Relative frequency definition, Mathematics

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Relative Frequency

This type of probability requires us to make some qualifications. We define probability of event A, occurring as the proportion of times A occurs, if we repeat the experiment several times under the same or similar conditions.

Example

Consider the following distribution of salaries in a finance company for February, 2002.

Salaries (Rs.)	Frequency	Relative Frequency (%)

2,000 - 5,000	2	4%
5,000 - 8,000	11	22%
8,000 - 11,000	18	36%
11,000 - 14,000	10	20%
14,000 - 17,000	7	14%
17,000 - 20,000	2	4%
	50	100%

For a subsequent month the salaries are likely to have the same distributions unless employees leave or have their salaries raised, or new people join. Hence we have the following probabilities obtained from the above relative frequencies.

Salaries (Rs.)	Probability
2,000 - 5,000	4%
5,000 - 8,000	22%
8,000 - 11,000	36%
11,000 - 14,000	20%
14,000 - 17,000	14%
17,000 - 20,000	4%
	100%

These probabilities give the chance that an employee chosen at random will be in a particular salary class. For example, the probability of an employee's salary being Rs.5,000 - Rs.8,000 is 22%.

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