PRESENTATION OF DATA

1.1 INTRODUCTION

Once data has been collected, it has to be classified and organised in such
a way that it becomes easily readable and interpretable, that is, converted to
information. Before the calculation of descriptive statistics, it is sometimes a good
idea to present data as tables, charts, diagrams or graphs. Most people find
‘pictures’ much more helpful than ‘numbers’ in the sense that, in their opinion,
they present data more meaningfully.

In this course, we will consider the various possible types of presentation

of data and justification for their use in given situations.

1.2 TABULAR FORMS

This type of information occurs as individual observations, usually as a

table or array of disorderly values. These observations are to be firstly arranged in
some order (ascending or descending if they are numerical) or simply grouped
together in the form of a frequency table before proper presentation on diagrams
is possible.

1.2.1 Arrays

An array is a matrix of rows and columns of numbers which have been

arranged in some order (preferably ascending). It is probably the most primitive
way of tabulating information but can be very useful if it is small in size. Some
important statistics can immediately be located by mere inspection.

Without any calculations, one can easily find the

1. Minimum observation
2. Maximum observation
3. Number of observations, n
4. Mode
5. Median, if n is odd

1
 Example

2 7 8 11 15
16 18 19 19 19
23 23 24 26 27
29 33 40 44 47
49 51 54 63 68

Table 1.2.1

We can easily verify the following:

1. Minimum = 2
2. Maximum = 68
3. Number of observations = 25
4. Mode = 19
5. Median = 24

1.2.2 Simple tables

A table is slightly more complex than an array since it needs a heading

and the names of the variables involved. We can also use symbols to represent the
variables at times, provided they are sufficiently explicit for the reader.
Optionally, the table may also include totals or percentages (relative figures).

Example

DISTRIBUTION OF AGES OF DCDMBS STUDENTS

Age of student Frequency Relative frequency
19 14 0.0350
20 23 0.0575
21 134 0.3350
22 149 0.3725
23 71 0.1775
24 9 0.0225
Total 400 1.0000

Table 1.2.2

1.2.3 Compound tables

A compound table is just an extension of a simple in which there are more

than one variable distributed among its attributes (sub-variable). An attribute is
just a quality, property or component of a variable according to which it can be
differentiated with respect to other variables.

We may refer to a compound table as a cross tabulation or even to a

contingency table depending on the context in which it is used.

2
 Example

UNISA 2004 results for first-year DCDMBS students

COURSE
BA B Com B Sc

Pass 37 25 33

RESULT
Supp 5 10 4

Fail 11 8 27

Table 1.2.3

1.3 LINE GRAPHS

A line graph is usually meant for showing the frequencies for various
values of a variable. Successive points are joined by means of line segments so
that a glance at the graph is enough for the reader to understand the distribution of
the variable.

1.3.1 Single line graph

The simplest of line graphs is the single line graph, so called because it
displays information concerning one variable only, in terms of its frequencies.

Example

Using the data from the table below,

Age of Number of students

students (frequency)
19 14
20 23
21 134
22 149
23 71
24 8
Total 399

Table 1.3.1.1

we may generate the following line graph:

3
 Line graph for ages of students

160
140
Number of students 120
100
80
60
40
20
0
19 20 21 22 23 24

Age

Fig. 1.3.1.2

1.3.2 Multiple line graph

Multiple line graphs illustrate information on several variables so that

comparison is possible between them. Consider the following table containing
information on the ages of first-year students attending courses the University of
Mauritius (UoM), the De Chazal du Mée Business School (DCDMBS) and the
University of Technology of Mauritius (UTM) respectively.

AGE DISTRIBUTION OF STUDENTS AT

ACADEMIC INSTITUTIONS
Number of students
Age of students UoM DCDMBS UTM
19 14 8 2
20 23 52 23
21 134 101 152
22 149 133 98
23 71 54 34
24 8 18 13

Table 1.3.2.1

This data, when displayed on a multiple line graph, enables a comparison

between the frequencies for each age among the institutions (maybe in an attempt
to know whether younger students prefer to enrol for courses at one of these
institutions).

4
 Multiple line graph for age distribution at academic institutions

160

140
Number of students

120

100
UoM
80 DCDMBS
UTM
60

40

20

0
19 20 21 22 23 24

Age

Fig. 1.3.2.2

1.4 PIE CHARTS

A pie chart or circular diagram is one which essentially displays the

relative figures (proportions or percentages) of classes or strata of a given sample
or population. We should not include absolute values (class frequencies) on a pie
chart. Perhaps, this is the simplest diagram that can be used to display data and
that is the reason why it is quite limited in its presentation.

The pie chart follows the principle that the angle of each of its sectors
should be proportional to the frequency of the class that it represents.

Merits

1. It gives a simple pictorial display of the relative sizes of classes.

2. It shows clearly when one class is more important than another.
3. It can be used for comparison of the same elements but in two or more
different populations.

Limitations

1. It only shows the relative sizes of classes.

2. It involves calculation of angles of sectors and drawing them accurately.
3. It is sometimes difficult to compare sectors sizes accurately by eye.

5
1.4.1 Simple pie chart

Example

Using the same data from Table 1.2.3, but this time, including the total
number of students enrolled for BA, B Com and B Sc, we shall now display the
distribution of students for these three courses the population.

UNISA 2004 results for first-year DCDMBS students

COURSE
BA B Com B Sc

Pass 37 25 33
RESULT

Supp 5 10 4

Fail 11 8 27

TOTAL 53 43 64

Table 1.4.1.1

It is customary to include a legend to relate the colours or patterns used for

each sector to its corresponding data.

Distribution of students enrolled for BA, B Com and B Sc

BA
33%
B Com
40%
B Sc

27%

Fig. 1.4.1.2

6
1.4.2 Enhanced pie chart

This is just an enhancement (as the name says itself) of a simple pie chart
in order to lay emphasis on particular sector.

Example

Again, using the same data from Table 1.2.3, but this time, including the
total number of students enrolled for BA, B Com and B Sc, we shall now display
the distribution of students for these three courses the population.

UNISA 2004 results for first-year DCDMBS students

COURSE
BA B Com B Sc

Pass 37 25 33
RESULT

Supp 5 10 4

Fail 11 8 27

TOTAL 53 43 64

Table 1.4.1.3

It is customary to include a legend to relate the colours or patterns used for

each sector to its corresponding data. In Fig. 1.4.1.4, we show the importance of
the number of passes in B Sc.

Distribution of students enrolled for BA, B Com and B Sc

BA
33%
40% B Com

B Sc

27%

Fig. 1.4.1.4

7
1.5 BAR CHARTS

The bar chart is one of the most common methods of presenting data in a
visual form. Its main purpose is to display quantities in the form of bars. A bar
chart consists of a set of bars whose heights are proportional to the frequencies
that they represent.

Note that the figure may be drawn horizontally or vertically. There are
different types of bar charts, depending on the number of variables and the type of
information to be displayed.

General merits

1. The quantities can be easily read in terms of heights of the bars.

2. Comparison can be made between values of a variable.
3. It can be used even for non-numerical data.

General limitations

1. The class intervals must be equal in the distribution.

2. It cannot be used for continuous variables.

Note Any additional merit or limitation for each type of bar chart will be
mentioned in its corresponding section.

1.5.1 Simple bar chart

The simple bar chart is used for the case of one variable only. In Table
1.5.1.1 below, our variable is age.

Example

Age of Number of students

students (frequency)
19 14
20 23
21 134
22 149
23 71
24 8
Total 399

Table 1.5.1.1

8
 Simple bar chart for age distribution of students

160
140

Number of students
120
100
80
60
40
20
0
19 20 21 22 23 24

Age

Fig. 1.5.1.2

1.5.2 Multiple bar chart

The multiple bar chart is an extension of a simple bar chart when there are
quantities of several variables to be displayed. The bars representing the
quantities for the different variables are piled next to one another for each
attribute.

Example

UNISA 2004 results for first-year DCDMBS students

COURSE
BA B Com B Sc

Pass 37 25 33
RESULT

Supp 5 10 4

Fail 11 8 27

TOTAL 53 43 64

Table 1.5.2.1

Fig. 1.5.2.2 shows how an array of frequencies may be very easily

displayed on a multiple bar chart.

9
 Multiple bar chart showing the results for BA, B Com and B Sc

40

35

30

25 Pass
Results

20 Supp
15 Fail

10

0
BA B Com B Sc
Courses

Fig. 1.5.2.2

Merits

1. Comparison may be made among components of the same variable.

2. Comparison is also possible for the same component across all variables.

Limitations

1. The figure becomes very cumbersome when there are too many variables
and components.
2. Only absolute, not relative, values are available – it is much easier to
compare component percentages across variables.

1.5.3 Component bar chart

In this type of bar chart, the components (quantities) of each variable are
piled on top of one another.

10
 Example

UNISA 2004 results for first-year DCDMBS students

COURSE
BA B Com B Sc

Pass 37 25 33

RESULT
Supp 5 10 4

Fail 11 8 27

TOTAL 53 43 64

Table 1.5.2.1

Component bar chart showing the results for each course

70

60

50
Fail
Results

40
Supp
30
Pass
20

10

0
BA B Com B Sc

Courses

Fig. 1.5.2.2

Merits

1. Comparison may be made among components of the same variable.

2. Comparison is also possible for the same component across all variables.
3. It saves space as compared to a multiple bar chart.

Limitations

1. Only absolute, not relative, values are available – it is much easier to

compare component percentages across variables.
2. It is awkward to compute the quantities for individual components.

11
1.5.4 Percentage (component) bar chart

A percentage (component) bar chart displays the components (quantities)

percentages of each variable, piled on top of one another. This is a refinement of
the component bar chart since, irrespective of the number of components, the
heights of the bars are always kept to a given value (100%).

Fig. 1.5.4 presents the same data as for the previous example.

Percentage bar chart showing the results for each course

100%
90%
80%
70%
Fail
Results

60%
50% Supp
40%
Pass
30%
20%
10%
0%
BA B Com B Sc
Courses

Fig. 1.5.4

Merits

1. Comparison may be made among components of the same variable.

2. Comparison is also possible for the same component across all variables.
3. It saves space as compared to a multiple bar chart.

Limitations

1. Only relative, not absolute, values are available – it is not possible to

compute quantities unless the totals are known.
2. It is awkward to compute the percentages for individual components.
3. Same percentages do not mean necessarily mean same quantities (this may
be calculated unless totals are known).

12
1.6 HISTOGRAMS

Out of several methods of presenting a frequency distribution graphically,

the histogram is the most popular and widely used in practice. A histogram is a set
of vertical bars whose areas are proportional to the frequencies of the classes
that they represent.

While constructing a histogram, the variable is always taken on the x-axis

while the frequencies are on the y-axis. Each class is then represented by a
distance on the scale that is proportional to its class interval. The distance for
each rectangle on the x-axis shall remain the same in the case that the class
intervals are uniform throughout the distribution. If the classes have different
class intervals, they will obviously vary accordingly on the x-axis. The y-axis
represents the frequencies of each class which constitute the height of the
rectangle.

The histogram should be clearly distinguished from the bar chart. The
most striking physical difference between these two diagrams is that, unlike the
bar chart, there are no ‘gaps’ between successive rectangles of a histogram. A bar
chart is one-dimensional since only the length, and not the width, matters whereas
a histogram is two-dimensional since both length and width are important.

A histogram is mainly used to display data for continuous variables but

can also be adjusted so as to present discrete data by making an appropriate
continuity correction. Moreover, it can be quite misleading if the distribution has
unequal class intervals.

1.6.1 Histograms for equal class intervals

Example

Consider the set of data in Fig. 1.6.1.1, which represents the ages of
workers of a private company. The real limits and mid-class values have already
been computed.

Age group Real limits Mid-class value Frequency

21 – 25 20.5 – 25.5 23 5
26 – 30 25.5 – 30.5 28 12
31 – 35 30.5 – 35.5 33 23
36 – 40 35.5 – 40.5 38 39
41 – 45 40.5 – 45.5 43 32
46 – 50 45.5 – 50.5 48 21
51 – 55 50.5 – 55.5 53 9
56 – 60 55.5 – 60.5 58 2
Total 143

Table 1.6.1.1

13
 The data is presented on the histogram in Fig. 1.6.1.2.

Presentation of grouped data (uniform class interval) on a histogram

Histogram for grouped data

45

40
Number of workers (frequency)

35

30

25

20

15

10

0
[20.5, [25.5, [30.5, [35.5, [40.5, [45.5, [50.5, [55.5,
25.5) 30.5) 35.5) 40.5) 45.5) 50.5) 55.5) 60.5)
Age group of w orkers

Fig. 1.6.1.2

1.6.2 Histograms for unequal class intervals

When class intervals are unequal, a correction must be made. This consists
of finding the frequency density for each class, which is the ratio of the frequency
to the class interval. The frequency densities now become the actual heights of
the rectangles since the areas of the rectangles should be proportional to the
frequencies.

Frequency
Frequency density =
Class interval

Example

The temperatures (in degrees Fahrenheit) were simultaneously recorded in

various cities in the world at a specific moment. Table 1.6.2.1 below gives the
thermometer readings.

14
 Temperature Class Frequency Frequency
intervals density
[0 – 5) 5 3 0.60
[5 – 10) 5 6 1.20
[10 – 20) 10 10 1.00
[20 – 30) 10 15 1.50
[30 – 40) 10 10 1.00
[40 – 50) 10 5 0.50
[50 – 70) 20 5 0.25
Total 54

Table 1.6.2.1

Note [20 – 30) means ‘from 20 to 30, including 20 but excluding 30’.

Presentation of grouped data (unequal class intervals) on a histogram

Histogram (unequal class intervals) using frequency density

1.6
1.4
1.2
Frequency density

1
0.8
0.6
0.4
0.2
0
0 10 20 30 40 50 60 70 80
Temparature (degrees Fahrenheit)

Fig. 1.6.2.2

1.7 FREQUENCY POLYGONS

A frequency polygon is a graph of frequency distribution. There are

actually two ways of drawing a frequency polygon:

1. By first drawing a histogram for the data

2. Direct construction

15
1.7.1 Drawing a histogram first

This is indeed a very effective in which a frequency polygon may be

constructed. Draw a histogram of the given data and then join, by means of
straight lines, the midpoints of the upper horizontal side of each rectangle with the
adjacent ones. It is an accepted practice to close the polygon at both ends of the
distribution by extending the lines to the base line (x-axis). When this is done, two
hypothetical classes with zero frequencies must be included at each end. This
extension is made with the objective of making the area under the polygon equal
to the area under the corresponding histogram.

Example

Temperature Frequency
[0 – 10) 2
[10 – 20) 7
[20 – 30) 11
[30 – 40) 17
[40 – 50) 9
[50 – 60) 3
[60 – 70) 1
Total 50

Table 1.7.1.1

Presentation of grouped data on a histogram and frequency polygon

Histogram and frequency polygon for grouped data

18

16

14

12
Frequency

10

0
-10 0 10 20 30 40 50 60 70 80

Temperature (degrees Fahrenheit)

Fig. 1.7.1.2

16
1.7.2 Direct construction

The frequency polygon may also be directly drawn by finding the points
on the figure. The x-coordinate of each point is the mid-class value of the cell
whilst the y-coordinate is the frequency of the cell (or frequency density if class
intervals are unequal). Successive points are then linked by means of line
segments.

In that state, the polygon would be ‘hanging in the air’, that is, it would
not touch the x-axis. To satisfy this ultimate requirement, we determine its left
(right) x-intercept by respectively subtracting (adding) the class intervals of the
first (last) classes from the x-intercept of the first (last) point.

Example

Using the data from Table 1.6.2.1, we have the following polygon:

Presentation of grouped data on a frequency polygon

Frequency polygon for grouped data

45
Number of students (frequency)

40
35
30
25
20
15
10
5
0
20.5 – 25.5 – 30.5 – 35.5 – 40.5 – 45.5 – 50.5 – 55.5 –
25.5 30.5 35.5 40.5 45.5 50.5 55.5 60.5
Age of students

Fig. 1.7.2

A frequency polygon sketches an outline of the data pattern more clearly.

In fact, it is the refinement of a histogram, as it does not assume that the
frequencies of observations within a class are equal. The polygon becomes
increasingly smooth and curve-like as we increase the number of classes in a
distribution.

17
1.8 OGIVES

An ogive is the typical shape of a cumulative frequency curve or polygon.

It is generated when cumulative frequencies are plotted against real limits of
classes in a distribution. There are two types of ogives: ‘less than’ and ‘more
than’. Before differentiating between these two, let us start by defining
cumulative frequency.

1.8.1 Cumulative frequency

This self-explanatory term means that the frequencies of classes are

accumulated over the entire distribution. We define the two types of cumulative
frequencies as follows:

Definition 1

The ‘less than’ cumulative frequency of a class is the total number of

observations, in the entire distribution, which are less than or equal to the upper
real limit of the class.

Definition 2

The ‘more than’ cumulative frequency of a class is the total number of

observations, in the entire distribution, which are greater than or equal to the
lower real limit of the class.

Note For the rest of this course, we will denote ‘cumulative frequency’ by CF.

Example

Age Real limits Frequency ‘Less than’ ‘More than’

group CF CF
21 – 25 20.5 – 25.5 5 5 143
26 – 30 25.5 – 30.5 12 17 138
31 – 35 30.5 – 35.5 23 40 126
36 – 40 35.5 – 40.5 39 79 103
41 – 45 40.5 – 45.5 32 111 64
46 – 50 45.5 – 50.5 21 132 32
51 – 55 50.5 – 55.5 9 141 11
56 – 60 55.5 – 60.5 2 143 2
Total 143

Table 1.8.1

18
 Note Careful inspection of Table 1.8.1 reveals that the ‘less than’ CF of a class
is also the overall rank of the last observation in that class. This is a very
important finding since it will be of tremendous help to us when
calculating percentiles.

1.8.2 ‘Less than’ cumulative frequency ogive

The ‘less than’ CF ogive is used to determine the number of observations

which fall below a given value. We can thus use it to estimate the value of the
median and other percentiles by interpolation on the ogive itself.

The difference between a CF curve and a CF polygon is that, for the

polygon, successive points are linked by means of line segments whereas, for the
curve, we fit a smooth curve of best fit through the points.

The points on a ‘less than’ CF ogive have upper real limits for x-
coordinates and ‘less than’ CF for y-coordinates. This is quite easy to remember:
‘less than’ CFs are defined according to upper real limits!

If we use the data from Table 1.8.1, the following ‘less than’ CF curve is
obtained.

'Less than' cumulative frequency curve for age

160

140

120
'Less than' CF

100

80

60

40

20

0
20.5 25.5 30.5 35.5 40.5 45.5 50.5 55.5 60.5

Age (upper real limits)

Fig. 1.8.2

Note The ‘less than’ CF ogive has an x-intercept equal to the lower real limit of
the first class.

19
1.8.3 ‘More than’ cumulative frequency ogive

The ‘more than’ CF ogive is used to determine the number of observations

which fall above a given value. We can also use it to estimate the value of the
median and other percentiles by interpolation on the ogive itself.

The points on a ‘more than’ CF ogive have lower real limits for x-
coordinates and mores than’ CF for y-coordinates. Remember that ‘more than’
CFs are defined according to lower real limits!

Again, if we use the data from Table 1.8.1, the following ‘more than’ CF
curve is obtained.

'More than' cumulative frequency ogive for age

160

140

120
'More than' CF

100

80

60

40

20

0
20.5 25.5 30.5 35.5 40.5 45.5 50.5 55.5 60.5

Age (lower real limits)

Fig. 1.8.3

Note The ‘less than’ CF ogive has an x-intercept equal to the upper real limit of
the last class.

The main use of cumulative frequency ogives is to estimate percentiles,

more specifically the median and the lower and upper quartiles. However, we may
also estimate the percentage of the distribution that falls below or above a given
value. Alternatively, we may find a value above or below which a certain
percentage of the distribution lies.

It is generally advisable to use a CF curve, instead of a CF polygon, since

it has been found to yield more realistic and reliable estimates for percentiles.

20
1.9 STEM AND LEAF DIAGRAMS

Stem and leaf diagrams, or stemplots, are used to represent raw data, that
is, individual observations, without loss of information. The ‘leaves’ in the
diagram are actually the last digits of the values (observations) while the ‘stems’
are the remaining part of the values. For example, the value 117 would be split as
‘11’, the stem, and ‘7’, the leaf. By splitting all the values and distributing them
appropriately, we form a stemplot. The example in Section 1.9.1 would be a better
illustration of the above explanation.

1.9.1 Simple stem and leaf plot

Example

The following are the marks (out of 100) obtained by 20 students in an

assignment:

84 17 38 45 47
53 76 54 75 22
66 65 55 54 51
44 39 19 54 72

Table 1.9.1.1

In the first instance, the data is classified in the order that it appears on a
stemplot (see Fig. 1.9.1.2). The leaves are then arranged in ascending order (see
Fig. 1.9.1.3) – this is indeed a very practical way of arranging a set of data in
order if the number of observations is not very large.

Fig. 1.9.1.2 Fig. 1.9.1.3

Stem Leaf Stem Leaf

1 7 9 1 7 9
2 2 2 2
3 8 9 3 8 9
4 5 7 4 4 4 5 7
5 3 4 5 4 1 4 5 1 3 4 4 4 5
6 6 5 6 5 6
7 6 5 2 7 2 5 6
8 4 8 4

Key 1|7 means 17

Note A stemplot must always be accompanied by a key in order to help the

reader interpret the values.

21
1.9.2 Back-to-back stemplots

These stemplots are mainly designed to compare two distributions in terms

of spread and skewness.

Example

Table 1.9.2.1 shows the results obtained by 20 pupils in French and

English examinations.

FRENCH 75 69 58 58 46 44 32 50 53 78
81 61 61 45 31 44 53 66 47 57
ENGLISH 52 58 68 77 38 85 43 44 56 65
65 79 44 71 84 72 63 69 72 79

Table 1.9.2.1

Using the same classification and ordering principles as in the previous

example, we have the following back-to-back stemplot:

Key (French) French English Key (English)

8|5 means 58 6|3 means 63
2 1 3 8
7 6 5 4 4 4 3 4 4
8 8 7 3 3 0 5 2 8 6
9 6 1 1 6 3 5 5 8 9
8 5 7 1 2 2 7 9 9
1 8 4 5

Fig. 1.9.2.2

From Fig. 1.9.2.2, we can deduce that pupils performed better in English
than in French (since they had higher marks in English given the negative
skewness of the distribution).

Merits

1. There is no loss of information from the original data.

2. All descriptive statistics can be exactly calculated or located.
3. If rotated through an angle of 900 anticlockwise, the figure resembles a bar
chart from which the distribution (spread and skewness) of observations
can be readily observed.
Limitations
1. The figure becomes too lengthy if there are too many observations.
2. It is applicable only to discrete data.

22
1.10 BOX AND WHISKERS DIAGRAMS

Box and whiskers diagrams, common known as boxplots, are specially

designed to display dispersion and skewness in a distribution. The figure consists
of a ‘box’ in the middle from which two lines (whiskers) extend respectively to
the minimum and maximum values of the distribution. The position of median is
also indicated in the middle of the box. A boxplot can be drawn either
horizontally or vertically on graph. One axis is scaled to accommodate for the
values of the observations while the other has no scale given that the width of the
box is irrelevant. The boxplot is applicable for both discrete and continuous data.

A boxplot is drawn according to five descriptive statistics:

1. Minimum value
2. Lower quartile
3. Median
4. Upper quartile
5. Maximum value

Note Calculation of these statistics will be explained in detail in the chapter on

Descriptive Statistics. We will simply label the positions of these values
on the diagram.

Example

Using the data from Table 1.9.1.1 in Section 1.9.1, we have the following
five summary statistics:

Minimum 17
Lower quartile 40.25
Median 53.5
Upper quartile 65.75
Maximum 84

Fig. 1.10.1

O 10 20 30 40 50 60 70 80 90 100

Fig. 1.10.2 Number of marks

23
1.10.1 What information can be gathered from a boxplot?

Apart from the five descriptive statistics, we can deduce the following
about the distribution:

1. The range – the numerical difference between the maximum and the
minimum values.
2. The inter-quartile range – the difference between the upper and lower
quartiles. It measures the dispersion for the middle 50% of the distribution.
3. The skewness of the distribution – if the median is closer to the lower
(upper) quartile, the distribution is positively (negatively) skewed. If it is
exactly in the middle of those quartiles, the distribution is symmetrical.

1.10.2 Using the boxplot for comparison

Several boxplots may even be plotted on the same axes for comparison
purposes. We might wish to compare marks obtained by students in French and
English so as to study any similarities and differences between their performances
in these subjects.

French

English

O 10 20 30 40 50 60 70 80 90 100

Number of marks
Fig. 1.10.3

From Fig. 1.10.3, the following can be observed:

1. In general, students have scored higher marks in French than in

English (the ‘box’ is more to the right).
2. The range for both subjects is the same.
3. The distribution for French is negatively skewed but that for English
is positively skewed.

24
1.11 SCATTER DIAGRAMS

Scatter diagrams, also known as scatterplots, are used to investigate the

relationship between two variables. If it is suspected that a causal (cause-effect)
relationship exists between two variables, inspection of a scatterplot may well
provide us with an answer. In such a relationship, we normally have an
independent (explanatory) variable, also known as a predictor, and a dependent
(response) variable. Detailed explanations of these terms will be given in the
section on Regression.

Just imagine that we wish to know whether the length of a metal rod varies
with temperature. We may choose to record the length of the rod at various
temperatures. It is clear here that ‘temperature’ is the independent variable and
‘length’ is the dependent one. These data are kept in the form of a table in which
‘temperature’ and ‘length’ are labelled as X and Y respectively. We next plot the
corresponding pairs of readings in (x, y) form on a graph, the scatter diagram. Fig.
1.11.2 is an example of a scatterplot.

Example

Temperature (0C) 13 50 63 58 20 78 39 55 29 62
Length (cm) 5.10 5.68 5.85 5.74 5.25 5.98 5.59 5.73 5.46 5.81

Table 1.11.1

Scatterplot of length of metal rod at various temperatures

6.1
6
5.9
5.8
5.7
Length

5.6
5.5
5.4
5.3
5.2
5.1
5
0 10 20 30 40 50 60 70 80 90

Temperature

Fig. 1.11.2

25
 A scatterplot enables us to verify whether there does exist a causal
relationship between two variables by checking the pattern of points. In fact, it
even reveals the nature of the relationship, that is, if it is linear or non-linear, by
the shape of the pattern. Scatter diagrams are especially very useful in regression
and correlation analyses.

1.12 TIME SERIES HISTORIGRAMS

A time series is a series of figures which show the evolution of a variable

over time. The horizontal axis is labelled as the time axis instead of the usual x-
axis. The graph of a time series is known as a historigram. Points on the graph are
plotted with x-coordinates as time units while the y-coordinates are the values
assumed by the variable at those particular times. Successive points are then
linked by means of straight lines (similar to a line graph, Section 1.3).

Example

The following data represent the annual sales of petrol in Iraq in millions
of dollars for the period 1985-96.

Year (19_) 85 86 87 88 89 90 91 92 93 94 95 96
Sales ($m) 600 840 420 720 640 860 420 740 670 900 430 760

Table 1.12.1

Time series for annual sales of petrol

1000
900
800
700
Sales ($m)

600
500
400
300
200
100
0
85 86 87 88 89 90 91 92 93 94 95 96

Year

Fig. 1.12.2

26
 A time series shows the trend, cycle and seasonality in the behaviour of a
variable. It is a very sophisticated means of forecasting the values of the variable
on the assumption that history repeats itself.

1.13 LORENZ CURVES

The Lorenz curve is a device for demonstrating the evenness, by verifying

the degree of concentration of a property, of a distribution. A common application
of the Lorenz curve is to show the distribution of wealth in a population. The
explanation for the construction of such a diagram is given by means of the
example below.

Example

Table 1.13.1 below refers to tax paid by people in various income groups
in a sample. Construct a Lorenz curve for the data and comment on it.

Annual gross income Number of people Tax paid ($)

Less than 6 000 140 60 000
6 000 and less than 8 000 520 200 000
8 000 and less than 10 000 620 660 000
10 000 and less than 14 000 440 700 000
14 000 and less than 20 000 240 740 000
20 000 and less than 32 000 40 680 000
TOTAL 2000 3 040 000

Table 1.13.1

The above table now should be altered in such a way that relative
cumulative frequencies may now be displayed for both variables, that is, ‘number
of people’ and ‘tax paid’. We must change the labels for the first column,
determine the cumulative frequencies and then convert these to percentages
(proportions) as shown in Table 1.13.2.

Annual gross Number of Proportion Proportion

Tax paid ($)
income people of people of tax
Less than 6 000 140 60 000 0.07 0.0197
Less than 8 000 660 260 000 0.33 0.0855
Less than 10 000 1280 920 000 0.64 0.3026
Less than 14 000 1720 1 620 000 0.86 0.5329
Less than 20 000 1960 2 360 000 0.98 0.7763
Less than 32 000 2000 3 040 000 1.00 1.0000

Table 1.13.2

27
 Next, we plot one relative cumulative frequency against another. It does
not really matter which axis is to be used for which variable, the reason being that
we only wish to observe the departure of the Lorenz curve from the line of
uniform distribution. On graph, this is simply the line y = x, which represents the
ideal situation where, for our example, the proportion of tax paid is equally
distributed among the various classes of income earners. This line is also to be
drawn on the same graph in order to make the ‘bulge’ of the Lorenz curve more
visible. This is clearly illustrated in Fig. 1.13.3 below.

Lorenz curve for the distribution of taxpayers

0.9

0.8 Line of
uniform
distribution
0.7
Proportion of tax paid

0.6

0.5

0.4

0.3

0.2

0.1

0
0 0.2 0.4 0.6 0.8 1

Proportion of taxpayers

Fig. 1.13.3

The further the curve is from the line of uniform distribution, the more
uneven is the distribution. It can be observed, for example, that approximately
36% of the population of taxpayers pays only 10% of the total tax. This shows a
considerable degree of unevenness in the population. In an ideal situation, 36% of
the population would have paid 36% of the total tax.

The Lorenz curve is normally used in economical contexts and its

interpretation is very useful whenever there is an imbalance somewhere in the
economic sector (for example, distribution of wealth in a population).

28
1.14 Z-CHARTS

The usefulness of a Z-chart is for presenting business data. It shows the

following:

1. The value of a variable plotted against time over the year.

2. The cumulative sum of values for that variable over the year to
date.
3. The annual moving total for that variable.

The annual moving total is the sum of the values of the variable for the
12-month period up to the end of the month under consideration. A line for the
budget for the year to data may be added to a Z-chart, for comparison with the
cumulative sum of actual values.

Example

The sales figures for a company for 2002 and 2003 are as follows.

Month 2002 sales ($m) 2003 sales ($m)

January 7 8
February 7 8
March 8 8
April 7 9
May 9 8
June 8 8
July 8 7
August 7 8
September 6 9
October 7 6
November 8 9
December 8 9
90 97

Table 1.14.1

Table 1.14.2 will now include the cumulative sales for 2003 and the
annual moving total, that is, the 12-month period will be updated from the period
Jan-Dec 2003 to Feb 2003-Jan 2004, then Mar 2003- Feb 2004 and so on until
Jan-Dec 2004, whilst these total sales will be continuously calculated and
recorded.

Note Z-charts do not have to cover 12 months of a year. They could, for
example, also be drawn for four quarters of a year or seven days of a
week.

29
 2002 sales 2003 sales Cumulative sales Annual moving
Month
($m) ($m) 2003 ($m) total ($m)
January 7 8 8 91
February 7 8 16 92
March 8 8 24 92
April 7 9 33 94
May 9 8 41 93
June 8 8 49 93
July 8 7 56 92
August 7 8 64 93
September 6 9 73 96
October 7 6 79 95
November 8 9 88 96
December 8 9 97 97

Table 1.14.2

Fig. 1.14.3

30
Interpretation of Z-charts

The popularity of Z-charts in practical applications derives from the

wealth of information which they can contain.

1. Monthly totals show the monthly results at a glance with any seasonal
variations.
2. Cumulative totals show the performance to data and can be easily compared
with planned and budgeted performance by superimposing the budget line.
3. Annual moving totals compare the current levels of performance with those
of the previous year. If the line is rising, then this year’s monthly results are
better than the results of the corresponding month last year. The opposite
applies if the line is falling. The annual moving total line indicates the long-
term trend of the variable, whether rising, falling or steady.

Note While the values of the annual moving total and the cumulative values are
plotted on month-end positions, the values for the current monthly figures
are plotted on mid-month positions. This is because monthly figures
represent achievement over a particular month whereas the annual moving
totals and the cumulative values represent achievement up to a particular
month end.

31