20

Basic Data Analysis:

Descriptive Statistics

2013 Cengage Learning. All Rights Reserved. May

not be scanned, copied or duplicated, or posted to a
publicly accessible
website,
in whole
or in part.
2013
Cengage
Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Nature of Descriptive Analysis

Descriptive Analysis
The elementary transformation of raw data in
a way that describes the basic characteristics
such as central tendency, distribution, and
variability.

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202

EXHIBIT 20.1

Levels of Scale Measurement and

Suggested Descriptive Statistics

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203

Describing Data with Charts,

Tables and Graphs - Example
The Applewood Auto Group (AAG)sells a wide
range of vehicles through its four dealerships.
Ms. Kathryn Ball, a member of the senior
management team at AAG, is responsible for
tracking and analyzing vehicle sales and the
profitability of those vehicles. Kathryn would like
to summarize the profit earned on the vehicles
sold with tables, charts, and graphs that she
would review monthly. She wants to know the
profit per vehicle sold, as well as the lowest and
highest amount of profit. She is also interested in
describing the demographics of the buyers. What
are their ages? How many vehicles have they
previously purchased from one of the
Applewood dealerships? What type of vehicle did
they purchase? Partial data for 180 customers
are shown on the table on the right.

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2-4

Tabulation--Frequency Table
FREQUENCY DISTRIBUTION/TABLE A grouping of data into
mutually exclusive classes showing the number of observations in
each class.

Suppose Ms. Ball wanted to

summarize last months sales by
location. We can classify the
vehicles sold last month
according to their location using
the following frequency table.

TABLE 21 Frequency Table for Vehicles Sold Last

Month at Applewood Auto Group by Location

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2-5

Bar Charts
BAR CHART A graph in which the classes are reported on the horizontal
axis and the class frequencies on the vertical axis. The class frequencies
are proportional to the heights of the bars.

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2-6

Relative Class Frequencies

Class frequencies can be converted 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 total and the total number of observations.

Found by

52/180
40/180
45/180
43/180
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2-7

Pie Charts
PIE CHART A chart that shows the proportion or percent that
each class represents of the total number of frequencies.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2-8

Pie Chart and Bar Chart Using Excel

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2-9

Cross-Tabulation
Address research questions involving
relationships among multiple categories.
Cross-Tabulation Table of car sales by location and car type
Car Type
Location
Kane
Olean
Sheffield
Tionesta
Total

Sedan
20
17
17
14
68

SUV
21
8
11
17
57

Hybrid Compact Truck

1
3
7
2
9
4
5
8
4
0
8
4
8
28
19

Total
52
40
45
43
180

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2010

EXAMPLE Creating a Frequency Distribution Table

Kathryn Ball of the Applewood

Auto Group wants to develop
tables, charts, and graphs to
show the typical profit for each
sale. Table 24 reports the
profit on each of the 180
vehicles sold last month at the
four Applewood locations.
What is the typical profit on
each sale?
What is the largest profit on
any sale?
What is the lowest profit on
any sale?
Around what value did the
profits tend to cluster?

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2-11

Frequency Distribution for

Quantitative Data
Class interval: The class interval is obtained by subtracting the lower
limit of a class from the lower limit of the next class.
Class frequency: The number of observations in each class.

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2-12

Constructing a Histogram Using a

Frequency Table
HISTOGRAM A graph in which the classes are marked on the horizontal
axis and the class frequencies on the vertical axis. The class frequencies
are represented by the heights of the bars and the bars are drawn
adjacent to each other.

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2-13

Describing Relationship
between Two Variables
When we study the relationship between
two variables we refer to the data as
bivariate.
One graphical technique we use to show
the relationship between variables is called
a scatter diagram.
To draw a scatter diagram we one variable
along the horizontal axis (X-axis) of a graph
and the other variable along the vertical
axis (Y-axis).
We usually put the variable (dependent)
that can be affected by the other variable
(independent) along the Y-axis.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4-14

Describing Relationship between Two

Variables Scatter Diagram Examples

Positively Related

Not Related

Negatively Related
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4-15

Describing Relationship between Two Variables

Scatter Diagram Excel Example
Refer to the data from the Applewood Auto Group. We gathered
information concerning several variables, including the profit earned
from the sale of 180 vehicles sold last month. In addition to the
amount of profit on each sale, one of the other variables is the age of
the purchaser.
Is there a relationship between the profit earned on a vehicle sale and
the age of the purchaser?

Would it be reasonable to conclude that the more expensive vehicles

are purchased by older Buyers?

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4-16

Describing Relationship between Two Variables

Scatter Diagram Excel Example

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4-17

Cross-Tabulation
Cross-Tabulation
Addresses research questions involving
relationships among multiple categorical
variables.

Contingency Table
A table used to classify sample observations
according to two or more identifiable
characteristics.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2018

Our Four-Legged Family Members

Do men and women treat
their four-legged family
member differently?
Females are more likely to
have their pet sleep in their
bed and buy them a
holiday present.
Males are more likely to
buy a birthday present,
cook something special for
them, and take them to
work.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20-19

Computer Programs for Analysis

Statistical Packages
Spreadsheets
Excel
Statistical
software:
SAS
SPSS (Statistical
Package for Social
Sciences)
MINITAB

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2020