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. Sample

    A subset containing the characteristics of a larger population. ...
  3. Statistics

    A type of mathematical analysis involving the use of quantified ...
  4. Absolute Frequency

    A statistical term describing the total number of trials or observations ...
  5. Altman Z-Score

    The output of a credit-strength test that gauges a publicly traded ...
  6. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
RELATED FAQS
  1. What is the difference between variance and standard deviation?

    Variance and standard deviation are both concepts that help statisticians and financial professionals understand differences ... Read Full Answer >>
  2. What variables are most important when making a prediction through sensitivity analysis?

    Sensitivity analysis is used in corporate finance and other fields as a means of making predictions based on changes in variables. ... Read Full Answer >>
  3. What types of stocks have a small difference between bid and ask prices?

    Generally, stocks that offer high liquidity have tight bid-ask spreads. Stocks that have a high volume and trade on a daily ... Read Full Answer >>
  4. What is the difference between expected return and variance?

    The expected return and variance are two statistical measures for analyzing investment portfolios. The expected return is ... Read Full Answer >>
  5. What are the most commonly used key performance metrics (KPIs) for small business ...

    Developing and tracking key performance indicators (KPIs) are pertinent aspects of running a successful small business. KPIs ... Read Full Answer >>
  6. How can a representative sample lead to sampling bias?

    A representative sample, like any other type of sample, by its very nature leads to a degree of sampling bias, or sampling ... Read Full Answer >>
Related Articles
  1. Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  2. Investing Basics

    What is the Rule of 70?

    The rule of 70 is an easy way to calculate how many years it will take for an investment to double in size.
  3. Fundamental Analysis

    Explaining Variance

    Variance is a measurement of the spread between numbers in a data set.
  4. Fundamental Analysis

    What is Quantitative Analysis?

    Quantitative analysis refers to the use of mathematical computations to analyze markets and investments.
  5. Fundamental Analysis

    Understanding the Simple Random Sample

    A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.
  6. Economics

    What is Systematic Sampling?

    Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.
  7. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  8. Fundamental Analysis

    Explaining the Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.
  9. Investing

    The Labor Market Recovery’s Missing Ingredient

    Job creation is running at the fastest pace since the 90s, and there is some evidence that wage growth is finally starting to accelerate, albeit modestly.
  10. Trading Strategies

    Best Undergraduate Degrees For Day Traders

    We look at some popular undergrad majors for those wanting to begin a career in the exciting world of fast-paced trading.

You May Also Like

Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  3. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  4. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  5. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
Trading Center