Question

What Would You Do? You work at a bank and are asked to recommend the amount of cash to put in an ATM each day. You do not want to put in too much (which would cause security concerns) or too little (which may create customer irritation). The daily withdrawals (in hundreds of dollars) for 30 days are listed. 72 84 61 76 104 76 86 92 80 88 98 76 97 82 84 67 70 81 82 89 74 73 86 81 85 78 82 80 91 83
Construct a relative frequency histogram for the data. Use 8 classes.

Accepted Answer

Step 1: Organize the data. Start by identifying the range of the data. The range is calculated as the difference between the maximum value (104) and the minimum value (61). This will help determine the class width. Step 2: Determine the class width. Divide the range by the number of classes (8) and round up to the nearest whole number. The formula for class width is: RangeNumber of Classes. Add 1 if necessary to ensure all data points are included. Step 3: Create the class intervals. Start with the minimum value (61) and add the class width to create the next interval. Repeat this process until you have 8 intervals. Ensure that the intervals do not overlap and cover the entire range of the data. Step 4: Count the frequency of data points in each class interval. For each interval, count how many data points fall within that range. This will give you the frequency for each class. Step 5: Calculate the relative frequency for each class. Divide the frequency of each class by the total number of data points (30). The formula is: Frequency of ClassTotal Frequency. Use these relative frequencies to construct the histogram, with the class intervals on the x-axis and the relative frequencies on the y-axis.

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Key Concepts

Relative Frequency

Histogram

Class Intervals