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CMA Intermediate · Financial Management and Business Data Analytics · Data Presentation: Visualisation and Graphical Presentation

A histogram is drawn for the daily trading turnover (in Rs lakh) of a stock using class intervals of equal width. What does the height of each rectangle represent in this case?

With equal class widths, each rectangle's height in a histogram represents the class frequency, because area is proportional to frequency and widths are identical. Cumulative frequencies belong to an ogive, and mid-points are only used as the x-coordinates when constructing a frequency polygon.

  1. AThe class frequencyCorrect
  2. BThe class mid-point
  3. CThe cumulative frequency up to the class
  4. DThe class width

Explanation

In a histogram with equal class widths, the area of each rectangle is proportional to frequency, so the height directly shows the class frequency. Cumulative frequency is plotted in an ogive, not in a histogram. The mid-point is used for the frequency polygon's x-coordinate.

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