the example to demonstrate the construction and
interpretation of a frequency distribution for qualitative data. Coke
Classic, Diet Coke, Dr. Pepper, Pepsi, and Sprite are five popular
soft drinks.
The label “Brand Purchased” and the data for the 50 soft drink purchases are in
cells A1:A51.
We also entered the labels “Soft Drink” and “Frequency” in cells C1:D1.T
he five soft drink names are entered into cells C2:C6. Excel’s COUNTIF function
can now be used to count the number of times each soft drink appears in cells
A2:A51. The following steps are used.
Step 1. Select cell D2
Step 2. Enter =COUNTIF($A$2:$A$51,C2)
Step 3. Copy cell D2 to cells D3:D6
 Relative Frequency and Percent Frequency
Distributions
A frequency distribution shows the number (frequency) of items in
each of several nonoverlapping classes.
However, we are often interested in the proportion, or percentage,
of items in each class.
The relative frequency of a class equals the fraction or proportion of
items belonging to a class. For a data set with n observations, the
relative frequency of each class can be determined as follows:

A relative frequency distribution gives a tabular summary of data

showing the rela-tive frequency for each class. A percent
frequency distribution summarizes the percent frequency of the
data for each class.
RELATIVE FREQUENCY AND PERCENT
FREQUENCY DISTRIBUTIONS
 Bar Graph and Pie Chart
A bar graph, or bar chart, is a graphical
device for depicting qualitative data
summarized in a frequency, relative
frequency, or percent frequency distribution.
On one axis of the graph (usually the
horizontal axis), we specify the labels that
are used for the classes (categories). A
frequency, relative frequency, or percent
frequency scale can be used for the other
axis of the graph (usually the vertical axis).
Then, using a bar of fixed width drawn
above each class label, we extend the length
of the bar until we reach the frequency,
relative frequency, or per-cent frequency of
the class. For qualitative data, the bars
should be separated to emphasize the fact
that each class is separate.
 Create a Column Chart in Excel
Select a cell in the data range.
On the Ribbon's Insert tab, click Column Chart, and click the first
subtype -- 2D Clustered Column
This creates a chart that is embedded on the active worksheet, with
both the series shown as columns
 Create a Pie Chart in Excel
Select a cell in the data range.
On the Ribbon's Insert tab, click Pie or Dougnut Chart, and click
the first subtype -- 2D Pie
This creates a chart that is embedded on the active worksheet
Frequency Distribution and Histogram for Quantitative Data

Excel can be used to

construct a frequency
distribution and a
histogram for
quantitative data.
Excel file: Audit.xlsx
 Frequency distribution
Frequency distribution Excel’s FREQUENCY
function can be used to construct a frequency
distribution for quantitative data.
Refer to Figure as we describe the steps involved.
The formula worksheet is in the background, and the
value worksheet is in the foreground. The label “Audit
Time” is in cell A1 and the data for the 20 audits are
in cells A2:A21.
We make the five classes 10–14, 15–19, 20–24, 25–
29, and 30–34.
The label “Audit Time” and the five classes are
entered in cells C1:C6. The label “Upper Limit” and
the five class upper limits are entered in cells D1:D6.
We also entered the label “Frequency” in cell E1.
Excel’s FREQUENCY function will be used to show
the class frequencies in cells E2:E6
Step 1. Select cells E2:E6
Step 2. Type, but do not enter, the following
formula:
=FREQUENCY(A2:A21,D2:D6)
Step 3. Press CTRL + SHIFT + ENTER and the
array formula will be entered into each of the
cells E2:E6
The values displayed in the cells E2:E6 indicate
frequencies for the corresponding classes.
Referring to the FREQUENCY function, we see
that the range of cells for the upper class limits
(D2:D6) provides input to the function.
These upper class limits, which Excel refers to as
bins, tell Excel which frequency to put into the
cells of the output range (E2:E6). For example,
the frequency for the class with an upper limit, or
bin, of 14 is placed in the first cell (E2), the
frequency for the class with an upper limit, or
bin, of 19 is placed in the second cell (E3), and
so on.
 Histogram
To use Excel’s Chart Wizard to construct a histogram for the audit time data, we
begin with the frequency distribution as shown in Figure.
The frequency distribution worksheet and the histogram output are shown in the
Figure on this slide.
The following steps describe how to use the Chart Wizard to develop the
histogram of the audit time data.
 Step 1. Select cells E2:E6
Step 2. Click the Chart Wizard button on the Standard toolbar (or select the
Insert menu and choose the Chart option)
Step 3. When the Chart Wizard - Step 1 of 4 - Chart Type dialog box appears:
Choose Column in the Chart type listChoose Clustered Column
from the Chart sub-type display Click Next >
Step 4. When the Chart Wizard - Step 2 of 4 - Chart Source Data dialog box
appears:
Select the Series tab and thenClick in the Category (X) axis labels box Select cells
C2:C6Click Next >
Step 5. When the Chart Wizard - Step 3 of 4 - Chart Options dialog box
appears:
Select the Titles tab and then
Type Histogram for Audit Time Data in the Chart title box
Type Audit Time in Days in the Category (X) axis box
Type Frequency in the Value (Y) axis box
Click Next >
 Step 6. When the Chart Wizard - Step 4 of 4 -
Chart Location dialog box appears:
Specify a location for the chart (we used
the current worksheet by selecting As object
in)
Click Finish
At this point, the worksheet will show a
column chart produced by Excel. However,
gaps will appear between the rectangles.
Because the adjacent rectangles in a histogram
touch, we need to edit the chart in order to
eliminate the gaps between the rectangles. The
following steps describe this process.
Step 1. Double-click on any rectangle in the
column chart
Step 2. When the Format Data Point dialog
box appears:
Select the Series Options tab
Enter 0 in the Gap width box
The histogram will appear as shown
Finally, an interesting aspect of the worksheet is that Excel has
linked the data in cells A2:A21 to the frequencies in cells E2:E6
and to the histogram.
If an edit or revision of the data in cells A2:A21 occurs, the
frequencies in cells E2:E6 and the histogram will be updated
automatically to display a revised frequency distribution and
histogram.
Try one or two data edits to see how this automatic updating works.