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Asked Jan 4, 2020

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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

70 | 64 | 99 | 55 | 64 | 89 | 87 | 64 |

62 | 38 | 67 | 70 | 60 | 69 | 78 | 39 |

75 | 56 | 71 | 51 | 99 | 68 | 95 | 86 |

57 | 53 | 47 | 50 | 55 | 81 | 80 | 98 |

51 | 36 | 63 | 66 | 85 | 79 | 83 | 70 |

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.

Step 1

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.

Step 2

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:

Step 3

The minimum value is 36 and ...

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