Fate of Individual Observations After Classification

Question

What happens to individual observations after data is grouped into classes in a frequency distribution?

Select an answer

What happens to individual observations after data is grouped into classes in a frequency distribution?

  1. They are used directly in all statistical calculations
  2. They are permanently deleted from the data
  3. They have no significance in further statistical calculations — class mark is used instead — Correct Answer
  4. They are rearranged in ascending order
Explanation:
Correct Answer Explanation

Once data is grouped into classes, individual observations have no significance in further statistical calculations. Instead, the class mark is used.

Key Points:
  • All values in a class are assumed equal to the class mark (mid-point).
  • Example: Class 20–30 (class mark = 25) contains 6 values: 25, 25, 20, 22, 25, 28. All treated as 25 in calculations.
  • This is the 'Loss of Information' — the price paid for making data manageable.
  • The gain: data becomes concise, comprehensible and easy to analyse.

📚 About this Topic — CH-3: Organisation of Data

This multiple choice question is from CH-3: Organisation of Data, NCERT Books, Statistics for Economics. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: Organisation of Data to strengthen your preparation.

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