Step 1 :Given data: \(40\) students in total, \(25\) students play an instrument, \(20\) students are in band, and \(20\) students are not in band.
Step 2 :Create a two-way frequency table with the given data.
Step 3 :Since there are \(40\) students in total and \(20\) students are in band, there must be \(40 - 20 = 20\) students not in band.
Step 4 :Since there are \(25\) students who play an instrument and \(20\) students are in band, there must be \(25 - 20 = 5\) students who play an instrument and are in band.
Step 5 :Since there are \(25\) students who play an instrument and \(5\) students who play an instrument and are in band, there must be \(25 - 5 = 20\) students who play an instrument and are not in band.
Step 6 :Since there are \(20\) students who are not in band and \(20\) students who play an instrument and are not in band, there must be \(20 - 20 = 0\) students who do not play an instrument and are not in band.
Step 7 :Since there are \(40\) students in total and \(25\) students who play an instrument, there must be \(40 - 25 = 15\) students who do not play an instrument.
Step 8 :Since there are \(15\) students who do not play an instrument and \(0\) students who do not play an instrument and are not in band, there must be \(15 - 0 = 15\) students who do not play an instrument and are in band.
Step 9 :Final Answer: The two-way frequency table is as follows: \[\begin{array}{c|c|c|c} & \text{Band} & \text{Not Band} & \text{Total} \\ \hline \text{Instrument} & \boxed{5} & \boxed{20} & \boxed{25} \\ \hline \text{Not Instrument} & \boxed{15} & \boxed{0} & \boxed{15} \\ \hline \text{Total} & \boxed{20} & \boxed{20} & \boxed{40} \end{array}\]