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Quantitative Techniques:
Introduction, Data
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Classification
UNIT 1 QUANTITATIVE
TECHNIQUES:
INTRODUCTION, DATA
COLLECTION AND
CLASSIFICATION
Structure
1.0 Unit Objectives
1.1 Introduction
1.2 Use of Quantitative Techniques
1.3 Meaning and Types of Quantitative Techniques
1.4 Statistics in Business
1.5 The Concept of Statistics
1.6 Data Collection and Data Organization
1.0 UNIT OBJECTIVES
After going through this unit, you will be able to:
Understand what quantitative techniques are
Discuss the significance of quantitative techniques
Explain the types of quantitative techniques
Differentiate between descriptive statistics and inferential statistics
Explain the various methods of data collection
Describe frequency distribution
1.1 INTRODUCTION
Decision-making is an essential part of management. Managers, at all levels, make
many decisions every day. Some decisions are routine and require little thought. Many,
however, are more complex as a manager has to co-ordinate limited human and capital
resources in the most efficient manner to achieve the given objectives of the organization.
This applies to all types of business organizations (a factory, a farm, a small business
enterprise or an MNC). A manager has to determine the objectives, analyse the existing
situation, seek alternatives, take decisions and implement them. Therefore, to carry out
the key managerial functions of planning, organizing, directing and controlling, the
management is engaged in a continuous process of decision-making.
Traditionally, decision-making has been considered as an art and/or a talent based
on inheritance, individual judgements and experience. However, in an increasingly
competitive, complex and fast changing world, the decision-makers are expected to
take fast and hopefully appropriate decisions on the basis of logic and hard analysis, and
not merely on judgment and experience.
As the complexity increases, management becomes more of a science than an
art. There is a greater need for supplementing the art of decision-making by systematic
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and scientific methods. Quantitative Analysis is the scientific approach to managerial
decision-making and Quantitative Techniques are essentially helpful supplements to
judgment and intuition.
1.2 USE OF QUANTITATIVE TECHNIQUES
The quantitative approach to decision-making is assuming an increasing degree of
importance in the theory and practice of management. The formal study and application
of quantitative techniques to practical decision-making started in the 20th century. During
World War II many new scientific and quantitative techniques were developed to assist
the military. These new developments were so successful that after World War II
companies started using similar techniques in managerial decision-making and planning.
Modern management is applying Quantitative Techniques to aid the process of decision-
making in an ever increasing measure. Besides traditional business areas, such as
production, finance and marketing, it is now possible and desirable to apply the quantitative
approach to areas, such as social responsibility, health care, ecology, public policy,
international relations, individual and group behaviour , organizational structure and
behaviour. Today, many organizations employ staff comprising operations research or
management science personnel or consultants to apply the principles of scientific
management to problems and opportunities. This is due to the fact that an intelligent
application of the appropriate tools can reduce an otherwise unwieldy and complex
problem to one of manageable dimensions. However, Quantitative Techniques are
expected only to supplement, and not to supplant the managers sense of decision-
making. A large number of business problems, in the relatively recent past, have been
given a quantitative representation with considerable degree of success.
Numerous professional journals regularly provide details of successful application
of such techniques to specific business problems. A number of researchers have tried to
establish the use that companies make of quantitative methods.
A research team undertook an investigation of the use of techniques by businesses
and their effectiveness in terms of organizational performance, across Europe. They
sent questionnaires to the chief executives of a sample of businesses in a number of
countries. Firms were asked whether Quantitative Techniques were used by the business
(with a detailed list of over 30 common techniques provided).The respondents were, by
and large, managers in these organizations, not mathematical or statistical specialists.
Two thirds (66%) of firms responding indicated they used at least some of the techniques.
Firms were also asked to comment on the perceived usefulness of the techniques for
their respective businesses.
Around 90% of firms using these techniques felt that these techniques were
useful (essential (24%), very useful (24%), useful (42%)). Only 8.7% of firms using
these techniques felt these techniques to be of little use and 1.3% felt there was no use
of these techniques.
Investigation of individual techniques revealed that basic statistics had been the
most popular quantitative technique as 89% of the firms were using statistical techniques.
Firms not using these techniques were also asked the reasons why such techniques
were not used. 39% of the firms not using these techniques responded that one of the
factors contributing to non-use was insufficient training and education of staff in the use
of these techniques.
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There is extensive empirical evidence that the relevant application of such
techniques has resulted in significant improvements in efficiency, particularly at the micro
economic level, and has led to improvements in decision-making in profit and non-profit
organizations. This is a stark illustration of why managers need to develop skills and
awareness in the quantitative area. Not to do so may put you as a manager and your
organization at a severe competitive disadvantage.
1.3 MEANING AND TYPES OF QUANTITATIVE
TECHNIQUES
The quantitative analysis approach consists of defining a problem, developing a model,
acquiring input data, developing a solution and analysing the results. The approach uses
concepts and/tools of mathematics and statistics, which provide the decision-maker with
systematic and powerful means of analysis and help in the decision-making process. In
other words, all the mathematical and statistical techniques used by managers in all
types of business organizations to help them with decision-making are called Quantitative
Techniques. These techniques are based on quantitative data, which provide the decision-
maker with a systematic and powerful means of analysis and helps in exploring business
policies. If you are studying business or are interested in any aspect of business you
need to know about quantitative methods as business is all about quantities, quantities of
goods produced and services provided, quantities of inputs and costs, quantities of revenues
and profit, and so on. Quantitative techniques offer the manager, a method of analysing
a problem (using proven techniques), providing information about that problem and of
assessing the potential outcomes from different decisions. These techniques are
particularly relevant to problems of complex business enterprises. They can broadly be
put under two groups (a) Statistical Techniques and (b) Operations research/Programming
Techniques.
Statistics is the science concerned with the collection organization, presentation,
analysis, and interpretation of data. Statistical Techniques involve analysis of the collected
data for the purpose of summarizing the information. The field of statistics provides
methods for collecting, analysing and meaningfully interpreting data.
Statistics has, as of now, established itself as a generic and versatile subject
of study. The more one gets to know of it, the more one imbibes its subtle impact in
terms of the mental ability to draw fairly valid conclusions even from limited data.
It is precisely owing to this reason that the applications of statistical methods have
fast spread its tentacles to the various important areas of human interest.
R.P. Hooda
Operations Research (OR) techniques, also known as Programming Techniques,
are used for building an information model for the available data. Building of information
model refers to quantifying the factors affecting the business with the help of different
variables and parameters, and describing interrelationships between these different
variables in the form of mathematical equations. Based upon these equations, an optimal
solution for the business-related problems is obtained to get maximum profits out of
minimum costs. These techniques include a wide variety of techniques, such as linear
programming, theory of games, simulation and decision theory.
The techniques we shall be introducing are statistical techniques used by managers
in a wide variety of business organizations.
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1.4 STATISTICS IN BUSINESS
The use of statistical methods coupled with sound organization practice can be a
key to good management and effective leadership in business settings.
Richard A. Johnson and Dean W. Wichern
The complexity of the business environment necessitates the business decisions
to be based not on judgment and experience but on systematic and scientific methods
based on data. Decisions have to be based upon data which shows relationships, indicates
trend, and shows rates of change in various relevant variables. The careful generation
and analysis of data reduces uncertainty and leads to rapid learning and opportunities for
improvement that are generally not apparent from intuition or reports. Managers, at all
levels, make many decisions every day. Some decisions are routine and require little
thought. Many, however, are more complex and depend on numbers to suggest and
justify subsequent course of action. Statistics deals with ways of organizing, summarizing
and describing quantifiable data and methods of drawing inferences and generalizing
them. We may state that Statistics is the science concerned with the collection,
organization, presentation, analysis and interpretation of data. Statistical techniques involve
analysing the collected data for the purpose of summarizing the information. The field of
statistics provides methods for collecting, analysing and meaningfully interpreting data.
From a management perspective, the ultimate goal of the firm is to be able to
offer desirable products and services as economically as possible. To accomplish this
goal, all managers, may not have to be statisticians. However, they need to know the
techniques of statistics. The two main duties of a professional, to make decisions and to
solve problems, can be accomplished through the application of statistical procedures as
virtually every area of business uses statistics in decision-making. Reason being Business
is all about quantities: quantities of goods produced and services provided, quantities of
inputs and costs, quantities of revenues and profit, and so on. Efforts at quality control,
cost minimization, product and inventory mix, and a host of other business matters can
be effectively managed by using proven statistical procedures. For those in marketing
research, statistics is of invaluable assistance in determining whether a new product is
likely to prove successful. Statistics is also useful in the evaluation of investment
opportunities by financial consultants. Accountants, personnel managers, and
manufacturers, all find unlimited opportunities to utilize statistical analysis. Even the
medical researcher, concerned about the effectiveness of a new drug, finds statistics a
helpful ally. Through the application of precise statistical procedures, it is possible to
predict the future with some degree of accuracy. Any business firm faced with competitive
pressures can benefit considerably from the ability to anticipate business conditions
before they occur. If future sales is estimated with a reliable degree of accuracy,
management can easily take important decisions regarding inventory levels, raw material,
orders, employment requirements, and other aspect of business operations.
1.5 THE CONCEPT OF STATISTICS
Statistics deals with ways of organizing, summarizing and describing quantifiable data
and methods of drawing inferences and generalizing upon them (Jim Fowler, Lou Cohen,
Phil Jarvis in Practical Statistics for Field Biology). Websters third new international
dictionary defines statistics as a science of dealing with the collection, organization,
presentation, analysis and interpretation of data.
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The word statistics may be defined in two different but interrelated ways: (i) As
a plural noun; (ii) As a singular noun.
Statistics as a plural noun refers to numerical data (the factual data itself) arising
in any sphere of human experience. It is in this sense that the term is used when our
daily newspapers give birth-death statistics, crime statistics or soccer statistics of Calcutta
or when the food minister quotes statistics of sugar exports.
Used as singular, Statistics is a study of the methods, theories and techniques by
means of which the collected descriptions are summarized and interpreted.
Thus, statistics, in totality, refers to statistical (numerical) data and the method of
obtaining and analysing data.
1.5.1 Subdivisions within Statistics/Functions of Statistics
Managers apply some statistical techniques to virtually every branch of public and private
enterprise. These techniques are so diverse that statisticians commonly separate them
into two broad categories: Descriptive statistics and Inferential statistics.
(i) Descriptive Statistics
Descriptive statistics involves describing some characteristics of the numerical data. If
a business analyst is using data gathered on a group to describe or reach conclusions
about that same group, the statistics are called descriptive statistics. It deals with the
collection, tabulation and presentation of data and the calculation of measures which
describe the data in various ways. It summarizes information in such a manner as to
make it more usable. By computing measures, such as percentages, means, standard
deviations, correlation coefficient, it may be possible to reduce the data to a manageable
proportion. By reducing the quantity of information by statistical methods, we increase
our ability to analyse and interpret the findings.
Descriptive statistics can be either univariate or bivariate. The univariate analysis
includes: frequency distributions, measures of central tendency, measures of dispersion.
The study of correlation and regression is a part of the bivariate and multivariate
descriptive statistics. Descriptive statistics is especially useful in instances where
interrelationship among two or more variables is to be analysed.
Many of the statistical data generated by businesses is descriptive. It might include
a number of employees on vacation during March, average salary of personnel in an
organization, corporate sales for a particular year and average return on investment for
a period of a few years.
(ii) Inductive/Inferential Statistics
Inferential or inductive statistics refers to those methods which are helpful in drawing
inferences about the characteristics of the population on the basis of sample data.
Alternatively, the inductive statistics may be termed as the logic of drawing statistically
valid conclusions about the totality of cases or items termed as population, in any statistical
investigation on the basis of examining a part of the population termed as sample and
which is drawn from the population in a scientific manner. If a researcher gathers data
from a sample and uses the statistics generated to reach conclusions about the population
from which the sample was taken, the statistics are inferential statistics. One application
of inferential statistics is in pharamaceutical research. Some new drugs are expensive to
produce, and therefore, tests must be limited to small samples of patients. Utilizing
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inferential statistics, researchers can design experiments with small randomly selected
samples of patients and attempt to reach to conclusions and make inferences about the
population. Market researchers use inferential statistics to study the impact of advertising
on various market segments. The advantage of using inferential statistics is that they
enable the researcher to study effectively a wide range of phenomenon without having
to conduct a census.
To understand the difference between descriptive and inferential statistics
definitions of (a) Population and sample, and (b) Parameters and statistic are helpful.
1.5.2 Population and Sample
Population: The collection or the aggregate of objects or the results of an operation are
called population or universe. A population/universe is the complete group of (collection
of all ) items, objects, persons about which knowledge is sought.
In theory of sampling, the parent population or simply the population means the
larger group from which the samples are drawn. Webster defines population as a
collection of all persons, objects, or items of interest.
The population can be a widely defined category, such as all automobiles, or it
can be narrowly defined, such as all Tata Motor cars produced from 2000 to 2010. A
population can be a group of people, such as all workers presently employed by
Microsoft, or it can be a set of objects, such as all dishwashers produced on February 3,
2011 by the General Electric Company at one particular plant. The researcher defines
the population to be whatever he or she is studying.
The population may be finite or infinite. Finite universe is one which has a definite
and certain number of items. A population containing only a finite (certain) number of
objects or individuals is called a finite population, viz., the population of books in the
library or of Indian students in the US, etc. A population with a number of objects so
large as to appear practically infinite is called an infinite population. When the number of
items is uncertain and infinite, the population is said to be an infinite population.
Data gathered from the whole population for a given measurement of interest,
refers to census. Most people are familiar with the Indian Census. Every ten years, the
government attempts to measure all persons living in the country. If a researcher is
interested in ascertaining the SAT scores for all students at the University of Arizona,
one way to do so is to conduct a census of all students currently enrolled at the University.
A sample is a portion of the whole. A part of the population selected from it (i.e.,
population) with the object of investigating its properties is called a sample. Researchers
often prefer to work with a sample of the population instead of the entire population. For
example, in conducting quality control experiments to determine the average life of light
bulbs, a light bulb manufacturer might randomly sample only 75 light bulbs during a
production run. Because of time and money limitations, a human resource manager
might take a sample of 40 employees instead of using a census to measure company
morale.
1.5.3 Parameters and Statistics
Differentiation between the terms parameter and statistic is important in the use of
inferential statistics.
A parameter is any descriptive measure of a population. All statistical measures
like mean, standard deviation, median computed from population data, i.e., all the statistical
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measures based on all items of the universe, are termed as parameters. The population
characteristic (or the constant) which we are estimating is called a parameter.
A statistic is any descriptive measure of a sample. Statistical measures worked
out on the basis of sample studies are termed as sample statistics. All statistical measures,
say mean and standard deviation worked out on the basis of sample studies, i.e., computed
from sample data, are termed as sample statistics.
Parameters are functions of the population values, while statistics are functions
of the sample observations. Parameters are usually denoted by Greek letters, for example
population mean (), population variance ( ), standard deviation (
s
). Statistics are
usually denoted by Roman letters. Examples of statistics are sample mean ( x ), sample
variance (s
2
) and sample standard deviation (s).
1.6 DATA COLLECTION AND DATA ORGANIZATION
Quantitative Analysis is the scientific approach to managerial decision-making. This
approach starts with data.
1.6.1 Introduction
Data is classified into two broad categories (i) Quantitative Data, for example per
capita income of different states of India or production of a particular commodity of an
organization and (ii) Qualitative Data, for example classification of workers as skilled,
unskilled and semi-skilled workers or assigning of ranks according to performance in an
interview. Like raw material for a factory, statistical data are raw material for statistics
and statistical methods/techniques. The field of statistics provides methods for collecting,
analysing and meaningfully interpreting data. The validity and accuracy of final judgment,
i.e., analysis and interpretation of results of data processing and manipulation for decision-
making and predictions depends basically on how well the data was gathered. The
quality of data will greatly affect the decisions.
1.6.2 Collection of Data
Almost every statistical effort begins with the process of collecting the necessary data
to be used in the study. Data collection, required under a number of circumstances,
involves collecting the values for variables. A Variable may be a continuous or a
discrete variable. For example, a marketing manager who needs to assess the effectiveness
of a new television advertisement, an operations manager who wishes to determine
whether a new technique is more effective in utilizing excess capacity in production and
a farmer who wants to assess the effect of fertilizer use on production of cereals, all of
them may need to collect data for further analysis. Data collection almost always involves
collecting data from a sample as collecting data from every item or individual in the
population would be too difficult or too time-consuming.
1.6.3 Types of Data: Primary Data and Secondary Data
Meaning: Depending upon the sources utilized, statistical data may be classified under
following two categories:
(i) Primary Data
(ii) Secondary Data
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Primary data refers to the data which is collected by the person performing the statistical
analysis. In other words, when the data is not available from an existing data source and
has to be collected by the user (himself/herself) for processing and analysis, then the
data is termed as Primary Data. Secondary data refers to the data which has been
collected earlier for some purpose other than the analysis currently being undertaken. In
other words, the data which has already been collected by others and already exists in
some form (published or unpublished) is termed as Secondary Data.
The Methods of Data Collection
Data may be collected through two sources: (a) Primary and (b) Secondary.
(a) Primary Data Sources
Conducting a field survey(s) is the only source of primary data collection. The survey
may be a Sample Survey or a Population/Census Survey.
Survey may be conducted by:
(a) Interviews (face to face or over telephone).
(b) Questionnaire: A set of questions is prepared by the researcher for extracting
information from the target population. The Questionnaire may be given to
respondents personally, through mail or by post/courier services. Respondents
are requested to return the filled questionnaire to the researcher.
(b) Secondary Data Sources
These may contain; external secondary data sources and internal secondary data sources.
External Secondary Data Sources
These are as follows:
o Newspapers and Business Magazines.
o Government Publications: National Income Statistics (CSO). Money and Finance
Statistics (Reserve Bank of India Bulletins) and Economic Survey (Govt. of India),
etc.
o Non-Government Publications: The Bombay Stock Exchange, Economic
Intelligence Service (CMIE), etc.
o International Organizations: U.N, F.A.O, IMF, OECD, ILO and WTO
Publications, etc.
Internal Secondary Data Sources
The data generated, within an organization, or an institution, (in the process of routine
business activities), to plan and control organizational operations is referred to as internal
sources of secondary data. Such data is usually published in the form of annual reports
of the organization concerned. Financial accounts, production and sales records are
examples of such data. The data presented in these reports is primarily meant for internal
use.
1.6.4 Classification/Organization of Data
The collection of raw data in itself reveals very little. Merely collecting data is of no use
unless it is organized in such a way that it is revenant to the purpose for which the data
is needed. Suppose you were the manager of an electronic goods store that needed
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funding from banks for expansion. How would you present that data? Presenting the
bankers with data of thousands of transaction would overwhelm them and not be very
useful. You need to transform the transaction data into information by summarizing the
details of each transaction in some useful way that would convince the bankers that
your store is indeed a thriving business and you are a good candidate for funding from
the bank for expansion.
We must organize the data into some form so that, at a mere glance, we can get
an idea of what the data can tell us. When the raw data has been collected and edited,
it should be put into an ordered form so that it can be looked at more objectively. The
important step towards processing the data is organization of data.
Some common statistical tools of organizing a large collection of data, thereby
making it easier to more fully comprehend the information it contains are frequency
tables and various pictorial displays that can provide a handy visual representation of the
data. Data array, contingency tables and, stem and leaf designs also help in the
presentation of a large data set in a concise and discernible form.
Frequency Distributions
One way we can compress data is to use a frequency table or a frequency distribution.
Frequency distribution can be defined as a list of all the values obtained in the
data and the corresponding frequency with which these values occur in the data.
The frequency distribution can either be ungrouped or grouped.
Ungrouped Frequency Distributions
When the number of values of the variable is small, then we can construct an ungrouped
frequency distribution which is simply listing the frequency of occurrence against the
value of the given variable. As an example, let us assume that 20 families were surveyed
to find out how many children each family had. The raw data obtained from the survey
is as follows:
0, 2, 3, 1, 1, 3, 4, 2, 0, 3, 4, 2, 2, 1, 0, 4, 1, 2, 2, 3
This data can be classified into an ungrouped frequency distribution. The number
of children becomes our variable (X) for which we can list the frequency of occurrence
(f) in a tabular form as follows:
Number of Children (X) Frequency (f)
0 3
1 4
2 6
3 4
4 3
Total = 20
The above table is also known as discrete frequency distribution where the variable
has discrete numerical values.
Grouped Frequency Distribution
However, when the data set is very large, it becomes necessary to condense the data
into a suitable number of groups or classes of the variable values and then assign the
combined frequencies of these values into their respective classes. As an example, let
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us assume that 100 employees in a factory were surveyed to find out their ages. The
youngest person was 20 years of age and the oldest was 50 years old. We can construct
a grouped frequency distribution for this data so that instead of listing frequency by
every year of age, we can list frequency according to an age group. Also, since age is a
continuous variable, a frequency distribution would be as follows:
Age Group (Years) Frequency (f)
20 to less than 25 5
25 30 15
30 35 25
35 40 30
40 45 15
45 50 10
Total = 100
In this example, all persons between 20 years (including 20 years old) and 25
years (but not including 25 years old) would be grouped into the first class, and so on.
The interval of 20 to less than 25 is known as Class Interval (CI). A single representation
of a class interval would be the midpoint (or average) of that class interval. The midpoint
is also known as the class mark.
Constructing a Frequency Distribution
A frequency distribution (or frequency table) simply divides the data into classes and
records the number of observations in each class by tally marks, as shown in Table 1.2.
The number of classes in a frequency table is somewhat arbitrary. In general,
your table should have between 6 and 15 classes. Too few classes would not reveal
any details about the data; too many would prove as confusing as the list of raw data
itself.
A simple rule can be followed to approximate the number of classes, c:
Number of classes is the lowest power to which 2 is raised. 2
c
>/=n determines
the number of classes.
Assuming we have n=50 observations. 2
c
>/= 50. 2
6
=64. This rule suggests that
there should be 6 classes in the frequency table.
The class midpoint, M, is calculated as the average of the upper and lower
boundaries of that class. The midpoint for the first class in Table 1.2 is (50 + 59)/2
= 54.5.
The class interval is the range of values found within a class. It is determined by
subtracting the lower (or upper) boundary of one class from the lower (or upper) boundary
of the next class. The interval for the first class in Table 1.2 is (60 50) = 10. It is
desirable to make class intervals of equal size, since this facilitates statistical interpretations
in subsequent uses.
The class interval can be determined as:
Class interval for a frequency table CI Largest value Smallest value
_____________________________
=
_____________________
=
Range
The number of desired classes The number of classes
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Since you decided on six classes for your frequency table, the class interval
becomes:
CI =
102 50
6

= 8.7
Since 8.7 is an awkward number, the interval can be slightly adjusted up or down.
For convenience, the interval of 10 was selected in forming Table 1.2.
Case Study
The Statistical Analysis Division of Kingfisher Airlines is to decide the size of planes.
As the resident statistician for Kingfisher Airlines, you are asked by the director of the
Statistical Analysis Division to collect and organize data on the number of passengers
who have chosen to fly on Kingfisher. This data is displayed in Table 1.1 for the past
50 days. However, in this raw form, it is unlikely that the director could gain any
valuable information regarding flight operations. It is difficult to arrive at any meaningful
conclusion by merely examining a bunch of numbers that have been jotted down. The
data must be organized and presented in some concise and revealing manner so that
the information they offer can be readily discerned.
Table 1.1 Raw Data on the Number of Passengers for Kingfisher Airlines
68 71 77 83 79
72 74 57 67 69
50 60 70 66 76
70 84 59 75 94
65 72 85 79 71
83 84 74 82 97
77 73 78 93 95
78 81 79 90 83
80 84 91 101 86
93 92 102 80 69
A frequency distribution (or frequency table) simply divides the data into classes
and records the number of observations in each class, as shown in Table 1.2.
Table 1.2 Frequency Distribution for Passengers
Class Tally Frequency Midpoint Relative
(Passengers) (Days) (M) Frequency
50 to 59 111 3 54.5 6%
60 to 69 1111 11 7 64.5 14%
70 to 79 1111 1111 1111 111 18 74.5 36%
80 to 89 1111 1111 11 12 84.5 24%
90 to 99 1111 111 8 94.5 16%
100 to 109 11 2 104.5 4%
50
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14 Material
NOTES
Quantitative Techniques:
Introduction, Data
Collection and
Classification
It can now be seen, for example, that on 18 of the 50 days, i.e., in 36% of 50 days,
between 70-79 passengers flew on Kingfisher. In 76% of 50 days, 70-99 passengers
flew on Kingfisher. At no time did the daily passenger list exceed 109. The airline rarely
carried fewer than 60 passengers.
Business Decision Based on Organization of Data: As the resident statistician
for Kingfisher Airlines, you may suggest the director of the Statistical Analysis Division
to have a 100 seater plane for the Kingfisher Airlines flights.
If the data in a frequency table is continuous, it is necessary to allow for fractional
values. Our class boundaries would have to appear as:
50 and under 60
60 and under 70
70 and under 80
:
Cumulative Frequency Distributions
Cumulative frequencies can be Less than or More than type. More than cumulative
frequency distribution can be obtained by adding successive frequencies from bottom to
top. Less than cumulative frequency distribution can be obtained by adding successive
frequencies from top to bottom.
Table 1.3 More Than Cumulative Frequency Distribution
for the Number of Passengers
Class Cumulative Relative
(Passengers) Frequency (Days) Frequency
50 or more 50 100%
60 or more 47 94%
70 or more 40 80%
80 or more 22 44%
90 or more 10 20%
100 or more 2 4%
110 or more 0
Table 1.4 Less Than Cumulative Frequency Distribution
for Number of Passengers
Class Cumulative Relative
(Passengers) Frequency (Days) Frequency
Less than 50 0 o%
Less than 60 3 6%
Less than 70 10 20%
Less than 80 28 56%
Less than 90 40 80%
Less than 100 48 96%
Less than 110 50 100%
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Material 15
NOTES
Quantitative Techniques:
Introduction, Data
Collection and
Classification
Table 1.5 Relative Frequency Distribution for Passengers
Class Cumulative Relative
(Passengers) Frequency (Days) Frequency
50 59 3 3 50 = 6%
60 69 7 7 50 = 14%
70 79 18 18 50 = 36%
80 89 12 12 50 = 24%
90 99 8 8 50 = 16%
100 109 2 2 50 = 4%

50 100%
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