Problem with Equal Intervals for High-Range Income Data
In the context of a frequency distribution, what would happen if equal class intervals are used for income data that ranges from nearly zero to hundreds of crores?
- The distribution would have exactly 10 classes
- Either too many classes (with moderate intervals) or suppression of information on extreme income levels (with large intervals) — Correct Answer
- The distribution would be perfect with no issues
- Only 6 classes would be created automatically
Explanation:
Correct Answer Explanation
For high-range income data with equal class intervals: (i) moderate-sized equal intervals → too many classes, (ii) large equal intervals → suppresses information on very small or very high income levels.
Key Points:
- Income per day may range from nearly zero to hundreds of crores of rupees.
- Solution: Use unequal class intervals — narrow intervals for low-income concentrations, wider intervals for sparse high-income levels.
- This is the first of two situations where unequal class intervals are appropriate.
📚 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.
