




A histogram is a graph that shows how many times an event occurs across various groups of data or classes. A histogram can give an approximate idea of the frequency distribution of the given data. To construct a histogram, the classes are usually plotted against the xaxis and the frequencies are shown on the yaxis. In appearance, a histogram looks like a series of rectangular bars adjacent to each other  very similar to a bar chart. You may also come across the term 'bins' being used instead of classes. The selection of the bin size is important. Indeed, an histogram with a bin size too large may hide key information whereas a bin size too small may highlight random data patterns. The height of each rectangle is equal to the frequency for that particular class (i.e. bin). By looking at a histogram you may be able to identify the shape of the frequency distribution (i.e chisquare, normal, etc.) It is also possible to visualize if the distribution is skewed or symmetric. The mode can also be determined through a histogram. The frequency that corresponds to the tallest rectangle in a histogram is the mode for that distribution. Statisticians often use a boxplot in conjunction with an histogram in data analysis.
Rate this Histogram definition...




Where is the market headed? The answer may surprise you. Find out with the exclusive & Barron's recommended charts of Chart of the Day. 

Popular Terms: in escrow, whollyowned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, exdividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, exdividend date, dividends payable, annual return, per diem


 