HELP!!
Here is a statistical report
# Portfolio’s Deviations from Benchmark Return, 2003-2014 (%)\
2003 - 2.48 2008 - N.89
2004 - N2.59 2009 - N9.19 N* Denotes ( negative number)
2005 - 9.47 2010 - N5.11
2006 - N.55 2011 - 1.33
2007 - N1.69 2012 - 6.84
2013 - 3.04 2014 - 4.72
What would be the cumulative relative frequency for the interval -1.71% ≤ x <2.03% ?
As I’m new to this concept please provide some explanation for solving such types of questions.
Thanks!
Count the number of returns that fall into the range −1.71% ≤ r < 2.03%.
Count the total number of returns.
The relative frequency is the former divided by the latter.
I am a bit confused by the question and answer. Isn’t your answer the relative frequency and not the cumulative relative frequency?
I thought the cumulative relative frequency would be: number of returns below 2.03% divided by total number of returns.
The question is a trick one. To find the cumulative relative frequency of the interval -1.71% ≤ x < 2.03%, simply ignore the first part of the interval, and just find x < 2.03% (think of the cumulative relative frequency as adding all the relative frequencies up until a certain point, accumulating them).
04, 06, 07, 08, 09, 10 and 11 fit this condition. n = 12.
7 / 12 = 58.33%, which should be your answer.
The above answer refers to relative frequency, which is not what the question asked (but is otherwise how you would go about ascertaining the relative frequency if asked to do so for the interval).
why are we using 5 bins? k=5?