Types of Classification in Business Statistics


Classification of statistical data is made on the basis of the characteristics possessed by individuals in different groups of the units of the world.
There are two groups:

(i) classification on the descriptive characters.
(ii) classification on the numerical characters.

Classification According to Attributes

This is same as saying classification on descriptive basis. This type of classification can be studied by the following methods.
1. Simple classification
2. Manifold classification.

1.         Simple Classification
We know, that examples of descriptive are like study of friendship, love, poverty, liberty, and sex. In simple classification, only one problem is selected and is researched on, by dividing it into different subsection, or classes of two groups only. For example, poverty problems are put in one group and others in another group. If we want to study literacy then we put the group who are literate in one class and others in another class of illiterate. Such classification in which only one attribute is studied and the whole data is divided into two parts, is known as simple classification.

2.         Manifold Classification
As mentioned above, sometimes it is required to study more than one problem or more than one case. Here the whole data is divided into a number of classes. For example the study of literacy sex wise, that is we are studying the literacy and also studying the group of female and male sex, in order to know how is their attainment of literacy. The data is classified as follows:

i. Male who are literate             i. Male who are illiterate
ii. Female who are literate                     ii. Female who are illiterate.

This division of data, enables us to understand in especial the population of our country, whether, the persons are literate amongst female or in male. If we compare the present with the past, we will know the rate of improvement in literacy. Therefore a classification where more than one attribute (case) is under study; is known as manifold classification.

Classification According to Class-Intervals

It is based on data which has a direct quantitative measurement for example, age, income, height, weight, etc., are capable of direct measurements. Instead of saying those boys are tall and these other girls are short, means boys and girls are classified in a particular class interval of heights like from 5’-5” to 5’-7” are placed in one group and those of 5’-7” to 5’-9” are placed in another group and so on: These groups of heights class intervals. From 5’-5” to 5’-7” is one class interval where 5’-5” and 5’-7” are called the class limits. 5’-5” is the lower class limit and 5’-7” is the upper class limit. The difference between the upper class and the lower class limits is called class interval. The number of items that come under any class-interval is called frequency.

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