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Graphs are picture representatives for 1 or more sets of information and how these visually relate
to one another. There are many types of charts and graphs of varied complexity. For almost any
numerical data set, there is a graph type that is appropriate for representing it. Graphs help you
present data in a meaningful way. It is one thing to see a data listed on a page and it’s another to
actually understand the details and trends of the data. A lot of the time, sets of data involve values
in the millions or billions. This is far too many to print out in a magazine or journal article. Using
a graph can help depict data and a well-made graph conveys information quickly. Here is a course
called Introduction to Statistics that shows you how graphs are used to display data.
Bar Graphs
Also known as a Pareto Diagram, a bar graph can be horizontal or vertical. Each axis is labelled
with either a categorical or a numerical variable. The bars’ heights are scaled according to their
values and the bars can be compared to each other. Bar graphs can be drawn in a 3-dimensional
way and compiled for data comparison about the same thing or location. So that more important
categories are emphasized, bars in a bar graphs are arranged in order of frequency.
Flow Charts
A flow chart displays schematic processes based on the outcome, validity, or answer to a previous
variable. Each of the flow chart’s shapes represents specific actions and the legend codes are
included to inform you. Flow charts consist of inputs and outputs, a start point and an end point
that basic symbols represent.
Pie Charts
Sometimes called a circle graph, pie charts represent the parts of a whole. Each ‘section’ or
‘slice of the pie is a data percentage. From biggest to smallest, segments are arranged in a
clockwise formation. This way, the pie chart features easy-to-compare subjects presented in a neat,
easy-to-understand way.
Pictograph
These are the first graph types that kids learn about. In pictographs, smaller picture represents a
certain amount of an item and the pictures in the graphs are stacked up one after another. Picture
fractions represent the portions represented by the picture. If an approximation would be estimated
or given, the pictograph is used for representing these amounts visually.
Line Graphs
Used to display comparisons between 2 variables, line graphs involve an x-axis horizontally and a
y-axis vertically on a grid. Dot-connected and grid-plotted lines are what comprise a line graph.
These lines monitor and compare various data sets. Usually, the x-axis represents time
measurements while the y-axis is a representative of measure or percentage of quantity. For this
reason, a line graph is used often for tracking variables of one or more subjects in time.
Histogram
When quantitative data is what you have, a histogram would be used to show it. This is a kind of
graph that also uses bars. Ranges of values are listed at the bottom and these are called
‘classes.’ Taller bars represent the classes with greater frequencies. You usually use histograms
to show information used for statistics, such as in this course called Statistics Made Easy.
Dot Plot
A hybrid between a stem and leaf plot and a histogram, dot plots consist of points or dots that are
positioned on top of appropriate class values.
Scatterplot
Scatterplots display paired data using the vertical or the y axis and a horizontal axis or the x axis.
The tools for statistics called correlation and regression are then used for showing trends on this
type of graph.
Other Graphs
What if your data does not work on any of the graphs mentioned above? Even if this list shows
you the most popular graphs available, it is not the entire list. There are other graphs out there that
are even more specialized and you will for sure find the one you need sooner or later. You might
also want to consider the fact that there may come a time when the graph you need has not been
invented just yet. At one point, for example, no one used bar graphs since these did not exist.
Currently, however, bar graphs are in spread sheet programs like Excel, relied on by hundreds of
companies. If you want to display data that you have, using your imagination and creating a graph
for it may be just the thing. This way, data is visualized in a new way and who knows, this may
work the way bar graph inventions did. Here is an article you might like about how to create
graphs using Excel.
Did this help? For more information about the applications of graphs, here is a course called
Workshop in Probability and Statistics where you can get a first-hand glimpse of which graph is
used with which type of information.
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Outliers
Look for unusual observations, also called outliers. Outliers can have a disproportionate effect on
time series models and produce misleading results. Try to identify the cause of any outliers and
correct any data-entry errors or measurement errors. Consider removing data values that are
associated with abnormal, one-time events, which are also called special causes.
The following time series plot shows an outlier that was caused by a data-entry error. A technician
accidentally entered the value 4 in the worksheet instead of 40.
Sudden shifts
Look for sudden shifts in the series or sudden changes to trends. Try to identify the cause of such
changes.
For example, the following time series plot shows a drastic shift in the cost of a process after 15
months. You should investigate the reason for the shift.
The following time series plot shows a clear upward trend. There may also be a slight curve in the
data, because the increase in the data values seems to accelerate over time.
You can use a time series analysis to model patterns and generate forecasts. For more information
on which analysis to use, go to Which time series analysis should I use?.
Seasonal pattern
These data show a seasonal pattern. The pattern repeats every 12 months.
Cyclic movements
These data show cyclic movements. The cycles do not repeat at regular intervals and do not have
the same shape.
Random variation
These data show random variation. There are no patterns or cycles.
Step 4: Assess whether seasonal changes are additive or multiplicative
If the magnitude of the seasonal changes is constant, then the seasonal changes are additive. If the
magnitude of the seasonal changes is greater when the data values are greater, then the seasonal
changes are multiplicative. The extra variability can make multiplicative seasonal changes harder
to forecast accurately.
Additive changes
In this example of additive seasonal changes, the data values tend to increase over time, but the
magnitude of the seasonal change remains the same.
Multiplicative changes
In this example of multiplicative seasonal changes, the magnitude of the seasonal change increases
over time as the data values increase.
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