Frequency Distribution

A A A

DEFINITION

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

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 because he or ...
  2. Absolute Frequency

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

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

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

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

    The process of weighing risk against expected return. Mean variance analysis ...
  7. Systematic Sampling

    A type of probability sampling method in which sample members from a larger ...
  8. Variance

    The spread between numbers in a data set, measuring Variance is calculated by ...
  9. Leptokurtic

    A statistical distribution where the points along the X-axis are clustered, ...
  10. Platykurtic

    A type of statistical distribution where the points along the X-axis are highly ...
Related Articles
  1. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  2. What are the odds of getting a perfect ...
    Personal Finance

    What are the odds of getting a perfect ...

  3. What's the difference between Bollinger ...
    Technical Indicators

    What's the difference between Bollinger ...

  4. Accelerating Returns With Continuous ...
    Bonds & Fixed Income

    Accelerating Returns With Continuous ...

  5. Calculating Covariance For Stocks
    Fundamental Analysis

    Calculating Covariance For Stocks

  6. Seven Market Anomalies Investors Should ...
    Investing Basics

    Seven Market Anomalies Investors Should ...

  7. What Are The Odds Of Scoring A Winning ...
    Investing Basics

    What Are The Odds Of Scoring A Winning ...

  8. Regression Basics For Business Analysis
    Investing Basics

    Regression Basics For Business Analysis

  9. Breaking Down The Geometric Mean
    Investing Basics

    Breaking Down The Geometric Mean

  10. Tracking Volatility: How The VIX Is ...
    Active Trading Fundamentals

    Tracking Volatility: How The VIX Is ...

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center