Quantitative Methods Q95
0. The following table shows the average monthly returns of a portfolio over the past one year:
| Month | Return(%) | Month | Return(%) |
| January | 10% | July | 5% |
| February | 15% | August | 6% |
| March | 14% | September | 7.5% |
| April | 11% | October | 9% |
| May | 8% | November | 12% |
| June | 3% | December | 11% |
The following intervals are used for the construction of the frequency polygon:
| Interval |
| 1 < r < 3 |
| 4 < r < 6 |
| 7 < r < 9 |
| 10 < r < 12 |
| 13 < r < 15 |
The cumulative relative frequency for the interval ‘10 ≤ r ≤ 12’ is equal to:
- Option : C
- Explanation :
Interval Frequency RelativeFrequency Cumulative Relative Frequency 1 < r < 3 1 8.33% 8.33% 4 < r < 6 2 16.67% 25% 7 < r < 9 3 25% 50% 10 < r < 12 4 33.33% 83.33% 13 < r < 15 2 16.67% 100% Relative Frequency = Frequency / Total Observations
Cumulative relative frequency is the sum of subsequent relative frequencies. Thus the cumulative relative frequency is 83.33% for the interval 10 < r <12. The cumulative frequency distribution allows us to see how many or what percent of the observations lie below a certain value.
