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The Journal of Finance made its content available on the
Chapter 2, Problem 34E(choose chapter or problem)
Problem 34E
The Journal of Finance made its content available on the Internet starting in July of 2005. The table below shows the number of times a monthly version was downloaded and the number of articles that were viewed during each month. Suppose you wish to make a frequency distribution of the number of downloads.
312 |
2,753 |
2595 |
6,057 |
7,624 |
6,624 |
6,362 |
6,575 |
7,760 |
7,085 |
7,272 |
5,967 |
5,256 |
6,160 |
6,238 |
6,709 |
7,193 |
5,631 |
6,490 |
6,682 |
7,829 |
7,091 |
6,871 |
6,230 |
7,253 |
5,507 |
5,676 |
6,974 |
6,915 |
4,999 |
5,689 |
6,143 |
7,086 |
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:
Problem 34E
The Journal of Finance made its content available on the Internet starting in July of 2005. The table below shows the number of times a monthly version was downloaded and the number of articles that were viewed during each month. Suppose you wish to make a frequency distribution of the number of downloads.
312 |
2,753 |
2595 |
6,057 |
7,624 |
6,624 |
6,362 |
6,575 |
7,760 |
7,085 |
7,272 |
5,967 |
5,256 |
6,160 |
6,238 |
6,709 |
7,193 |
5,631 |
6,490 |
6,682 |
7,829 |
7,091 |
6,871 |
6,230 |
7,253 |
5,507 |
5,676 |
6,974 |
6,915 |
4,999 |
5,689 |
6,143 |
7,086 |
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:
Solution:
Step 1 of 5:
The data is given by
312 |
2,753 |
2595 |
6,057 |
7,624 |
6,624 |
6,362 |
6,575 |
7,760 |
7,085 |
7,272 |
5,967 |
5,256 |
6,160 |
6,238 |
6,709 |
7,193 |
5,631 |
6,490 |
6,682 |
7,829 |
7,091 |
6,871 |
6,230 |
7,253 |
5,507 |
5,676 |
6,974 |
6,915 |
4,999 |
5,689 |
6,143 |
7,086 |
a). We have to find how many classes would you propose.
Total number of observations = 33
Here, maximum value = 7829
Minimum value = 312.
Now, by using rule.
The 25 = 32, which is less than 33, so 5 classes are not enough.
The 26 = 64, which is greater than 33.
So, 6 classes are recommended.