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Temperature scales like Celsius (C) and Fahrenheit (F) are measured by using the interval scale. In both temperature measurements, 40° is equal to 100° minus 60°. Differences make sense. But 0 degrees does not because, in both scales, 0 is not the absolute lowest temperature. Temperatures like -10° F and -15° C exist and are colder than 0.

Interval level data can be used in calculations, but one type of comparison cannot be done. 80° C is not four times as hot as 20° C (nor is 80° F four times as hot as 20° F). There is no meaning to the ratio of 80 to 20 (or four to one).

Data that is measured using the ratio scale takes care of the ratio problem and gives you the most information. Ratio scale data is like interval scale data, but it has a 0 point and ratios can be calculated. For example, four multiple choice statistics final exam scores are 80, 68, 20 and 92 (out of a possible 100 points). The exams are machine-graded.

The data can be put in order from lowest to highest: 20, 68, 80, 92.

The differences between the data have meaning. The score 92 is more than the score 68 by 24 points.Ratios can be calculated. The smallest score is 0. So 80 is four times 20. The score of 80 is four times better than the score of 20.

Frequency

Twenty students were asked how many hours they worked per day. Their responses, in hours, are as follows:

  • 5
  • 6
  • 3
  • 3
  • 2
  • 4
  • 7
  • 5
  • 2
  • 3
  • 5
  • 6
  • 5
  • 4
  • 4
  • 3
  • 5
  • 2
  • 5
  • 3
.

[link] lists the different data values in ascending order and their frequencies.

Frequency table of student work hours
DATA VALUE FREQUENCY
2 3
3 5
4 3
5 6
6 2
7 1

A frequency is the number of times a value of the data occurs. According to [link] , there are three students who work two hours, five students who work three hours, and so on. The sum of the values in the frequency column, 20, represents the total number of students included in the sample.

A relative frequency is the ratio (fraction or proportion) of the number of times a value of the data occurs in the set of all outcomes to the total number of outcomes. To find the relative frequencies, divide each frequency by the total number of students in the sample–in this case, 20. Relative frequencies can be written as fractions, percents, or decimals.

Frequency table of student work hours with relative frequencies
DATA VALUE FREQUENCY RELATIVE FREQUENCY
2 3 3 20 or 0.15
3 5 5 20 or 0.25
4 3 3 20 or 0.15
5 6 6 20 or 0.30
6 2 2 20 or 0.10
7 1 1 20 or 0.05

The sum of the values in the relative frequency column of [link] is 20 20 , or 1.

Cumulative relative frequency is the accumulation of the previous relative frequencies. To find the cumulative relative frequencies, add all the previous relative frequencies tothe relative frequency for the current row, as shown in [link] .

Frequency table of student work hours with relative and cumulative relative frequencies
DATA VALUE FREQUENCY RELATIVE
FREQUENCY
CUMULATIVE RELATIVE
FREQUENCY
2 3 3 20 or 0.15 0.15
3 5 5 20 or 0.25 0.15 + 0.25 = 0.40
4 3 3 20 or 0.15 0.40 + 0.15 = 0.55
5 6 6 20 or 0.30 0.55 + 0.30 = 0.85
6 2 2 20 or 0.10 0.85 + 0.10 = 0.95
7 1 1 20 or 0.05 0.95 + 0.05 = 1.00

The last entry of the cumulative relative frequency column is one, indicating that one hundred percent of the data has been accumulated.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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