ANALYSIS AND INTERPRETATION OF DATA

Data is the plural of the latin word “datum” meaning “ a given”. Data refers to factual information in raw or unorganized
form. Data becomes useful when it is organized in some forms and made use of to reach a decision. Business data helps
business grow. If it is used correctly, business data can improve the profits of the company.

Tables are commonly used in collecting and organizing raw data during an experiment and also for representing final data
to be included in a paper or report. Most raw data are recorded in tabular form in a spread sheet, a lab notebook, or a
lab manual; but once recorded, data need to be reorganized, summarized, and reshaped into a final table or graph as
presented in the figure.

Data analysis on the other hand is the process used to get from raw data to the results that can be used to make
decisions. Results of data analysis can be used for detecting trends and making predictions

As every graph tells a story, the creator has to be a good story teller. She or he needs basic knowledge in creating and
interpreting the graphs produced. Also the person trying to understand the story needs some basic knowledge about
graphs. Otherwise reading a graph is like reading a text in a foreign language. I. Useful Phrases to Interpret the Graph
There are phrases and important vocabulary to be used in interpreting the data presented. There are also different ways
of describing trends or changes as well as propositions for describing the elements in the graph.
II. Steps to Interpret a Graph Step 1: Reading basics First you have to read the labels and the legend of the diagram. What
does it visualize?

In our example, x-Axis: You can read what year the data on sales and income were gathered. y-Axis: You can read the
amount in Philippine currency. Blue line: The amount of sales. Red line: The amount of net income. So this diagram
visualizes performance of Company C in terms of Sales and Net income for the past five years

Step 2: Reading important numbers

First we have to read the most important points. Important points are peaks, lows, turning points and intersection
points.

2014: A peak of the company’s sales. Net income reached zero point.
2011: The peak of the company’s net income.
2015: A low point of the company’s sales. The lowest point of the company’s net income.

Step 3: Define trends

Now it is important to define all significant trends. In our example,

Sales:

 From 2011 to 2012 it slightly increased.

 From 2012 to 2013 it dropped a little.
 From 2013 to 2014 it increased a lot.
 From 2014 to 2015 it dropped hugely.

Net Income:

 From 2011 to 2013 it decreased significantly.

 From 2013 to 2014 it dropped zero.
 From 2014 to 2015 it plummeted from zero to negative(loss)

Step 4: Compare trends

Knowing the trends, we can compare them, to find out differences and relations. Are there common trends? Is there a
pattern?
In our example,

 The net income continuously went down for the past five years.
 Even the net sales increased, the net income still decreased.

Analysis 5: Analyze trends

Finally we can establish hypotheses how the data is related. These hypotheses have to be questioned and assessed.

In our example,

A) “The large amount of sales does not ascertain high net income.”

 According to our diagram this is possible.

B) “The company’s performance in terms of net income is failing.”

 The company reached a negative income. This hypothesis could be correct.

Step 6: Predict a development

Based on the development of the diagram and the established hypothesis we can predict future developments of the
diagram.

But be careful: Predictions are always only speculations.

In our example,

 Towards the end the lines they both went down. If the trend continues, the company might face bankruptcy in
the future.

Conclusion

A diagram helps to draft a hypothesis. To check a hypothesis very often you need to do an experiment. Based on a
diagram, graph or chart we can predict a development in the future. But we have to be aware that it is only a prediction.

Summary:

The graph shows the performance of Company C in terms of sales and net income from 2011 to 2015. The company’s
sales was at its peak in 2014 but plummeted in 2015. While the sales was not stable for the past five years, the
company’s net income was continuously decreasing. This could mean that the company might face bankruptcy in the
future.

Additional Examples: Directions: Analyze and interpret the data presented in the graphs below.

Analysis and Interpretation:

The graph shows the comparison between the net income of company A, B and C from 2011 to 2013. Based from the
graph, Company B was the top-earning company among the three companies in 2011 and 2012.

Company A’s net income rapidly increased from 2011-2013 and was the top-earning company in 2013. If the trend
continues, this will mean company A will be the top-earning company in the following years.
Analysis and Interpretation:

The graph shows the sales of company B, D and E from 2011 to 2015. Based from the graph, there is no consistent trend
for Company B which means that the sales of the company have been stagnant for five consecutive years. Company D on
the other hand had a rapid growth of sales from 2013to 2015 while Company E shows a constant trend which means
that the sales of the company have been constantly increasing for the past five years. Although these three companies
started with the same sales in 2011, trend shows that company D will be the top-selling company during the following
years.

Analysis and Interpretation: The pie chart shows the breakdown of Company A sales from 2011 to 2015. The company
sales was in its peak in 2015 while sales was in its lowest in 2011. The trend shows that the sales is gradually increasing
each year. This could mean that the sales will still go up for next 5 years.