Under What Circumstances Should You Consider Grouping Categories in a Frequency

question 42

Essay

Under what circumstances should you consider grouping categories in a frequency distribution? What special considerations must one take when creating categories? How might using categories inappropriately impact findings?

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Definitions:

Operating Activities

The day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its cash flow.

Investing Activity

Transactions and events that involve the purchase and/or sale of long-term assets and other investments, as shown in a company’s cash flow statement.

Income Statement

A financial document that reports a company's revenues, expenses, and net profit or loss over a specific period of time.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.