Basic Data

Analysis:
Descriptive
Statistics

2
0

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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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EXHIBIT 20.1

Levels of Scale Measurement and

Suggested Descriptive Statistics

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

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Pie Chart and Bar Chart Using

Excel

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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

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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 (Yaxis).
We usually put the variable
(dependent) that can be affected
by the other variable
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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?

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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.

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Our Four-Legged
Family
Do men and women
treat their four-legged
Members
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.

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Computer Programs for

Analysis

Statistical
Packages

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

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