A frequency distribution can be created for which types of variables?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A frequency distribution is a way to organize and summarize data by displaying the number of occurrences of each value or category. This method is applicable to both categorical and quantitative variables, making it a versatile analytical tool.

For categorical variables, which consist of distinct categories without a natural order (such as colors, types of animals, or customer satisfaction ratings), a frequency distribution can show how many observations fall into each category. This helps in understanding the distribution of different categories within the dataset.

Similarly, for quantitative variables, which are numerical and can be measured or categorized (such as height, age, or sales figures), a frequency distribution can be created by grouping the data into intervals (or bins). This provides a clear picture of how values are distributed over a range, highlighting trends and patterns within the numerical data.

Thus, the ability to create frequency distributions for both types of variables is a foundational concept in data analysis, enabling analysts to glean insights from diverse datasets efficiently.

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