Chapter 2

Organizing and
Visualizing Variables

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 1

 Objectives
In this chapter you learn:
 Organizing categorical variables.
 Organizing numerical variables.
 Visualizing categorical variables.
 Visualizing numerical variables.
 Organizing and visualizing a mix of variables.
 The challenge in organizing and visualizing
variables.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 2

 Organizing Data Creates Both
Tabular And Visual Summaries
DCOVA
 Summaries both guide further exploration and
sometimes facilitate decision making.

 Visual summaries enable rapid review of larger

amounts of data & show possible significant
patterns.

 Often, the Organize and Visualize step in

DCOVA occur concurrently.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 3

Categorical Data Are Organized By
Utilizing Tables
DCOVA
Categorical
Data

Tallying Data

One Two
Categorical Categorical
Variable Variables

Summary Contingency
Table Table

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 4

 Organizing Categorical Data:
Summary Table
DCOVA
 A summary table tallies the frequencies or percentages of items in a set
of categories so that you can see differences between categories.

Main Reason Young Adults Shop Online

Reason For Shopping Online? Percent

Better Prices 37%
Avoiding holiday crowds or hassles 29%
Convenience 18%
Better selection 13%
Ships directly 3%

Source: Data extracted and adapted from “Main Reason Young Adults Shop Online?”
USA Today, December 5, 2012, p. 1A.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 5

 A Contingency Table Helps Organize
Two or More Categorical Variables
DCOVA
 Used to study patterns that may exist between
the responses of two or more categorical
variables.

 Cross tabulates or tallies jointly the responses

of the categorical variables.

 For two variables the tallies for one variable are

located in the rows and the tallies for the
second variable are located in the columns.
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 6
 Contingency Table - Example
DCOVA
 A random sample of 400
invoices is drawn. Contingency Table Showing
Frequency of Invoices Categorized
 Each invoice is categorized By Size and The Presence Of Errors
as a small, medium, or large No
amount. Errors Errors Total

 Each invoice is also Small 170 20 190

Amount
examined to identify if there
Medium 100 40 140
are any errors. Amount
 This data are then organized Large 65 5 70
in the contingency table to Amount
the right. Total 335 65 400

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 7

 Contingency Table Based On
Percentage Of Overall Total
DCOVA
No
Errors Errors Total 42.50% = 170 / 400
Small 170 20 190 25.00% = 100 / 400
Amount 16.25% = 65 / 400
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 42.50% 5.00% 47.50%
Total 335 65 400 Amount
Medium 25.00% 10.00% 35.00%
Amount
83.75% of sampled invoices
Large 16.25% 1.25% 17.50%
have no errors and 47.50% Amount
of sampled invoices are for Total 83.75% 16.25% 100.0%
small amounts.
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 8
 Contingency Table Based On
Percentage of Row Totals
DCOVA
No
Errors Errors Total 89.47% = 170 / 190
Small 170 20 190 71.43% = 100 / 140
Amount 92.86% = 65 / 70
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 89.47% 10.53% 100.0%
Total 335 65 400 Amount
Medium 71.43% 28.57% 100.0%
Amount
Medium invoices have a larger
Large 92.86% 7.14% 100.0%
chance (28.57%) of having Amount
errors than small (10.53%) or Total 83.75% 16.25% 100.0%
large (7.14%) invoices.
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 9
 Contingency Table Based On
Percentage Of Column Totals
DCOVA
No
Errors Errors Total 50.75% = 170 / 335
Small 170 20 190 30.77% = 20 / 65
Amount
Medium 100 40 140
Amount No
Large 65 5 70 Errors Errors Total
Amount Small 50.75% 30.77% 47.50%
Total 335 65 400 Amount
Medium 29.85% 61.54% 35.00%
Amount
There is a 61.54% chance
Large 19.40% 7.69% 17.50%
that invoices with errors are Amount
of medium size. Total 100.0% 100.0% 100.0%

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 10

 Tables Used For Organizing
Numerical Data
DCOVA
Numerical Data

Ordered Array Frequency Cumulative

Distributions Distributions

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 11

 Organizing Numerical Data:
Ordered Array
DCOVA
 An ordered array is a sequence of data, in rank order, from the
smallest value to the largest value.
 Shows range (minimum value to maximum value).
 May help identify outliers (unusual observations).

Age of Day Students

Surveyed
16 17 17 18 18 18
College
Students 19 19 20 20 21 22
22 25 27 32 38 42
Night Students
18 18 19 19 20 21
23 28 32 33 41 45
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 12
 Organizing Numerical Data:
Frequency Distribution
DCOVA
 The frequency distribution is a summary table in which the data are
arranged into numerically ordered classes.

 You must give attention to selecting the appropriate number of class

groupings for the table, determining a suitable width of a class grouping,
and establishing the boundaries of each class grouping to avoid
overlapping.

 The number of classes depends on the number of values in the data. With
a larger number of values, typically there are more classes. In general, a
frequency distribution should have at least 5 but no more than 15 classes.

 To determine the width of a class interval, you divide the range (Highest
value–Lowest value) of the data by the number of class groupings desired.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 13

 Organizing Numerical Data:
Frequency Distribution Example
DCOVA

Example: A manufacturer of insulation randomly

selects 20 winter days and records the daily high
temperature.

24, 35, 17, 21, 24, 37, 26, 46, 58, 30, 32, 13, 12, 38, 41, 43, 44, 27, 53, 27

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 14

 Organizing Numerical Data:
Frequency Distribution Example
DCOVA
 Sort raw data in ascending order:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58.
 Find range: 58 - 12 = 46.
 Select number of classes: 5 (usually between 5 and 15).
 Compute class interval (width): 10 (46/5 then round up).
 Determine class boundaries (limits):
 Class 1: 10 but less than 20.
 Class 2: 20 but less than 30.
 Class 3: 30 but less than 40.
 Class 4: 40 but less than 50.
 Class 5: 50 but less than 60.
 Compute class midpoints: 15, 25, 35, 45, 55.
 Count observations & assign to classes.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 15

 Organizing Numerical Data: Frequency
Distribution Example
DCOVA
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Class Midpoints Frequency

10 but less than 20 15 3

20 but less than 30 25 6
30 but less than 40 35 5
40 but less than 50 45 4
50 but less than 60 55 2
Total 20

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 16

 Organizing Numerical Data: Relative &
Percent Frequency Distribution Example
DCOVA
Relative
Class Frequency Percentage
Frequency
10 but less than 20 3 .15 15%
20 but less than 30 6 .30 30%
30 but less than 40 5 .25 25%
40 but less than 50 4 .20 20%
50 but less than 60 2 .10 10%
Total 20 1.00 100%

Relative Frequency = Frequency / Total, e.g. 0.10 = 2 / 20

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 17

 Organizing Numerical Data: Cumulative
Frequency Distribution Example
DCOVA
Cumulative Cumulative
Class Frequency Percentage
Frequency Percentage

10 but less than 20 3 15% 3 15%

20 but less than 30 6 30% 9 45%
30 but less than 40 5 25% 14 70%
40 but less than 50 4 20% 18 90%
50 but less than 60 2 10% 20 100%
Total 20 100% 20 100%

Cumulative Percentage = Cumulative Frequency / Total * 100 e.g. 45% = 100*9/20

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 18

Why Use a Frequency Distribution?
DCOVA
 It condenses the raw data into a more
useful form.
 It allows for a quick visual interpretation of
the data.
 It enables the determination of the major
characteristics of the data set including
where the data are concentrated /
clustered.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 19

 Frequency Distributions:
Some Tips
DCOVA
 Different class boundaries may provide different pictures for
the same data (especially for smaller data sets).

 Shifts in data concentration may show up when different

class boundaries are chosen.

 As the size of the data set increases, the impact of

alterations in the selection of class boundaries is greatly
reduced.

 When comparing two or more groups with different sample

sizes, you must use either a relative frequency or a
percentage distribution.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 20

Going From Classes To Excel Bins
DCOVA
 Microsoft Excel creates distribution tables using bins
(named by their upper limit) rather than classes.

Class Excel Bin Name

An extra bin
9.99 added in Excel
10 but less than 20 19.99 slightly less than
the smallest
20 but less than 30 29.99 observation
30 but less than 40 39.99
40 but less than 50 49.99
50 but less than 60 59.99

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 21

 Visualizing Categorical Data
Through Graphical Displays
DCOVA
Categorical
Data
Visualizing Data

Summary Contingency
Table For One Table For Two
Variable Variables

Bar Pareto Side By Side Doughnut

Chart Chart Bar Chart Chart

Pie or
Doughnut Chart

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 22

 Visualizing Categorical Data:
The Bar Chart
DCOVA
 The bar chart visualizes a categorical variable as a series of bars. The
length of each bar represents either the frequency or percentage of
values for each category. Each bar is separated by a space called a gap.

Reason For Percent

Shopping Online?
Better Prices 37%
Avoiding holiday 29%
crowds or hassles
Convenience 18%
Better selection 13%
Ships directly 3%

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 23

 Visualizing Categorical Data:
The Pie Chart
DCOVA
 The pie chart is a circle broken up into slices that represent categories.
The size of each slice of the pie varies according to the percentage in
each category.

Reason For Shopping Percent

Online?
Better Prices 37%
Avoiding holiday crowds or 29%
hassles
Convenience 18%
Better selection 13%
Ships directly 3%

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 24

 Visualizing Categorical Data:
The Doughnut Chart DCOVA
 The doughnut chart is the outer part of a circle broken up into pieces
that represent categories. The size of each piece of the doughnut varies
according to the percentage in each category.
Doughnut Chart of Reasons to Shop Online

Reason For Shopping Percent

Online?
Better Prices 37%
Avoiding holiday crowds or 29%
hassles
Convenience 18%
Better selection 13%
Ships directly 3%

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 25

 Visualizing Categorical Data:
The Pareto Chart
DCOVA
 Used to portray categorical data (nominal
scale).
 A vertical bar chart, where categories are
shown in descending order of frequency.
 A cumulative polygon is shown in the same
graph.
 Used to separate the “vital few” from the “trivial
many.”
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 26
 Visualizing Categorical Data:
The Pareto Chart (con’t) DCOVA
Ordered Summary Table For Causes
Of Incomplete ATM Transactions
Cumulative
Cause Frequency Percent Percent
Warped card jammed 365 50.41% 50.41%
Card unreadable 234 32.32% 82.73%
ATM malfunctions 32 4.42% 87.15%
ATM out of cash 28 3.87% 91.02%
Invalid amount requested 23 3.18% 94.20%
Wrong keystroke 23 3.18% 97.38%
Lack of funds in account 19 2.62% 100.00%
Total 724 100.00%
Source: Data extracted from A. Bhalla, “Don’t Misuse the Pareto Principle,” Six Sigma Forum
Magazine, May 2009, pp. 15–18.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 27

 Visualizing Categorical Data:
The Pareto Chart (con’t) DCOVA

The “Vital
Few”
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 28
 Visualizing Categorical Data:
Side By Side Bar Charts DCOVA
 The side by side bar chart represents the data from a contingency table.

No
Errors Errors Total
Invoice Size Split Out By Errors
Small 50.75% 30.77% 47.50% & No Errors
Amount
Medium 29.85% 61.54% 35.00% Errors

Amount
Large 19.40% 7.69% 17.50% No Errors

Amount
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Total 100.0% 100.0% 100.0% Large Medium Small

Invoices with errors are much more likely to be of

medium size (61.5% vs 30.8% & 7.7%).

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 29

 Visualizing Categorical Data:
Doughnut Charts DCOVA
 A Doughnut Chart can be used to represent the data from a contingency table.

No
Invoice Size & Errors
Errors Errors Total Inner Ring With Errors, Outer Ring No Errors

Small 50.75% 30.77% 47.50% 19.4%

Amount 7.7%
30.8%
30.8%

Medium 29.85% 61.54% 35.00%

61.5%
Amount
29.9%
Large 19.40% 7.69% 17.50%
Amount
Small Medium Large

Total 100.0% 100.0% 100.0%

Invoices with errors are much more likely to be of

medium size (61.5% vs 30.8% & 7.7%).

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 30

 Visualizing Numerical Data
By Using Graphical Displays
DCOVA
Numerical Data

Frequency Distributions
Ordered Array and
Cumulative Distributions

Stem-and-Leaf
Histogram Polygon Ogive
Display

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 31

 Stem-and-Leaf Display
DCOVA

 A simple way to see how the data are distributed

and where concentrations of data exist.

METHOD: Separate the sorted data series

into leading digits (the stems) and
the trailing digits (the leaves).

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 32

 Organizing Numerical Data:
Stem and Leaf Display
DCOVA
 A stem-and-leaf display organizes data into groups (called
stems) so that the values within each group (the leaves)
branch out to the right on each row.
Age of College Students

Age of Day Students Day Students Night Students

Surveyed
16 17 17 18 18 18 Stem Leaf
College Stem Leaf
Students 19 19 20 20 21 22
1 67788899 1 8899
22 25 27 32 38 42
Night Students 2 0012257 2 0138
18 18 19 19 20 21
3 28 3 23
23 28 32 33 41 45
4 2
4 15

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 33

 Visualizing Numerical Data:
The Histogram
DCOVA

 A vertical bar chart of the data in a frequency distribution is

called a histogram.

 In a histogram there are no gaps between adjacent bars.

 The class boundaries (or class midpoints) are shown on the

horizontal axis.

 The vertical axis is either frequency, relative frequency, or

percentage.

 The height of the bars represent the frequency, relative

frequency, or percentage.
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 34
 Visualizing Numerical Data:
The Histogram
DCOVA
Relative
Class Frequency Percentage
Frequency

10 but less than 20 3 .15 15

20 but less than 30 6 .30 30
30 but less than 40 5 .25 25
40 but less than 50 4 .20 20
50 but less than 60 2 .10 10
8
Total 20 1.00 100
Histogram:Age
Histogram: Temperature
Of Students
6

Frequency
4
(In a percentage
histogram the vertical
axis would be defined to 2
show the percentage of
observations per class).
0
5 15 25 35 45 55 More

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 35

 Visualizing Numerical Data:
The Polygon
DCOVA

 A percentage polygon is formed by having the midpoint of

each class represent the data in that class and then connecting
the sequence of midpoints at their respective class
percentages.

 The cumulative percentage polygon, or ogive, displays the

variable of interest along the X axis, and the cumulative
percentages along the Y axis.

 Useful when there are two or more groups to compare.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 36

Visualizing Numerical Data:
The Frequency Polygon DCOVA
Useful When Comparing Two or More Groups

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 37

Visualizing Numerical Data:
The Percentage Polygon
DCOVA

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 38

Visualizing Two Numerical Variables
By Using Graphical Displays
DCOVA

Two Numerical
Variables

Scatter Time-
Plot Series
Plot

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 39

 Visualizing Two Numerical
Variables: The Scatter Plot
DCOVA
 Scatter plots are used for numerical data consisting of paired
observations taken from two numerical variables.

 One variable is measured on the vertical axis and the other

variable is measured on the horizontal axis.

 Scatter plots are used to examine possible relationships

between two numerical variables.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 40

 Scatter Plot Example
DCOVA

Volume Cost per

per day day Cost per Day vs. Production Volume
23 125
250
26 140
200
Cost per Day

29 146
150
33 160
100
38 167
50
42 170
0
50 188
20 30 40 50 60 70
55 195
Volume per Day
60 200

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 41

Visualizing Two Numerical
Variables: The Time Series Plot
DCOVA
 A Time-Series Plot is used to study
patterns in the values of a numeric
variable over time.

 The Time-Series Plot:

 Numeric variable is measured on the

vertical axis and the time period is

measured on the horizontal axis.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 42

 Time Series Plot Example
Number of
DCOVA
Year Franchises
2007 43
2008 54
2009 60
2010 73
2011 82
2012 95
2013 107 Number of Franchises, 2007 to 2015
2014 99 120

100
2015 95
Number of Franchises

80

60

40

20

0
2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 43

Organizing Many Categorical Variables:
The Multidimensional Contingency Table
DCOVA
 A multidimensional contingency table is constructed by
tallying the responses of three or more categorical variables.

 In Excel you create a Pivot Table to yield an interactive

display of this type.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 44

Using Excel Pivot Tables To Organize &
Visualize Many Variables
DCOVA
A Pivot Table:
 Summarizes variables as a multidimensional summary

table.
 Allows interactive changing of the level of
summarization and formatting of the variables.
 Allows you to interactively “slice” your data to
summarize subsets of data that meet specified criteria.
 Can be used to discover possible patterns and
relationships in multidimensional data that simpler
tables and charts would fail to make apparent.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 45

 A Multidimensional Contingency Table
Tallies Responses Of Three or More
Categorical Variables
DCOVA

Two Dimensional Table Showing Three Dimensional Table

The Mean 10 Year Return % Showing The Mean 10 Year
Broken Out By Type Of Fund & Return % Broken Out By Type
Risk Level. Of Fund, Market Cap, &Risk
Level.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 46

 Data Discovery Methods Can
Yield Initial Insights Into Data
DCOVA
 Data discovery methods enable the
performance of preliminary analyses by
manipulating interactive summarizations.
 Are used to:
 Take a closer look at historical or status data.
 Review data for unusual values.
 Uncover new patterns in data.
 Drill-down is perhaps the simplest form of data
discovery.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 47

Drill-Down Reveals The Data
Underlying A Higher-Level Summary
DCOVA
Results of drilling down to
the details about large
market cap growth funds with
high risk.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 48

Some Business Analytics Methods
Start With Many Variables
DCOVA
 These methods allow you to filter data by
exploring specific combinations of categorical
values or numerical ranges.

 In Excel slicers are used to do this filtering.

 By clicking buttons in the slicer panels you ask

questions about your data.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 49

 Example Of Slicers For The
Retirement Funds Workbook
DCOVA
With the four slicers below, you can ask questions such as:
1. What are the attributes of the fund(s) with the lowest expense ratio?
2. Which fund(s) in the sample have the highest expense ratio?
3. What are the expense ratios associated with mid-cap funds that have
a star rating of five?

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 50

 Answering Questions One & Three
The answer to question 1 is a growth fund with a DCOVA
large market cap and a five-star rating.

For question 3, you observe that 0.88 and 1.44

are the expense ratios associated with mid-cap
funds that have a star rating of five.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 51

More Complex Displays Are Also Possible
DCOVA
A seven-slicer panel in which the five highest turnover ratio
percentages have been selected to reveal the identity and the
attributes of the funds associated with those percentages.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 52

A PivotChart Filters Data By Exploring Specific
Combinations Of Categorical Variables Visually
DCOVA

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 53

Sparklines Are Compact Time-Series
Visualizations Of Numerical Variables
DCOVA

Movie
revenues
by week
per month

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 54

 The Challenges in Organizing
and Visualizing Variables DCOVA

 When organizing and visualizing data need to

be mindful of:
 The limits of other’s ability to perceive and
comprehend.
 Presentation issues that can undercut the usefulness
of methods from this chapter.
 It is easy to create summaries that:
 Obscure the data or
 Create false impressions.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 55

An Example Of Obscuring Data,
Information Overload
DCOVA

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 56

 False Impressions Can Be
Created In Many Ways DCOVA

 Selective summarization:
 Presenting only part of the data collected.

 Improperly constructed charts:

 Potential pie chart issues.
 Improperly scaled axes.
 A Y axis that does not begin at the origin or is a
broken axis missing intermediate values.

 Chartjunk.
Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 57
An Example of Selective Summarization, These
Two Summarizations Tell Totally Different Stories
DCOVA

Change
from
Prior
Company Year Company Year 1 Year 2 Year 3
A +7.2% A -22.6% -33.2% +7.2%
B +24.4% B -4.5% -41.9% +24.4%
C +24.9% C -18.5% -31.5% +24.9%
D +24.8% D -29.4% -48.1% +24.8%
E +12.5% E -1.9% -25.3% +12.5%
F +35.1% F -1.6% -37.8% +35.1%
G +29.7% G +7.4% -13.6% +29.7%

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 58

How Obvious Is It That Both Pie Charts
Summarize The Same Data? DCOVA

Why is it hard to tell? What would you do to improve?

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 59

 Graphical Errors:
No Relative Basis DCOVA

Bad Presentation Good Presentation

A’s received by A’s received by
Freq. students. % students.
30%
300

200 20%

100 10%

0 0%
FR SO JR SR FR SO JR SR

FR = Freshmen, SO = Sophomore, JR = Junior, SR = Senior

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 60

 Graphical Errors:
Compressing the Vertical Axis
DCOVA

Bad Presentation  Good Presentation

Quarterly Sales Quarterly Sales
$ $
200 50

100 25

0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 61

 Graphical Errors: No Zero Point
on the Vertical Axis
DCOVA

Bad Presentation
 Good Presentations

Monthly Sales $ Monthly Sales

$ 45
45
42
42 39
39 36
36 0
J F M A M J J F M A M J

Graphing the first six months of sales

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 62

Graphical Errors: Chart Junk,
Can You Identify The Junk?
DCOVA
Bad Presentation  Good Presentation

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 63

Graphical Errors: Chart Junk,
Can You Identify The Junk?
DCOVA
Bad Presentation  Good Presentation

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 64

Graphical Errors: Chart Junk,
Can You Identify The Junk?
DCOVA

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 65

Graphical Errors: Chart Junk,
Can You Identify The Junk?
DCOVA

Bad Presentation  Good Presentation

Minimum Wage Minimum Wage
1960: $1.00
$
4
1970: $1.60
2
1980: $3.10
0
1990: $3.80 1960 1970 1980 1990

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 66

 In Excel It Is Easy To
Inadvertently Create Distortions

 Excel often will create a graph where the

vertical axis does not start at 0.

 Excel offers the opportunity to turn simple

charts into 3-D charts and in the process can
create distorted image.

 Unusual charts offered as choices by Excel will

most often create distorted images.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 67

 Best Practices for Constructing
Visualizations DCOVA

 Use the simplest possible visualization.

 Include a title & label all axes.
 Include a scale for each axis if the chart contains axes.
 Begin the scale for a vertical axis at zero & use a
constant scale.
 Avoid 3D or “exploded” effects & the use of chartjunk.
 Use consistent colorings in charts meant to be compared.
 Avoid using uncommon chart types including radar,
surface, bubble, cone, and pyramid charts.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 68

 Chapter Summary
In this chapter we covered:
 Organizing categorical variables.
 Organizing numerical variables.
 Visualizing categorical variables.
 Visualizing numerical variables.
 Organizing and visualizing a mix of variables.
 The challenge in organizing and visualizing
variables.

Copyright © 2017 Pearson Education, Ltd. Chapter 2 - 69