Gathering and Organizing Data

(A Written Report)

In Partial Fulfilment of the Course Requirements in

Math112n- Mathematics of Investment

Prepared by:

NAME OF STUDENTS

Dhaja Lyn Lordan

Grace Bernadeth

Jeciel Carlon

Mary Grace Suan Salape

Pamela May Managbanag Agao

Rhea Mauro

Trixie Bati-on

Submitted to:
Raymund M. Igcasama
Instructor

2nd Semester, AY 2023-2024

Lesson Summary
This lesson discusses the data collection process. It also deals with the two major types
of data, the four levels of measurement, and the different forms of organizing and
presenting data.

Learning Outcomes

At the end of the lesson, the students will be able to:

1. Differentiate between qualitative data and quantitative data.
2. Classify data according to the four levels of measurement.
3. Represent data in frequency distributions graphically, using histograms and
frequency polygons.

Motivation Activity

Introduction

Over the years, people have been interested in determining the occurrence of
certain events at certain periods of time (i.e., birth rates, mortality rates), crop yields,
frequency of failures in school entrance exams, etc. These activities deal with the
counts or numerical measures of activities, events, and things, which are called
statistics in a limited sense.

From the research point of view, statistics is a science that deals with the
collection, presentation, analysis, and interpretation of data. Data collection is the
process of gathering and measuring information about variables being studied in an
established systematic procedure. It refers to facts or figures from which a conclusion
can be made. Data gathering involves getting information through individual interviews,
focus groups, questionnaires, observations, experimentations, and many other
methods.

Why study Statistics?

It is important to learn statistics because so many of the decisions that we make

in everyday life are based on statistics. People may not realize, but statistics permeates
most of the decision making we do each day. However, students, practitioners, business
managers, and even executives are scared of statistics for years. Regardless of how
much you dislike (hate) statistics, there is no escape from numeracy. Your weekly
allowance, savings account, chance of winning lotto or getting a GPA of 1.0, all involve
numbers and their manipulation.

As your understanding of how numbers affect your life improves, your decision-
making about every day matters improves as well. The science that transforms data into
useful information for decision makers.
Statistics for Managers

Today, statistics plays an ever increasing important role for business managers.
These decision makers use statistics to:
 Present and describe data and information properly
 Draw conclusions about large populations, using information collected from
samples
 Make reliable forecasts or predictions about a business activity

Types of Statistics

Descriptive Statistics - Collecting, summarizing, and describing data. It can be used to

analyze both populations and samples.

Example:
 Collect data
ex. Survey
 Present data
ex. Tables and graphs
 Characterize data
ex. Sample mean

Inferential Statistics - Drawing conclusions and/or making decisions concerning a

population based only on sample or subset of the data.

Example:
 Estimation
ex. Estimate the population mean weight using the sample mean weight
 Hypothesis testing
ex. Test the claim that the population mean weight is 120 pounds

Basic Vocabulary of Statistics

VARIABLE - A variable is a characteristic of an item or individual. Height, age, income,

province or country of birth, grades obtained at school and type of housing are all
examples of variables. Variables may be classified into two main categories: categorical
and numeric.

DATA - Data are the different values associated with a variable.

OPERATIONAL DEFINITIONS - Variable values are meaningless unless their variables

have operational definitions, universally accepted meanings that are clear to all
associated with an analysis.
POPULATION- A population consists of all the items or individuals about which you
want to draw a conclusion. The unit of analysis may be a person, group, organization,
country, object, or any other entity that you wish to draw scientific inferences about.

SAMPLE - A sample is the portion of a population selected for analysis.

Example:

PARAMETER – A parameter is a numerical measure that describes a characteristic of a

population.

Types of Variables

 Categorical (qualitative) variables have values that can only be placed into
categories, such as “yes” and “no.”

 Numerical (quantitative) variables have values that represent quantities.

Example:
Levels of Measurement
The level of measurement determines which statistical calculations are meaningful.
The four levels of measurement are: nominal, ordinal, interval, and ratio.

 A nominal scale classifies data into distinct categories in which no ranking is

implied.

Example:

 An ordinal scale classifies data into distinct categories in which ranking is

implied.

Example:

 An interval scale is an ordered scale in which the difference between

measurements is a meaningful quantity but the measurements do not have a true
zero point.

 A ratio scale is an ordered scale in which the difference between the

measurements is a meaningful quantity and the measurements have a true zero
point.
Example:

Interval and Ratio Scales

Organizing Categorical Data:

Summary Table
 A summary table indicates the frequency, amount, or percentage of items in a
set of categories so that you can see differences between categories.

Example:

Banking Preference? Percent

ATM 16%
Automated or live telephone 2%
Drive-through service at branch 17%
In person at branch 41%
Internet 24%

Bar Chart
 In a bar chart, a bar shows each category, the length of which represents the
amount, frequency or percentage of values falling into a category. Then used to
show categorical data with rectangular bars either vertically or horizontally, with
their lengths representing their values. One axis of the bar chart will label the
categories being compared. The other axis will show the values associated with
each category.
 Example:

Pie Chart
 The pie chart is a circle broken up into slices that represent categories. The size
of each slice of the pie varies according to the percentage in each category.
Example:

Ordered Array
 An ordered array is a sequence of data, in rank order, from the smallest value to
the largest value.
 Shows range (minimum value to maximum value)
 May help identify outliers (unusual observations)
 Example:
Age of Surveyed Day Students
Students 16 17 17 18 18 18
College 19 19 20 20 21 22
22 25 27 32 38 42
Night Students
18 18 19 19 20 21
23 28 32 33 41 45

Stem and Leaf Display

 A stem-and-leaf display organizes data into groups (called stems) so that the
values within each group (the leaves) branch out to the right on each row. A
simple way to see how the data are distributed and where concentrations of data
exist.

 METHOD: Separate the sorted data series into leading digits (the stems) and the
trailing digits (the leaves)
Example:
Age of College Students
Day Students Night Students

Frequency Distribution
 The frequency distribution is a summary table in which the data are arranged
into numerically ordered class groupings. You must give attention to selecting the
appropriate number of class groupings for the table, determining a suitable
width of a class grouping, and establishing the boundaries of each class grouping
to avoid overlapping. To determine the width of a class interval, you divide the
range (Highest value-Lowest value) of the data by the number of class groupings
desired.
Example:
 A manufacturer of insulation randomly selects 20 winter days and records the
daily high temperature
24, 35, 17, 21, 24, 37, 26, 46, 58, 30, 32, 13, 12, 38, 41, 43, 44, 27, 53, 27
 Sort raw data in ascending order: 12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35,
37, 38, 41, 43, 44, 46, 53, 58
 Find range: 58 - 12 = 46
 Select number of classes: 5 (usually between 5 and 15)
 Compute class interval (width): 10 (46/5 then round up)
 Determine class boundaries (limits):
 Class 1: 10 but less than 20
 Class 2: 20 but less than 30
 Class 3: 30 but less than 40
 Class 4: 40 but less than 50
 Class 5: 50 but less than 60
 Compute class midpoints: 15, 25, 35, 45, 55
 Count observations & assign to classes
Class Frequency Tally Relative Percentage
Frequency
10 but less than 3 Ill 0.15 15%
20 6 lllll-l 0.30 30%
20 but less than 5 lllll 0.25 25%
30 4 llll 0.20 20%
30 but less than 2 ll 0.10 10%
40
40 but less than
50
50 but less than
60
Total 20 1.00 100%

Tabulating Numerical Data: Commutative Frequency

Class Frequency Tally Percentage Commutative Commutative
Frequency Percentage
10 but less than 3 Ill 15% 3 15
20 6 lllll-l 30% 9 45
20 but less than 5 lllll 25% 14 70
30 4 llll 20% 18 90
30 but less than 2 ll 10% 20 100
40
40 but less than
50
50 but less than
60
Total 20 1.00

Why Use a Frequency Distribution?

 It condenses the raw data into a more useful form.
 It allows for a quick visual interpretation of the data.
 It enables the determination of the major characteristics of the data set including
where the data are concentrated / clustered.
Frequency Distributions: Some Tips
 Different class boundaries may provide different pictures for the same data
(especially for smaller data sets).
 Shifts in data concentration may show up when different class boundaries are
chosen.
 As the size of the data set increases, the impact of alterations in the selection of
class boundaries is greatly reduced.
 When comparing two or more groups with different sample sizes, you must use
either a relative frequency or a percentage distribution.

Histogram
 A graph of the data in a frequency distribution is called a histogram. The class
boundaries (or class midpoints) are shown on the horizontal axis. The vertical
axis is either frequency, relative frequency, or percentage. Bars of the
appropriate heights are used to represent the number of observations within
each class.
Example:

Polygon
  A percentage polygon is formed by having the midpoint of each class represent
the data in that class and then connecting the sequence of midpoints at their
respective class percentages. The cumulative percentage polygon, or ogive,
displays the variable of interest along the X axis, and the cumulative percentages
along the Y axis. Most useful when the decision maker wants to see running
totals.
Example:

Class Midpoints
(In a percentage polygon the vertical axis would be defined to show the percentage of
observations per class)

Example:

Principles of Excellent Graphs

 The graph should not distort the data.
  The graph should not contain unnecessary adornments (sometimes referred to
as chart junk).
 The scale on the vertical axis should begin at zero.
 All axes should be properly labeled.
 The graph should contain a title.
 The simplest possible graph should be used for a given set of data.

Graphical Error: Chart Junk

Example:

No Relatives Basis
Example:

FR = Freshman , SO = Sophomore, JR = Junior, SR = Senior

Compressing the Vertical Axis

Example:

No Zero on the Vertical Axis

Example:

Graphing the first six months of sales

References:
 Allen Fowler; https://slideplayer.com/user/5297605/
 Christopher Lane; https://slideplayer.com/user/5297535/
 https://images.app.goo.gl/QQx381Lpmr3pYAff7
 Irwan Atmadjaja;
https://slideplayer.com/user/16726386/https://slideplayer.com/user/5297605
 Joel Smith; https://slideplayer.com/user/5275354/
 Lem Lem; https://www.slideshare.net/
 Rosa Segar; https://slideplayer.com/user/1718698/