CHAPTER

Grouping and Displaying

Data to Convey Meaning :
Tables and Graphs

Thursday, April 1, 2010

McGraw-Hill/Irwin Presented
Copyright ©By
2005:by
Abhay Lidbe
The McGraw-Hill Companies, Inc.
1
Operations Management, Eighth Edition, by William J. Stevenson
All rights
 Introduction

A collection of tools used for

converting raw data into

information to help decision

makers in their works.

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 History

• Italian word “statista” (meaning statesman)

• Early Government records

• An early prediction from statistics

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 Math

• No calculus required
• Algebra required
• Reference Book :
Statistics for Management – Levin & Rubin
• Useful Websites :
http://www.netnam.vn/unescocourse/statistics/
www.tcd.ie/Statitics/Stuart/StatisticalAnalysis

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 Learning Objectives: Chapter 1

1. Define Statistics

2. Describe the Uses of Statistics

3. Distinguish Descriptive & Inferential Statistics

4. Define Population, Sample, Parameter,

& Statistic

5. Identify data types

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 What is Statistics?

• The practice (science?) of data analysis

• Summarizing data and drawing inferences

about the larger population from which it
was drawn

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 Statistical Methods

Statistical
Methods

Descriptive Inferential
Statistics Statistics

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 Descriptive Statistics

1.Involves $
50
Collecting Data
25
Presenting Data
Characterizing Data 0
Q1 Q2 Q3 Q4
2.Purpose
Describe Data  X = 30.5 S2 = 113

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 Inferential Statistics

1. Involves Population?
Estimation
Hypothesis
Testing

2. Purpose
Make Decisions Based
on Population
Characteristics

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 Key Terms

1. Population (Universe)
2. Sample
3. Parameter
4. Statistic

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 Population vs. Sample

Population Sample
o All items of interest o Portion of population
o Group of interest to o Will be used to reach
investigator conclusions about population

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 Key Terms

1. Population (Universe) P in Population

& Parameter
All Items of Interest
S in Sample
2. Sample
& Statistic
Portion of Population
3. Parameter
Summary Measure about Population
4. Statistic
Summary Measure about Sample

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 Why Study Samples to
Understand Population?
1) Easier than studying the whole
population
2) Costs less
3) Takes less time
4) Sometimes testing involves risk
5) Sometimes testing requires the
destruction of the item being
studied

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 Reliability of Data

Ask the following questions:

1) What is the source of data?
2) Do the data support or contradict available evidence?
3) Is evidence missing that might cause us to come to a
different conclusion?
4) What is the sample size? Does it represent the study
group?
5) Is the conclusion logical and supported by data?

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 Numerical Data Presentation
Numerical
Data

Ordered Frequency
Array Distributions

Histogram Polygon Ogive

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 Data Array

1.Organizes data to focus on major features

2.Data placed in rank order
smallest to largest (or largest to smallest)
3.Data in raw form (as collected)
24, 26, 24, 21, 27, 27, 30, 41, 32, 38
4.Data in ordered array
21, 24, 24, 26, 27, 27, 30, 32, 38, 41

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 Presenting Data in Array:
An Example
Raw Data: Yards Produced by 30 Carpet Looms
16.2 15.4 16.0 16.6 15.9 15.8 16.0 16.8 16.9 16.8
15.7 16.4 15.2 15.8 15.9 16.1 15.6 15.9 15.6 16.0
16.4 15.8 15.7 16.2 15.6 15.9 16.3 16.3 16.0 16.3

15.2 15.7 15.9 16.0 16.2 16.4

Data Array:
15.4 15.7 15.9 16.0 16.3 16.6
Daily Production
15.6 15.8 15.9 16.0 16.3 16.8
in Yards of 30
15.6 15.8 15.9 16.1 16.3 16.8
Carpet Looms
15.6 15.8 16.0 16.2 16.4 16.9

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 Advantages/ Disadvantages
of Data Array
Advantages:
o Quickly notice lowest and highest values in the data
o Easily divide data into sections
o Easily see values that occur frequently
o Observe variability in the data
Disadvantage:
o Cumbersome

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 Numerical Data Presentation
Numerical
Data

Ordered Frequency
Array Distributions

Histogram Polygon Ogive

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 Frequency Distribution
What Is a frequency distribution?
Table that organizes data into mutually exclusive classes
Why called “frequency” distribution?
Shows number of observations from data set that fall into
each class
What are the two classification schemes?
Discrete classes
Continuous classes

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 Constructing an Ungrouped
Frequency Distribution
Raw Data:
15.2 15.2 15.3 15.3 15.3 15.3 15.3 15.4 15.4 15.4
15.4 15.4 15.4 15.4 15.4 15.4 15.4 15.4 15.5 15.5
15.5 15.5 15.5 15.5 15.6 15.6 15.6 15.7 15.7 15.7

Class Tallies Frequency Relative Cumulative

_ _ _ Frequency Rel. Freq.
15.2 // 2 0.07 0.07
Frequency 15.3 //// 5 0.16 0.23
Distribution 15.4 //// //// / 11 0.37 0.60
15.5 6 0.20 0.80
15.6 //// / 3 0.10 0.90
15.7 /// 3 0.10 1.00
/// 30 1.00
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 Steps in Constructing a Grouped
Frequency Distribution

1. Determine the Class Interval Size

 Ideally, generate a frequency distribution with
10 class intervals. If this is not possible when
following the next series of steps, then rather
have more, but never fewer (i.e. less) than 10
class intervals.
 The size (width) of each class interval to be in
units of 1, 2, 3, 5, 10, 20, 30, 50, or multiples
(factor of 10) of these values.

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 Steps in Constructing a Grouped
Frequency Distribution

1. Determine the Class Interval Size

 To Achieve These Goals, Employ the Following
Procedure:
 Calculate the Range (R) of the Data Set
 Divide the Range by 10
 Select the Tentative Class Interval Size
(i.e. R/10). Make Certain That Your
Selection Will Result in At Least 10 Class
Intervals for Your Frequency Distribution.

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 Steps in Constructing a Grouped
Frequency Distribution

1. Determine the Class Interval Size

Example: Given the following data
100 74 84 95 95 110 99 87
100 108 85 103 99 83 91 91
84 110 113 105 100 98 100 108
100 98 100 107 79 86 123 107
87 105 88 85 99 101 93 99
 R = 123 - 74 = 49
 49/10 = 4.9
 Tentative Class Interval Size = 5

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 Steps in Constructing a Grouped
Frequency Distribution

2. Determine the Starting Point (First Class

Interval) of the Frequency Distribution
 Start the Frequency Distribution with a Class
Interval in Which the Following Guidelines
Apply:
The First Number of the Class Interval is a

Multiple of the Class Interval Size.
 The First Interval Includes the Lowest
Number or Value in the Data Set
For Our Example, the First Class Interval Would Be : 70 - 74
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 Steps in Constructing a Grouped
Frequency Distribution

Class Frequency Relative Freq. Cumulative

Relative
_ _ _ Frequency
70 - 74 1 .025 .025
75 - 79 1 Class Interval
.025Midpoint .050
80 - 84 3 (70 + 74)/2
.075 = 72 .125
Upper Limit
85 - 89 6 .150 .275
84
90 - 94 3 .075 .350
95 - 99 Lower
8 Limit .200 .550
100 - 104 8 80 .200 .750
105 - 109 6 .150 .900
110 - 114 3 .075 .975
115 - 119 0 .000 .975
120 - 124 1 _ .025 1.000
40 _
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 Numerical Data Presentation

Numerical
Data

Ordered Frequency
Array Distributions

Histogram Polygon Ogive

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 Histogram

Class Frequency

15.2-15.4 2
12 15.5-15.7 5
15.8-16.0 11
10
Frequency

16.1-16.3 6
8 16.4-16.6 3
16.7-16.9 3
6
4
2
0
15.2 15.5 15.8 16.1 16.4 16.7
15.4 15.7 16.0 16.3 16.6 16.9
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 Numerical Data Presentation

Numerical
Data

Ordered Frequency
Array Distributions

Histogram Polygon Ogive

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 Histogram

Class Frequency

15.2-15.4 2
12 15.5-15.7 5
15.8-16.0 11
10
Frequency

16.1-16.3 6
8 16.4-16.6 3
16.7-16.9 3
6
4
2
0
15.2 15.5 15.8 16.1 16.4 16.7
15.0 15.4
15.3 15.6
15.7 15.9
16.0 16.2
16.3 16.5
16.6 16.8
16.9 17.1
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 Numerical Data Presentation

Numerical
Data

Ordered Frequency
Array Distributions

Histogram Polygon Ogive

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 Ogive
Cumulative
Class Frequency
1.0
< 15.2 0.00
0.9 15.2-15.4 0.07
Cumulative Relative Frequency

0.8 15.5-15.7 0.23

15.8-16.0 0.60
0.7
16.1-16.3 0.80
0.6 16.4-16.6 0.90
0.5
16.7-16.9 1.00

0.4

0.3

0.2
0.1
0
15.2 15.3 15.6 15.9 16.2 16.5 16.8
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 Summary

1. Explained the difference between

samples and populations
2. Converted raw data into useful
information
3. Constructed and used data arrays and
frequency distributions

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