Preparing Effective Charts and Graphs
SECTION 3E: Line Graph

Study the data and graphic below from a prospectus showing the share price of several mutual funds over a 12-month period. The prospectus is designed for a general audience interested in investing with the company. Focus on these questions:
  1. How effective is the type of graph chosen?

    This is the appropriate type of graph. Line graphs show changes in quantity over time and focus the reader's attention on this change.

  2. How appropriate for the audience is the amount of data presented? If it is inappropriate, recommend a different approach for presenting the data.

    Too many lines clutter the graph. The writer should use two or even three graphs to present the data for ten mutual funds. One strategy would be to classify the funds by category and present the funds from that category in one graph. For example, all high-risk mutual funds would be presented in one graph, all the medium-risk funds in another graph, and all the low-risk funds in a third.

  3. How effective is the scale?

    The minimum unit of the scale ($20) is too large to accurately convey the monthly fluctuations of the funds. The seven mutual funds that sell for less than $20 are hard to distinguish from one another.

REVISED GRAPH
The revised graph below fixes the problems described in the sample answers.
Figure 1. Monthly Share Price of Medium-Risk Funds during 2005
ORIGINAL GRAPH




Congratulations, you've completed Presenting Effective Charts and Graphs: A Tutorial by Roger Munger. I hope you've found it useful. Please e-mail with any comments about or suggestions for the tutorial.
HOME: Introduction to this tutorial
1. Overview of the Process
  1. Analyze Your Audience and Purpose
  2. Understand the Limitations of Spreadsheet Programs
  3. Enter Data into a Spreadsheet Program
  4. Select Data to Include in a Graphic
  5. Choose the Appropriate Kind of Graphic
  6. Customize the Graphic for Your Audience and Purpose
  7. Select Where to Place the Graphic in the Spreadsheet
  8. Insert the Graphic into a Word-Processing or Presentation Program
  9. Integrate the Graphic and the Text
2. Designing Effective Charts & Graphs
  1. Make Sure Your Graphic Has a Purpose
  2. Aim for Simplicity
  3. Be Honest
  4. Present a Manageable Amount of Information
  5. Follow Common Conventions for Graphics
  6. Label Your Graphic
3. Sample Graphics for Analysis
  1. Pie Chart
  2. Gantt Chart
  3. 100-Percent Horizontal Bar Graph
  4. Vertical Bar Graph
  5. Line Graph


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