The formula to calculate the optimal number of bins using Sturges' Rule is:
\[ OB = \log_2(N) + 1 \]
Where:
Sturges' Rule is a simple formula that describes the optimal number of bins to use when making a histogram given a certain number of observations in a data set. An observation is a unique data point. For example, if a data set contains many numbers but the number 10 occurs twice, it counts as one observation.
Consider an example where:
Using the formula to calculate the optimal number of bins:
\[ OB = \log_2(100) + 1 = 7.64 \approx 8 \]
This means that the optimal number of bins for this example is 8.