Question

What is 'loss of information' in classified data?

Answer 1

Classification of data as a frequency distribution summarises the raw data making it concise and comprehensible but it does not show the details that are found in raw data. Once, the data are grouped into classes, individual observation has no significance in further statistical calculations.

All values in a class interval are assumed to be equal to the middle value of the class interval instead of their actual value which causes considerable loss of information.