Welcome back to data analytics for decision-making and in this module, 1B, we're really looking at

graphs. Graphical analysis, and we're going to consider pie and bar charts, histogram, line plot, scatter
plot, and some ideas around what makes a good graph in general. Before in Part C and D then we'll
look at descriptive methods and ethics but now this module is all about graphs so let's get into it.
Firstly, pie and bar charts. Very popular, well-known, easy to do in Excel and they're appropriate
when you have data that can be naturally categorised in a meaningful manner. So thinking about
qualitative variables for example or key groupings. Classic example might be budget so you know the
amount of budget could be divided into how much for research and development, how much for
marketing, how much for general operations, administration, etc. we have key meaningful categories.
But we're talking about graphs so let's have a look at one rather than see text. Well here's an example
of the pie chart. For example we have a fund, a mutual fund, Adrian fund and this is 2011
performance and this is a pie chart for the investment strategy so our money gets divided up into 10%
cash, 20% international stocks, 30% domestic and, well 30% domestic bonds, 40% domestic stocks.
So that's a nice way to sort of visually see the components and how the different investments so that
would be a pie chart. The same information could be displayed on a bar chart. And here we have
labels for each of the columns. What you might like to do on a bar chart, depending on what you're
trying to highlight, is order them so that you can see ok domestic stocks then bonds then international
stocks then cash. It's pretty easy with four columns but if you had some more columns might be a bit
harder to see the ordering unless you order it for the reader. Now notice the some key things here, I
have access labels so proportion of total investment I have on the axis label. And I have a nice chart
title and see those also the labels on the bars 40%, 30%, 20%, 10%. You could have those or
sometimes you don't have those and in this example notice I've also changed the axes it's the amount
invested but notice it takes a little bit longer to say international stocks how much. I've got to go
across there oh it's 40 million dollars, whereas if it had it just above like before, when we go back we
had that information you know written above the bars it was a bit faster. Again it depends on what
you're trying to highlight to the rate if the actual value is important you might like to include that but
if it's more about comparing between and the actual values it's just relative values and more important
maybe you don't. But again information to think about. Do I display that how don't I that's key
information here. But I think hopefully we're pretty safe with and pretty familiar with pie charts and
bar charts so we're going through those fairly quickly. So just to recap pie chart, the size of each slice
of the pie is proportional to the size of the category it represents, so bigger slices you know bigger
chunks, bigger amounts, bigger shares. Now that highlights the proportion of the whole naturally you
can see sort of how much of the pie or the pizza if you like to think about it that you are contributing
to for example again if it was that budget idea how much of the overall company's budget is your
division taking and you can clearly see that. Bar chart, it uses bars instead of slices and it's a bit easier
to compare categories to see which one is bigger. And I'm going to go back here just to highlight that
to you. So let's just go back for a moment now have a look at this without the text, it takes a while to
determine that the blue category is bigger than the red just looking at the pie like yeah it is a bit bigger
but immediately when you see it on a bar chart you can see domestic stocks bigger than domestic
bonds. Even when you don't have the amounts there it's clearly easy to compare the different
categories. So that's something to consider there.