A sample of 20 financial analysts was asked to provide...

A sample of 20 financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table: $$ \begin{array}{rc} \hline \text { Forecast }(\$ \text { per share) } & \text { Number of Analysts } \\ \hline 9.95<10.45 & 2 \\ 10.45<10.95 & 8 \\ 10.95<11.45 & 6 \\ 11.45<11.95 & 3 \\ 11.95<12.45 & 1 \\ \hline \end{array} $$ a. Construct the histogram. b. Determine the relative frequencies. c. Determine the cumulative frequencies. d. Determine and interpret the relative cumulative frequencies.

A sample of 20 financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table:

$$
\begin{array}{rc}
\hline \text { Forecast }(\$ \text { per share) } & \text { Number of Analysts } \\
\hline 9.95<10.45 & 2 \\
10.45<10.95 & 8 \\
10.95<11.45 & 6 \\
11.45<11.95 & 3 \\
11.95<12.45 & 1 \\
\hline
\end{array}
$$

a. Construct the histogram.
b. Determine the relative frequencies.
c. Determine the cumulative frequencies.
d. Determine and interpret the relative cumulative frequencies.

Key Concepts

Histogram

A histogram is a graphical representation of the distribution of numerical data using bars of varying heights. It is typically used for continuous data that has been grouped into bins or classes, where the height of each bar reflects the frequency of data points within that interval.

Frequency Distribution

A frequency distribution is a summary of how often different values or ranges of values occur within a dataset. It organizes data into classes or intervals and records the frequency of data points in each class, allowing for a quick understanding of the overall distribution.

Relative Frequency

Relative frequency is the proportion or percentage of the total number of data points that fall within a particular class or interval. It is calculated by dividing the frequency of a specific class by the total frequency, providing a normalized measure of occurrence that is useful for comparing distributions with different sample sizes.

Cumulative Frequency

Cumulative frequency is the running total of frequencies through the classes in a frequency distribution. It indicates the number of observations that fall below the upper boundary of each class, which helps in understanding the accumulation of data points over the range of values.

Relative Cumulative Frequency

Relative cumulative frequency is the cumulative frequency expressed as a proportion or percentage of the total number of observations. It shows the accumulation of the relative frequencies up to a given class and is useful for identifying percentiles and assessing the spread of the data relative to the entire dataset.

Transcript

00:01 Hello students here we have our question that a symbol of 20 financial analyzes an elitist ways was asked to provide forecast of earning per share of the cooperation for next year's.

00:17 The result is summarized in this table.

00:21 We have to construct construct a hissed a gram.

00:24 We have to determine relative frequency, cumulative frequency and the relative frequency.

00:30 And we have to interpret relative cumulative frequency.

00:34 Mm hmm.

00:36 So first of all we will take our graph then we will find commonality, frequency, community frequency.

00:40 We know that uh we write to then we eat this uh community frequency with the frequency of the next class.

00:51 And then it gives us the answer and then we hear this answer with the frequency of the 3rd class and continue until we complete our work in our final the result is 20.

01:09 If we hear all these numbers we will get 20 then we will find relative frequency.

01:16 Collective frequency.

01:17 Is that we will divide the frequency of the class with the total number of pregnancy like two divided by 20.

01:29 It gives us 0.1.

01:31 Then it divided by 20.

01:33 It gives us 0.4 six divided by 20.

01:36 It gives 0.333 divided by 20.

01:40 It gives 1 0.15 and one divided by 20.

01:44 It gives us 0.05.

01:47 Then we will find a relative community frequency or cumulative relative frequency.

01:52 Uh as usual as we find cumulative frequency and we will find related complex frequency or cumulative related frequency which is we will write the related frequency.

02:05 Then we urge collective frequency of first class with the relative frequency of second class.

02:10 We get a number.

02:12 Then we add this number with the relative frequency of the third class.

02:15 We'll get another number.

02:16 Then we will add this number with the frequency of fourth class.

02:20 And do the same process until we complete our data.

02:25 So uh the relative relative cumulative frequency will be equals to one or near to one like 0.98 or 0.999 etc.

02:39 So this is the portion of our the question that we complete...