Histogram

A histogram is a graphical representation of data that uses bars to show the frequency distribution of a dataset.
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Updated on Jun 18, 2024
Reading time 3 minutes

3 key takeaways

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  • Histograms display the distribution of numerical data by showing the frequency of data points within specified ranges or bins.
  • They are useful for understanding the shape, central tendency, and variability of data distributions.
  • Histograms help identify patterns, such as skewness, peaks, and gaps, in the dataset.

What is a histogram?

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A histogram is a type of bar chart that represents the frequency distribution of a dataset. Unlike regular bar charts, histograms group data into continuous ranges known as bins or intervals. Each bar in a histogram represents the number of data points that fall within a particular bin, making it easy to see how the data is distributed across different values.

Histograms are particularly useful in statistics for summarizing large datasets and identifying patterns or trends. By visually displaying the frequency of data points, histograms help in understanding the underlying distribution, such as whether the data is normally distributed, skewed, or has multiple modes.

How to create a histogram

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To create a histogram, follow these steps:

  1. Collect the data: Gather the numerical data you want to represent.
  2. Determine the number of bins: Decide how many intervals or bins to use. The number of bins can affect the appearance and interpretability of the histogram.
  3. Calculate the bin width: Divide the range of the data (maximum value – minimum value) by the number of bins to determine the width of each bin.
  4. Count the data points in each bin: Tally the number of data points that fall into each bin.
  5. Draw the bars: For each bin, draw a bar with a height corresponding to the number of data points in that bin.

Interpreting a histogram

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When interpreting a histogram, several key features can be observed:

  • Shape: The overall shape of the histogram can indicate the distribution pattern of the data (e.g., normal distribution, skewed distribution, bimodal distribution).
  • Central tendency: The peak(s) of the histogram show where the data points are concentrated, which helps identify the central tendency of the dataset.
  • Spread: The width of the histogram and the range of the bins provide insights into the variability and spread of the data.
  • Outliers: Any bars that are significantly taller or shorter than the others can indicate outliers or unusual data points.

Applications of histograms

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Histograms are widely used in various fields for different purposes:

  • Statistics: To summarize and analyze the distribution of data points in a dataset.
  • Quality control: To monitor process behavior and identify variations in manufacturing or production.
  • Finance: To analyze the distribution of financial returns, stock prices, or other economic indicators.
  • Research: To present experimental data and understand the distribution of variables in scientific studies.
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  • Bar charts
  • Frequency distribution
  • Normal distribution
  • Data visualization

Explore these related topics to further enhance your understanding of data representation and statistical analysis.


Sources & references

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Arti is a specialized AI Financial Assistant at Invezz, created to support the editorial team. He leverages both AI and the Invezz.com knowledge base, understands over 100,000 Invezz related data points, has read every piece of research, news and guidance we\'ve ever produced, and is trained to never make up new...