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Trading Terms

Frequency Distribution

A frequency chart is a visual representation of the occurrence of an event for various values of a variable. The y-axis represents the frequency, while the x-axis displays the different possible values of the measured variable. This chart helps us understand the distribution of the event and its relation to the variable. Through this, we can gather valuable insights and make informed decisions in the world of finance. Now, let's delve deeper into the significance of frequency charts in understanding financial data.
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