By Robert M. Leekley
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Additional info for Applied Statistics for Business and Economics
Do not. ). Instead, enter the formula with cell locations. 5 Deciding on the amount of detail. 6 Relative and cumulative frequency distributions. absolute reference. Then you can use the Copy command to calculate all the others automatically in one step. There will be a lot of repetitive operations in the material to come. The Copy command will be a godsend. Learn to use it effectively. 6 also shows cumulative frequency distributions for both the ordinary and relative frequency distributions. These do as their name implies—they accumulate, or add up, frequencies.
Something needs to be said about what it means to explain things statistically; about the difference between explanation and causation. Consider the baseball salary example. Players, on different teams and in different years, have varied in the salaries they have earned. Suppose you had to guess the salary for each. If you had nothing else to go on, your best guess for each would be the overall average. It would be wrong—sometimes too low and sometimes too high—but with nothing else to go on, it would give you the smallest possible errors.
Relative frequencies cumulate to 1, or 100%. Again, these frequency distributions are not yet ready for presentation. For presentation, you would want to clarify the meaning of the bins. They represent ranges, not single numbers, and these ranges include their upper bounds. You would probably also want to change the relative frequencies into percentages, since most people probably find these more intuitive. indb 19 2/20/10 3:50:52 PM 20 Applied Statistics for Business and Economics information.