1. **Problem Statement:** We have a frequency distribution of annual commission earnings (in thousands) for 150 salespeople. We want to find the proportion of salespeople earning less than $18,000.
2. **Understanding the Ogive:** An ogive is a cumulative frequency graph. To construct it, we calculate cumulative frequencies up to each class boundary.
3. **Data and Cumulative Frequencies:**
- 0–5: 6
- 5–10: 12
- 10–15: 15
- 15–20: 35
- 20–25: 40
- 25–30: 23
- 30–35: 11
- 35–40: 8
Cumulative frequencies:
- Up to 5: 6
- Up to 10: 6 + 12 = 18
- Up to 15: 18 + 15 = 33
- Up to 20: 33 + 35 = 68
- Up to 25: 68 + 40 = 108
- Up to 30: 108 + 23 = 131
- Up to 35: 131 + 11 = 142
- Up to 40: 142 + 8 = 150
4. **Find cumulative frequency at $18,000:**
Since 18 lies between 15 and 20, we interpolate between cumulative frequencies at 15 and 20.
Let $CF_{15} = 33$ and $CF_{20} = 68$.
Interpolation formula:
$$ CF_{18} = CF_{15} + \frac{18 - 15}{20 - 15} \times (CF_{20} - CF_{15}) $$
$$ CF_{18} = 33 + \frac{3}{5} \times (68 - 33) = 33 + 0.6 \times 35 = 33 + 21 = 54 $$
5. **Calculate proportion:**
Total salespeople = 150
Proportion earning less than $18,000:
$$ \frac{54}{150} = 0.36 $$
**Final answer:** About 36% of the salespeople earn less than $18,000 annually.
Ogive Proportion 591773
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