Investor Glossary-histogramInvestor Glossary-histogramInvestor Glossary-histogramInvestor Glossary-histogramInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Histogram

The HTML to link to this page
 

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 x-axis and the frequencies are shown on the y-axis. 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 chi-square, 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...

Learn about investing with the Investor Glossary Term of the Day


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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use