a grouping of data into mutually exclusive classes showing the numberof observations in each class.1. Decide on the number of classes. 2 to the k rule. 2^k>n (k classes, n observations), e.g.2^k>40, k>ln(40)/ln(2), k>5.322, set k=62. Determine the class interval or width. �≥�−�/� where i=interval, H=max, L=min3. Set the individual class limits. Avoid overlapping or unclear class limits 1<=Rate<34. Tally the list prices into the classes.5. Count the number of items in each class. The number of observations in each class iscalled the class frequency.