Investor Glossary-histogramInvestor Glossary-histogramInvestor Glossary-histogramInvestor Glossary-histogramInsightful stock market charts - Click here
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


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

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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