Days to Maturity for Short-Term Investments. Note that there are 40 observations

midtlinjeg

midtlinjeg

Answered question

2021-09-20

Days to Maturity for Short-Term Investments. Note that there are 40 observations, the smallest and largest of which are 36 and 99, respectively. Apply the preceding procedure to choose classes for limit grouping. Use approximately seven classes. Note: If in Step 2 you decide on 10 for the class width and in Step 3 you choose 30 for the lower limit of the first class, then you will get the same classes as used in Example; otherwise, you will get different classes (which is fine).
TABLE Days to maturity for 40 short-term investments
70649955648987646238677060697839755671519968958657534750558180985136636685798370
Example Limit Grouping
Days to Maturity for Short-Term Investments Table 2.6 displays the number of days to maturity for 40 short-term investments. The data are from BARRON’S magazine. Use limit grouping, with grouping by 10s, to organize these data into frequency and relative-frequency distributions.

Answer & Explanation

broliY

broliY

Skilled2021-09-21Added 97 answers

Answer may vary one of the possible solution is as follows:
Limit value grouping:
A grouping method in which each class is used to represents a possible range of values (class limits). Each range consists of smallest value as the lower limit of the class and largest value as the upper limit of the class.
The class limits are termed as limit value classes, and this grouping method is referred to be limit value grouping.
The most appropriate place for use this limit value grouping method is that the data to be whole number in nature with relatively more distinct observation to employ single value grouping.
Steps to find the classes for the data set:
Step 1:
Obtain the (approximated) number of class which is seven to fourteen is given in the information.
Step 2:
Calculate the class width by using the following formula:
class width=Maximum observation-Minimum observationNumber of classes
The minimum value is 36 and maximum value is 99.
class width=99367
=637
=9
Thus, the class width is approximately equal to 9.
Step 3:
Obtain the lower class limit which is less than or equal to the minimum value of the data set.
Thus the choice of lower limit of the class is 35 which is less than that of 36 (minimum observation).
Step 4:
From the information given in table 2.6 of days to maturity for 40 short terms investment is started with class width of 10 then the first class limit will be less than 40 which is 35-44.
Thus the remaining classes for the data set are given below:
Days to maturity3544455455646574758485949510499

Do you have a similar question?

Recalculate according to your conditions!

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?