CMA Foundation · Fundamentals of Business Mathematics and Statistics
Statistical Representation of Data: formula sheet
Key formulas
- Bases of classification
- Geographical (place) | Chronological (time) | Qualitative (attribute) | Quantitative (variable)
- Decide the basis from the feature used to group the data. Time gives chronological. A measurable number gives quantitative.
- Parts of a statistical table
- Table number, Title, Caption, Stub, Body, Head note, Foot note, Source note
- Caption is the column heading. Stub is the row heading. Body holds the figures.
- Types of tables by number of characteristics
- Simple (one characteristic) | Double (two) | Triple (three) | Manifold (more than three)
- Count how many characteristics are shown together in the table.
- Types of tables by purpose
- General purpose (reference) table | Special purpose (summary) table
- General purpose tables hold detailed data for reference. Special purpose tables show the findings of a particular study.
- Class limits and width (for quantitative classes)
- Class width = Upper limit − Lower limit (exclusive classes)
- Use for grouped data. For example, in 10-20 the width is 20 − 10 = 10.
- Class width (exclusive classes)
- Class width = Upper limit − Lower limit
- Use boundaries when classes are inclusive.
- Mid-point (mid value)
- Mid-point = (Lower limit + Upper limit) ÷ 2
- For inclusive classes, using limits or boundaries gives the same answer.
- Adjustment factor for inclusive classes
- d = (Lower limit of next class − Upper limit of this class) ÷ 2
- For integer data with gap 1, d = 0.5.
- Class boundaries
- Lower boundary = Lower limit − d; Upper boundary = Upper limit + d
- This converts inclusive classes to exclusive classes.
- Approximate number of classes
- Number of classes ≈ Range ÷ Class width
- Range = Largest value − Smallest value. Round up.
- Less than cumulative frequency
- Add frequencies from the first class onwards
- Placed against the upper boundary of each class.
- More than cumulative frequency
- Add frequencies from the last class backwards
- Placed against the lower boundary of each class.
- Total frequency
- N = Σf
- The last less than cumulative frequency and the first more than cumulative frequency both equal N.
- Pie chart angle
- Angle of a component = (Component value ÷ Total) × 360°
- All angles must add up to 360°.
- Angle from percentage
- Angle = (Percentage ÷ 100) × 360° = percentage × 3.6°
- 10% = 36°, 25% = 90°, 50% = 180°.
- Percentage bar height
- Component percentage = (Component ÷ Bar total) × 100
- Every bar in a percentage bar diagram has the same total height of 100%.
- Scaling a two-dimensional diagram
- Side of square ∝ √value; Radius of circle ∝ √value
- Area is proportional to the value, so lengths scale by the square root.
- Choosing the diagram
- Compare values: simple or multiple bar. Parts of a total: component bar or pie. Share structure across bars: percentage bar.
- Use this to answer 'which diagram is suitable' questions.
- Class width
- Class width = Upper limit − Lower limit (exclusive classes)
- For inclusive classes, first convert to true limits.
- Mid-value of a class
- Mid-value = (Lower limit + Upper limit) ÷ 2
- Used as the x-coordinate of each point on the frequency polygon.
- Adjustment for inclusive classes
- True lower limit = Lower limit − d ÷ 2; True upper limit = Upper limit + d ÷ 2
- d is the gap between the upper limit of one class and the lower limit of the next. For 10-19, 20-29, d = 1.
- Frequency density
- Frequency density = Class frequency ÷ Class width
- Use as the height of each rectangle when class widths are unequal. Some books first scale to a standard width; the shape is the same.
- Less-than ogive points
- Plot (upper limit, cumulative frequency of classes up to that limit)
- Add a starting point (lower limit of first class, 0).
- More-than ogive points
- Plot (lower limit, frequency of that class and all later classes)
- The last point is (upper limit of last class, 0).
- Median from ogive
- x-value where the two ogives intersect; also x at height N/2
- N is the total frequency.
- First quartile Q1
- x-value at height N/4 on the less-than ogive
- One quarter of items lie below it.
- Third quartile Q3
- x-value at height 3N/4 on the less-than ogive
- Three quarters of items lie below it.
Quick revision
- Class width = upper boundary − lower boundary of the class.
- Class mark = (lower limit + upper limit) ÷ 2.
- For inclusive classes, boundary adjustment = (next lower limit − previous upper limit) ÷ 2.
- Exclusive classes already have boundaries equal to their limits.
- Relative frequency = class frequency ÷ total frequency.
- A histogram uses class boundaries on the x-axis, with bars touching each other.
- With unequal class widths, a histogram needs frequency density = frequency ÷ width.
- A frequency polygon joins the mid-points of the tops of histogram bars.
- A less-than ogive plots upper boundaries against less-than cumulative frequencies.
- A more-than ogive plots lower boundaries against more-than cumulative frequencies.
- The two ogives cross at a point whose x-value is the median.
- In a pie chart, angle of a sector = (value ÷ total) × 360°.
Common mistakes
- Swapping stub and caption Fix: Stub is the row heading on the left. Caption is the column heading on top. Think of a stub as the side.
- Treating classification and tabulation as the same thing Fix: Classification groups the data. Tabulation presents the grouped data in rows and columns. Classification comes first.
- Taking class width of 10-19 as 9. Fix: Convert to boundaries 9.5-19.5. Width is 10.
- Placing a value equal to the upper limit in the same class in an exclusive series. Fix: In exclusive classes, the upper limit is excluded. So 20 goes into 20-30, not 10-20.
- Mixing up a multiple bar diagram and a component bar diagram. Fix: In a multiple bar diagram, the bars stand side by side and each is a separate series. In a component bar, one bar is stacked into parts that add to the total.
- Using 100 instead of 360 in a pie chart angle. Fix: Always write angle = (value ÷ total) × 360°. If you have a percentage, multiply by 3.6.
- Leaving gaps between rectangles when the classes are inclusive (10-19, 20-29). Fix: Subtract d ÷ 2 from each lower limit and add d ÷ 2 to each upper limit first, so classes touch. The adjustment is 0.5 when the gap d is 1.
- Using frequency as height with unequal class widths. Fix: Compute frequency density = frequency ÷ class width and use it as the height.
- Plotting cumulative frequencies against class midpoints. Fix: For a less-than ogive use upper limits. For a more-than ogive use lower limits.
- Using the wrong limit for the more-than ogive. Fix: A more-than curve means 'this value or more', so use lower limits.
Exam tips
- Learn the eight parts of a table in order. Questions often ask which part holds the column headings or the units.
- Practise naming the basis of classification from a one-line example. These MCQs are quick marks.
- Remember that there is no negative marking. If unsure, eliminate and attempt every question.
- Do not spend time on long tables. Count characteristics, then answer.
- Revise this topic with frequency distributions, since class intervals build on classification.
- Always check the gap between classes first. It tells you the series type in two seconds.
- Class width, boundaries and mid-point questions are quick marks. Do them first.
- In cumulative frequency questions, confirm that the final total equals Σf. It catches addition slips.