Frequency Distribution

AAA

DEFINITION of 'Frequency Distribution'

A representation, either in a graphical or tabular format, which displays the number of observations within a given interval. The intervals must be mutually exclusive and exhaustive. Frequency distributions are usually used within a statistical context.

INVESTOPEDIA EXPLAINS 'Frequency Distribution'

The size of the intervals used in a frequency distribution will depend on the data being analyzed and the goals of the analyst. However, the most important factor is that the intervals used must be non-overlapping and contain all of the possible observations.

For example, a frequency distribution in a tabular format for weekly stock returns may look like:

Frequency Distribution
RELATED TERMS
  1. Sampling Error

    A statistical error to which an analyst exposes a model simply ...
  2. Absolute Frequency

    A statistical term describing the total number of trials or observations ...
  3. Statistics

    A type of mathematical analysis involving the use of quantified ...
  4. Sample

    A subset containing the characteristics of a larger population. ...
  5. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
  6. Mean-Variance Analysis

    The process of weighing risk against expected return. Mean variance ...
Related Articles
  1. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  2. What is the average salary for an accountant?
    Personal Finance

    What is the average salary for an accountant?

  3. Lognormal and Normal Distribution
    Fundamental Analysis

    Lognormal and Normal Distribution

  4. Where is cost of living lowest in the ...
    Economics

    Where is cost of living lowest in the ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center