Shortfall Risk, Safety-first Ratio, an ...
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Guide to Selecting Visualization Types
- For numerical data, use a histogram, frequency polygon, or cumulative distribution chart.
- For category-based data, use a bar chart, tree-map, or heat map.
- For unstructured data, use a word cloud.
- For displaying relationships between two variables, use a scatter plot.
- For displaying relationships among more than two variables, use a scatter plot matrix or heat map.
- For displaying numerical data distributions, use a histogram, frequency polygon, or cumulative distribution chart.
- For displaying categorical data, use a bar chart, tree-map, or heat map.
- To draw a comparison over time, use a line chart for two variables and a bubble line chart for three.
- For drawing a comparison among categories, use a bar chart, tree-map, or heat map.
Common Pitfalls
The following are the four common pitfalls that we should avoid while using charts and graphs:
- Selecting the wrong chart type will occsion an inaccurate interpretation of data.
- Selectively plotting data could prove an inaccurate relationship.
- Data plotted in a truncated graph, e.g., having a y-axis that does not start at zero, could inaccurately show significant differences when there is really just a small difference.
- Scaling the axes incorrectly, for instance, by setting a maximum that is higher than necessary on the y-axis, can result in a graph that appears less steep and less volatile.
Question
Which of the following graphs is the most appropriate to use for plotting stock price change over a five-year period?
- Line chart.
- Bubble line chart.
- Frequency polygon.
Solution
The correct answer is A.
A line chart is used to display the change of data series over time.
B is incorrect. In a bubble line chart, data points are represented by bubbles of varying sizes. The bubbles represent a third dimension of the data.
C is incorrect. The frequency polygon and the cumulative frequency distribution chart are also line charts. However, they represent data frequency distributions.
Sergio Torrico
2021-07-23
Excelente para el FRM 2
Escribo esta revisión en español para los hispanohablantes, soy de Bolivia, y utilicé
AnalystPrep para dudas y consultas sobre mi preparación para el FRM nivel 2 (lo tomé una sola vez y aprobé muy bien), siempre tuve un soporte claro, directo y rápido, el material sale rápido cuando hay cambios en el temario de GARP, y los ejercicios y exámenes son muy útiles para practicar.
diana
2021-07-17
So helpful. I have been using the videos to prepare for the CFA Level II exam. The videos signpost the reading contents, explain the concepts and provide additional context for specific concepts.
The fun light-hearted analogies are also a welcome break to some very dry content.
I usually watch the videos before going into more in-depth reading and they are a good way to avoid being overwhelmed by the sheer volume of content when you look at the readings.
Kriti Dhawan
2021-07-16
A great curriculum provider. James sir explains the concept so well that rather than memorising it, you tend to intuitively understand and absorb them.
Thank you ! Grateful I saw this at the right time for my CFA prep.
nikhil kumar
2021-06-28
Very well explained and gives a great insight about topics in a very short time. Glad to have found Professor Forjan's lectures.
Marwan
2021-06-22
Great support throughout the course by the team, did not feel neglected
Benjamin anonymous
2021-05-10
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Daniel Glyn
2021-03-24
I have finished my FRM1 thanks to AnalystPrep. And now using AnalystPrep for my FRM2 preparation. Professor Forjan is brilliant. He gives such good explanations and analogies. And more than anything makes learning fun. A big thank you to Analystprep and Professor Forjan. 5 stars all the way!
michael walshe
2021-03-18
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