1. **Stating the problem:** Determine the number of classes (bins) for data grouping using Sturges' formula given the smallest production is 200000 and the largest is 500000. 2. **Formula used:** Sturges' formula for number of classes is: $$k = 1 + 3.3 \log_{10}(n)$$ where $n$ is the number of data points. 3. **Explanation:** This formula helps decide how many intervals to divide data into for frequency distribution. 4. **Given:** Number of data points $n = 1000$ (industries) 5. **Calculate:** $$k = 1 + 3.3 \log_{10}(1000)$$ Since $\log_{10}(1000) = 3$, $$k = 1 + 3.3 \times 3 = 1 + 9.9 = 10.9$$ 6. **Interpretation:** Number of classes $k$ is approximately 11. 7. **Final answer:** The number of classes according to Sturges' rule is **11**. **Answer choice:** e. 11