The relative frequency distribution takes that number and turns it into a percentage of the whole number. The chart shows us that five out of twenty-five students, or 25 percent, received an A in the class. It is basically two different ways of analyzing the same data.
The reason why the father wished to close down the branch was that it appeared to be making a loss. However, it is quite the reverse; if the branch was closed then, the positive contribution from the branch would be lost and overall profits would fall. This is because the indirect costs of production do not vary with output and, therefore, closure of a section of the firm would not lead to immediate savings.
This may mean that closing the branch would be a mistake on financial grounds. This mistake is made due to a misunderstanding of nature of cost behavior. If the branch is closed then the only costs that would be saved are the costs directly related to the running of the branch: The costs are indirect in nature, in this example the marketing and central administration costs, would still have to be paid as they are unaffected by output.
For this decision to be made, we should use contribution as a guide for deciding whether or not to close a branch.
This can also be applied to the production of certain product lines, or the cost effectiveness of departments. On financial grounds, contribution is therefore, a better guide in making decisions.Start studying Stats Chapter 1,2, 3 Review.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. The graphs that have their distributions as proportions instead of raw data as frequencies are called.
A weighted mean is used when the values of the data set are not all equally represented. "After the set of coefficients b0 is computed, M randomly drawn samples of T observations are drawn from the original data set with replacement.
T may be less than or equal to n, the sample size. T may be less than or equal to n, the sample size.
6sp3 Recognize that a measure of center for a numerical data set summarizes all of its values with a single number, while a measure of variation describes how its values vary with a single number. Summarize and describe distributions.
The range is the simplest measure of variation to find. It is simply the highest value minus the lowest value.
The range only involves the smallest and largest numbers, and it would be desirable to have a statistic which involved all of the data values. The first attempt one might make at this is. Such data resulting from subtracting the mean is called mean-deviation data, and the mean of mean-deviation data is always zero.
Now that we have made the average magnitude comparable by transforming each variable to a mean of zero, the observations now represent pure variation. A set of data can be described to the spreadsheet as a range by specifying the beginning cell, in the upper left corner of the data, and the ending cell, in .