Which of the following is a way to determine the size of the class interval:
a. s = r/(1+3.3 log n)
b. s = r+1/(3.3 log n)
c. s = r+1/3.3 log n
d. There is no specific formula.
In business studies, analysis of data is something that is essential to identify trends and determine what would be the right decisions to take. The goal is always increase the ratio of returns versus the risk.
Analysis of data starts with collection of data. The data is then classified to make it easier to study it. Later mathematical techniques like regression, correlation, etc., can be used to find trends. And the data can also be presented in a meaningful manner using graphs and charts.
When data is divided into classes, the number of classes should be at least 5 and should not exceed 20. Each class should be unique so that a data point lies in only one them.
If the highest value in the data points is H and the lowest is L, R= H - L. The number of classes is given by the formula K = 1 + 3.3 log n where n is the total number of data points.
The size of the class interval is R / (1 + 3.3 log n).