Arrange data in ascending values.
Assumes: order of observation not important (unlike reliability where order or time to failure is important)
X = {2,2,2,2,2,2,2,2, 3,3,3,3,3, 4,4,4,4, 5,5, 6}
Group ascending data in like intervals or cells
X = {[2,2,2,2,2,2,2,2], [3,3,3,3,3], [4,4,4,4], [5,5], [6]}
Assign a random variable to each cell X k (use sub k)
X = {[X 1 ], [X 2 ], [X 3 ], [X 4 ], [X 5 ]}
Count "frequency" of observations in each cell, f k