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4-1




   Chapter

           Four




McGraw-Hill/Irwin   © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter Four
                                                                     4-2



     Describing Data: Displaying and Exploring Data

GOALS
When you have completed this chapter, you will be able to:

 ONE
 Develop and interpret a dot plot.
TWO
Develop and interpret a stem-and-leaf display.
THREE
Compute and interpret quartiles, deciles, and percentiles.
 FOUR
 Construct and interpret box plots.
                                                             Goals
Chapter Four
                                                                4-3



   Describing Data: Displaying and Exploring Data

FIVE
Compute and understand the coefficient of variation and the
coefficient of skewness.

SIX
Draw and interpret a scatter diagram.

SEVEN
Set up and interpret a contingency table.




                                                        Goals
4-4


          Stem-and-leaf Displays

Stem-and-leaf           Note: an advantage
display: A              of the stem-and-leaf
statistical technique   display over a
for displaying a set    frequency
of data. Each           distribution is we
numerical value is      do not lose the
divided into two        identity of each
parts: the leading      observation.
digits become the
stem and the
trailing digits the
leaf.
                                   Stem-and-leaf Displays
4-5


   Stock prices on twelve
consecutive days for a major
  publicly traded company       100


                                90


                                80


                                70


                                60



   86, 79, 92, 84, 69, 88, 91   50
                                      1   2   3   4   5   6   7   8   9   10   11 12




      83, 96, 78, 82, 85.




                                                                      Example 2
4-6



Stem and leaf display of stock prices

            stem leaf
                6 9
                7 89
                8 234568
                9 126



                               Example 2 (Continued )
4-7



Quartiles
            Divide a set of
            observations
              into four
             equal parts.




                              Quartiles
4-8



Quartiles
         Locate the median,
          (50th percentile)
     first quartile (25th percentile)

         and the 3rd quartile
           (75th percentile)




                            Quartiles (continued)
4-9



Quartiles
                      P
    Lp = (n+1)
                    100
    where

     P is the desired percentile




                          Quartiles (continued)
4-10




   Using the twelve stock prices, we can find the
   median, 25th, and 75th percentiles as follows:

Quartile 3   L75 = (12 + 1) 75 = 9.75th observation
                            100

                             50
 Median      L50 = (12 + 1)     = 6.50th observation
                            100


                            25 = 3.25th observation
Quartile 1    L25 = (12+1)
                           100

                                       Example 2 (continued)
4-11




             th
   12   96 75 percentile
Q4 11   92 Price at 9.75 observation = 88 + .75(91-88)
   10   91 = 90.25
   9    88
Q3 8    86
           50th percentile: Median
   7    85
           Price at 6.50 observation = 85 + .5(85-84)
   6    84
            = 84.50
Q2 5    83
   4    82
   3    79 25th percentile
Q1 2    78 Price at 3.25 observation = 79 + .25(82-79)
   1    69  = 79.75

                                        Example 2 (continued)
4-12




The Interquartile         This distance will
range is the distance   include the middle 50
between the third           percent of the
quartile Q3 and the         observations.
first quartile Q1.




    Interquartile range = Q3 - Q1


                                    Interquartile Range
4-13



For a set of
observations the third
quartile is 24 and the
first quartile is 10.
What is the quartile
deviation?
                          The interquartile range is
                            24 - 10 = 14. Fifty
                         percent of the observations
                         will occur between 10 and
                                     24.


                                                Example 3
4-14




A box plot is a graphical
   display, based on
 quartiles, that helps to
  picture a set of data.
  Five pieces of data
  are needed to
  construct a box
  plot: the Minimum
  Value, the First
  Quartile, the
  Median, the Third
  Quartile, and the
  Maximum Value.
                            Box Plots
4-15



   Based on a sample of 20
         deliveries,
 Buddy’s Pizza determined the
  following information. The
minimum delivery time was 13
 minutes and the maximum 30
minutes. The first quartile was
   15 minutes, the median 18
minutes, and the third quartile
22 minutes. Develop a box plot
      for the delivery times.



                                  Example 4
4-16




Example 4 continued
4-17




 Min Q         Median      Q3                  Max
      1




12   14   16    18   20   22    24   26   28   30    32




                                           Example 4 continued

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Chapter 4 powerpoint

  • 1. 4-1 Chapter Four McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. Chapter Four 4-2 Describing Data: Displaying and Exploring Data GOALS When you have completed this chapter, you will be able to: ONE Develop and interpret a dot plot. TWO Develop and interpret a stem-and-leaf display. THREE Compute and interpret quartiles, deciles, and percentiles. FOUR Construct and interpret box plots. Goals
  • 3. Chapter Four 4-3 Describing Data: Displaying and Exploring Data FIVE Compute and understand the coefficient of variation and the coefficient of skewness. SIX Draw and interpret a scatter diagram. SEVEN Set up and interpret a contingency table. Goals
  • 4. 4-4 Stem-and-leaf Displays Stem-and-leaf Note: an advantage display: A of the stem-and-leaf statistical technique display over a for displaying a set frequency of data. Each distribution is we numerical value is do not lose the divided into two identity of each parts: the leading observation. digits become the stem and the trailing digits the leaf. Stem-and-leaf Displays
  • 5. 4-5 Stock prices on twelve consecutive days for a major publicly traded company 100 90 80 70 60 86, 79, 92, 84, 69, 88, 91 50 1 2 3 4 5 6 7 8 9 10 11 12 83, 96, 78, 82, 85. Example 2
  • 6. 4-6 Stem and leaf display of stock prices stem leaf 6 9 7 89 8 234568 9 126 Example 2 (Continued )
  • 7. 4-7 Quartiles Divide a set of observations into four equal parts. Quartiles
  • 8. 4-8 Quartiles Locate the median, (50th percentile) first quartile (25th percentile) and the 3rd quartile (75th percentile) Quartiles (continued)
  • 9. 4-9 Quartiles P Lp = (n+1) 100 where P is the desired percentile Quartiles (continued)
  • 10. 4-10 Using the twelve stock prices, we can find the median, 25th, and 75th percentiles as follows: Quartile 3 L75 = (12 + 1) 75 = 9.75th observation 100 50 Median L50 = (12 + 1) = 6.50th observation 100 25 = 3.25th observation Quartile 1 L25 = (12+1) 100 Example 2 (continued)
  • 11. 4-11 th 12 96 75 percentile Q4 11 92 Price at 9.75 observation = 88 + .75(91-88) 10 91 = 90.25 9 88 Q3 8 86 50th percentile: Median 7 85 Price at 6.50 observation = 85 + .5(85-84) 6 84 = 84.50 Q2 5 83 4 82 3 79 25th percentile Q1 2 78 Price at 3.25 observation = 79 + .25(82-79) 1 69 = 79.75 Example 2 (continued)
  • 12. 4-12 The Interquartile This distance will range is the distance include the middle 50 between the third percent of the quartile Q3 and the observations. first quartile Q1. Interquartile range = Q3 - Q1 Interquartile Range
  • 13. 4-13 For a set of observations the third quartile is 24 and the first quartile is 10. What is the quartile deviation? The interquartile range is 24 - 10 = 14. Fifty percent of the observations will occur between 10 and 24. Example 3
  • 14. 4-14 A box plot is a graphical display, based on quartiles, that helps to picture a set of data. Five pieces of data are needed to construct a box plot: the Minimum Value, the First Quartile, the Median, the Third Quartile, and the Maximum Value. Box Plots
  • 15. 4-15 Based on a sample of 20 deliveries, Buddy’s Pizza determined the following information. The minimum delivery time was 13 minutes and the maximum 30 minutes. The first quartile was 15 minutes, the median 18 minutes, and the third quartile 22 minutes. Develop a box plot for the delivery times. Example 4
  • 17. 4-17 Min Q Median Q3 Max 1 12 14 16 18 20 22 24 26 28 30 32 Example 4 continued