Section 2.1: Summarizing Categorical Data
This section introduces techniques for summarizing categorical data, data consisting of names, labels, or descriptors. The example focuses on students classified by year: first-year, second-year, third-year, fourth-year, and "ready to transfer." For a broader overview of data types, see Understanding Data Types: Qualitative and Quantitative Explained.
Sorting Categorical Data
- Sorting means organizing data by a chosen principle, which is essential for creating meaningful Statistical Methods for Economics: Data Classification and Frequency Distribution.
- Example: Grouping all "first-year" labels together, then "second-year," etc.
- Technology (Excel, TI-84) or manual sorting can be used for small datasets.
Frequency Distribution Table
A table with two columns:
- Class (Category): Each distinct label or descriptor.
- Frequency (Count): The number of times a label occurs in the dataset.
Example (sample size n = 16):
| Class | Frequency | |-------------------|-----------| | First-year | 4 | | Second-year | 5 | | Third-year | 2 | | Fourth-year | 1 | | Transfer | 4 |
Verification rule: The sum of all frequencies must equal the sample size (n). Σ f_k = 4 + 5 + 2 + 1 + 4 = 16 ✓
Relative Frequency Table
Adds a column for relative frequency, which expresses each frequency as a proportion of the total.
- Formula: Relative frequency = (Frequency of class) / n
- Typically rounded to at most 4 decimal places.
This approach helps in Mastering Confidence Intervals for Population Proportions in Statistics later in the course.
Example with n = 16:
| Class | Frequency | Relative Frequency | |-------------------|-----------|--------------------| | First-year | 4 | 0.2500 | | Second-year | 5 | 0.3125 | | Third-year | 2 | 0.1250 | | Fourth-year | 1 | 0.0625 | | Transfer | 4 | 0.2500 |
Verification rule: The sum of all relative frequencies must equal exactly 1 (or approximately 1 if decimals were rounded). Σ (f_k / n) = 0.2500 + 0.3125 + 0.1250 + 0.0625 + 0.2500 = 1.000 ✓
Key Takeaways
- Frequency distributions compact raw categorical data into a useful summary.
- Relative frequencies rescale the data into proportions, making comparisons easier across datasets of different sizes.
- The same tools will later apply to quantitative data, similar to the process in Estimating Mean and Testing Normality of Family Movie Running Times.
okay so let's begin with section 2.1 uh which deals entirely with categorical data right so when we work
with categorical data remember that's any data that is names labels addresses descriptors
right so um there may be a natural way to sort um so so you can collect them at the
ordinal level or maybe we don't even have that we just have the nominal level of measurement for for these data what i
have here is a simulated sample of categorical data
namely um these are descriptors of students at hypothetical students at arc
um who are either first year students second year third year fourth year um or they are
ready to transfer meaning they're going to transfer next semester so you'll notice that there are
four rows four columns so that means there's 16 data values here so i'm just going to
write that down so our sample size here because this is a sample is 16. that'll be important later
whenever we are going to be ready for organizing these data um
but you'll notice that if we want to sort them sorting in this case meaning
so to sort data is to organize them by some um organizing principle so you could say
okay put the first years together first and the second years so we'll decide that
um or it might be given to us so first year second year these are those the unique kinds of labels that we can
have right if we were talking about um gender or racial identity we would have
unique identifiers or variables that these data values then follow under
third year fourth year and transfer there might be more but these are all the ones that we have
in our in our data set so now that we've we have a sorting
principle right we would then actually sort them right this
you can use technology to help you so for instance if you're using um let me use a different color here
so for tech right you might be using excel to the microsoft office tool if you put all of these in a
column um there's a tool that allows you to sort alphabetically or
um in other organizing principles right by hand which isn't really tech but you could sort by hand if you have a
small enough data set and there are other tools available available to us
if you put them directly into ti-84 for instance if you have um if you wanted to but it's not really
preferenced here for categorical data it would sort it for you once you go to use tables
but anyway so once you've sorted your data right um we're going to sort them into
piles which we kind of are doing here by sorting them into each distinct variable which actually partitions our
data already but organizing this way isn't enough what we usually want to do is we want to
summarize our data right so data summarization refers to using
condensing our raw data this is our raw data raw categorical data we want to condense
our data in some way that still maintains the level of measurement
so the ways that we can do this one common way is to use a table
and the way that we can use the table is we can count how many of each distinct kind of label there are
so let me illustrate and then we'll get into what each one means
so i'm setting up two columns here for my table one of them is labeled category and the
other one is labeled count slash frequency count and frequency are interchangeable
okay but what these this means is for each one of our distinct labels right so first second
third i don't have enough room here but so i'll finish this on on a separate sheet um
the idea is for each one of these unique identifiers or labels for our categorical data
we have to count how many times each one occurs in our data set so just for the sake of illustration
i'll i'll do this properly on another sheet here but how many first-year students are
there represented in our data set so i count one two three
four just 4. so we put a 4 there corresponding to the first year students
for second year students right how many are there there's 1 2 3 4
five how many third year students okay one two and so on until we finished
going through our entire data set you'll notice then that as we go on each one of these labels should get
counted once exactly once so properly though what we're doing is we're setting up a
frequency distribution for categorical data that's what that
table is called so we have a category or what we call class
column and we have a count or what we call frequency column
now to finish up that example from earlier i'm going to use class and frequency as
our we're going to be using these these uh terms much more often than category and
count but category is helpful in this case because it helps us remember that we're
actually working with categorical data so remember those first years second years
third years fourth years and transfers and we already said we found four first years five second years and two
second years four five two and we go back and we count
how many fourth years and how many transfers i count one fourth year and one
two three four transfers okay so that's our frequency distribution and you'll know
that you did this correctly if when you add up the frequencies you should get the sample size back
so if we add it up right so that's 9 11 10 no 9 11
12 16. that is our that is our sample size so we did this correctly
okay and what we might write notationally we might say that the sum this notation is called
sum you might want to review summation notation in the appendix for each of our classes i'm going to use
a subscript k the sum of the frequencies which we denote by f sub k
so these are just labels right we're saying we're adding up all the frequencies
that has to add up to the sample size so that's how we know that the frequency table works
this frequency distribution and that's not the only way that we can organize our
categorical data we not so frequency is helpful in we're actually sorting everything and compressing it
into this table but unless we're very clear about what the sample size is or
if we have a good sense of relative size we might need to do something better
we might use something called relative frequency and what that is is we take each
frequency as a proportion or a ratio out of the total sample size
so remember this is sample size i'm going to use words here
and what this does is this rescales our table so that we understand it in terms of proportions
percentages ratios right so when you're using relative frequency
you probably want to round to the same precision so typically we'll round to no more than
four places after the decimal you can do more than that but i don't recommend it
so again our i'll set up our frequency distribution again but i'm going to add
a column when we do the relative frequency distributions we won't have the middle column
necessarily but you can if you want if it helps you set it up so now i'm going to have three
columns here so for my first year students second year students third year
fourth year and my transfer students okay and then so we said there were four five
two one and four four five two one and four until we'll bring that down again and to
calculate each relative frequency we're going to compute that frequency divided by remember what
was the sample size we said n equals 16. so 4 divided by 16 and you can leave it as a fraction or
if you want to represent it as a decimal number then you should actually compute that
now 4 16 that's 0.25 because that's a quarter but the rest we probably will need some
help figuring that out so pull out your calculator whatever you have
um i've had i am using my phone calculator because we don't need much more than that
now 5 16 that's 0.3125 2 16. is 0.125 and 1
16 is 0.0625 okay so each of these we're actually representing
as a so remember no more than four places after the decimal i added the zeros for just for the sake
of um clarity and so that it all looks the same but
so as we're as you're working with the relative frequencies remember there was that rule when we
worked with just the frequencies that they have to add up to the sample size
in this case because we divided each of them by the sample size they should add up to one right so you
can verify using your calculator as i'm doing right now and sometimes you'll be a little bit off
just because especially if you're rounding if you round your decimals then
you might be off by .01 or something very small but if you're not rounding then it
should be precise it should equal exactly one and so with that again that that
rule that tells you that you did this correctly for relative frequency we would say that the sum
remember this symbol sigma represents sum over all the classes
of the relative frequencies equals 1. so that's how you know you've done it correctly
and this will come back again in a later uh unit but you will you will be able to use this
not only with categorical data but also with quantitative data so we'll see that in a later video
A frequency distribution table lists each category and its count (frequency) of occurrences in the dataset. A relative frequency table adds a column showing each frequency expressed as a proportion of the total sample size, calculated by dividing the frequency by the total number of observations (n). Relative frequencies allow direct comparison between datasets of different sizes because they normalize counts to proportions that always sum to 1.
You must verify that the sum of all frequencies in the table equals the total sample size (n). For example, if you have 16 students total, the frequencies for all categories (e.g., 4 for First-year, 5 for Second-year, etc.) should add up to 16. If they don't, you have missed or overcounted some data points.
The sum of relative frequencies should always equal exactly 1, because they represent proportional parts of the whole (100% of the dataset). However, if you round the relative frequencies to a certain number of decimal places (e.g., 4 decimals), the sum may be approximately 1 (e.g., 0.9997 or 1.0003) due to rounding error, which is acceptable.
Relative frequencies rescale raw counts into proportions, making it easier to compare the composition of datasets with different total sizes. For example, a frequency of 100 in one dataset and 10 in another may represent the same proportion (0.10) if the total sizes are 1000 and 100, respectively. Relative frequencies highlight this proportional similarity, while raw frequencies might suggest differences.
You can create a frequency table manually for small datasets by sorting and counting each category. For larger datasets, technology like Excel or a TI-84 calculator is more efficient. Regardless of the method, the principles of identifying categories and counting occurrences remain the same.
The same concepts of frequency and relative frequency tables are extended to quantitative data (numerical measurements) in later sections. For quantitative data, you often group the numbers into bins (or intervals) and then create frequency and relative frequency distributions, exactly mirroring the process used for categories like student year classifications.
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