FREQUENCY DISTRIBUTION AND ITS TYPES
A frequency distribution shows the frequency of repeated items in a graphical form or tabular form. It gives a visual display of the frequency of items or shows the number of times they occurred. Frequency distribution is used to organize the collected data in table form. The data could be marks scored by students, temperatures of different towns, points scored in a volleyball match, etc. After data collection, we have to show data in a meaningful manner for better understanding. Organize the data in such a way that all its features are summarized in a table. This is known as frequency distribution.
Key Points :
- Frequency distribution in statistics is a representation that displays the number of observations within a given interval.
- The representation of a frequency distribution can be graphical or tabular so that it is easier to understand.
- Frequency distributions are particularly useful for normal distributions, which show the observations of probabilities divided among standard deviations.
- In finance, traders use frequency distributions to take note of price action and identify trends.
Types of Frequency Distribution
- Ungrouped frequency distribution: It shows the frequency of an item in each separate data value rather than groups of data values. Instead of sets of data values, it presents the frequency of an item in each particular data value.
- Grouped frequency distribution: In this type, the data is arranged and separated into groups called class intervals. The frequency of data belonging to each class interval is noted in a frequency distribution table. The grouped frequency table shows the distribution of frequencies in class intervals. The data is organised and grouped into groups called class intervals in this type. In a frequency distribution table, the frequency of data
belonging to each class interval is represented. The grouped frequency table shows the frequency distribution in class intervals. - Relative frequency distribution: It tells the proportion of the total number of observations associated with each category. A frequency distribution is the sum of the first frequency and all frequencies below it. We must add each value to the next, then add the sum to the next, and so on until the last value is reached. The whole sum of all frequencies will be the last cumulative frequency.
- Cumulative frequency distribution: It is the sum of the first frequency and all frequencies below it in a frequency distribution. You have to add a value with the next value then add the sum with the next value again and so on till the last. The last cumulative frequency will be the total sum of all frequencies. It indicates what percentage of the total number of observations each category belongs to.
