# Articles on Stock markets

## News, Research and Analysis #### What is absolute frequency?

In statistics, the number of times that a specific value shows up in a data set is the absolute frequency of that value.

The absolute frequency can then be used to find the relative frequency, which is the probability that the specific value is observed in a given number of trials. The relative frequency (empirical probability) takes the absolute frequency and divides it by the total number of trials (cumulative frequency), and can be expressed as a ratio or percentage.

The absolute frequency is just one number: the number of observations of a specific value or defined set of values. If it is not a specific value, but instead a range of values that is being observed, this range is called a frequency bin, and the absolute frequency will be the number of occurrences of any value within that bin.

Another way of defining the values being observed is by class: different values can be grouped within a class, and the absolute frequency of the class can be counted. An educated investor should have a working knowledge of statistical terms and methods.