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David Wise handles his own investment portfolio, and has done so for many years. Listed
Chapter 0, Problem 32(choose chapter or problem)
David Wise handles his own investment portfolio, and has done so for many years. Listed below is the holding time (recorded to the nearest whole year) between purchase and sale for his collection of stocks. a. How many classes would you propose? b. What class interval would you suggest? c. What quantity would you use for the lower limit of the initial class? d. Using your responses to parts (a), (b), and (c), create a frequency distribution. e. Identify the appearance of the frequency distribution
Questions & Answers
QUESTION:
David Wise handles his own investment portfolio, and has done so for many years. Listed below is the holding time (recorded to the nearest whole year) between purchase and sale for his collection of stocks. a. How many classes would you propose? b. What class interval would you suggest? c. What quantity would you use for the lower limit of the initial class? d. Using your responses to parts (a), (b), and (c), create a frequency distribution. e. Identify the appearance of the frequency distribution
ANSWER:Step 1 of 5
a. If is the number of classes and is the number of observations, then for class intervals, select the smallest such that .
In this case, . If , then which is less than . So, will not work. If , then which is greater than . So, number of classes will be 6 .