by

Dr. Rehan Ahmad Khan

GRAPHS & CHARTS

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Graphs and Charts:
Graphs sometimes do not always get the credit they deserve in the business
world. Often, they are joked about as being silly visual aids. In reality, they
provide great value. Graphics are typically used to better represent a set of
results or patterns and help improve the presentation of a study. Serving as
illustrative visuals they can improve cognitive reasoning and enhance the
scope of how an evaluation has turned out. The concept of data visualization
is a great tool that can help assess business performance. In the area of
business management graphical analysis is essential in presenting crucial
information and in taking appropriate remedial action. Reporting and tracking
the market targets of companies is best managed by creating graphs and
charts to visualize data and comprehend statistics.

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Graphs and Charts:
You may ask how a mere diagram can achieve this goal, but you will be
surprised by how powerful a visual pattern is in understanding financial reports
that mere numbers and figures. Graphs logically represent information along
several dimensions based on how one wishes to show the available statistics.
The primary purpose of graphs is to show relationships among variables and
this may include, in a business world, anything from profit and loss related
information to sales and marketing figures.

In general charts represent one type of information, for example, you may
show the percentage of profits from various states in the country. Graphs on
the other hand show one set of variables represented in a continuous flow
against another variable entity, for instance, the annual sales numbers of the
past 10 years or something similar. The increasing ease with which graphs
can now be created as well as the scope of attractive visuals has created an
impact in the business arena. 4
Graphs and Charts:
The process of effective graphical construction begins with a simple analysis
of the information available. Pattern detection comes in very handy to decide
the right kind of visual that will best represent your data. Graph construction is
an iterative process meaning that there is ample scope for trial and error to
assess what works best. Given the popularity and flexibility of graphics and
the importance of the patterns revealed by using images, graphs are key
decision-making tools for any enterprise.

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Diagram or Graph:
• A diagram or graph is a pictorial means for portraying and summarizing
data. No doubt tabulation is a good method of condensing and
summarizing data but many people has no taste for numbers. They may
prefer a way of representation where figures could be avoided. More over a
pictorial presentation of the data often makes certain features of the data
more apparent them a tabular presentation.

• In the media it is common to represent the data graphically and with the
use of computer graphics it is now further enhanced.

• Diagram refers to various types of devices such as bars, circles, pictorials

etc. Diagrammatic representation is suited to spatial series. The following
are the advantages and limitations of diagrammatic presentations.
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 Advantages Limitations
1. Beautifully and neatly constructed 1. Diagrams show only approximate
diagrams are more attractive, values.
impressive and appealing than simple
figures.
2. Diagrams are understood by almost 2. It is difficult to read multi dimensional
everybody (even layman). diagrams.
3. Diagrams have long lasting impression 3. The construction of diagram is difficult
on the mind of reader. compared to drawing table.
4. Comparison is made easier with 4. It is not possible to analyse the
diagrams. diagram further.
5. Diagram presentations are universally 5. Diagrams can supplement the tabular
used in all the fields to represent the presentation but not an alternative to it.
statistical data.
6. One can draw meaningful inferences 6. It is not possible to have minute
from the diagrams in a short period of readings from the diagram.
time and with little labour.
7. Diagram presentations provide more 7. A wide gap between two figures are
information than data in a table. difficult to put on the diagram
meaningfully.
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Rules for Constructing Diagrams:
• A proper scale must be chosen for the diagram. It must suit the space
available.

• Every diagram must have a suitable heading showing the main facts of the
diagram. Diagram title should be self-illustrated.

• Diagram should be drawn neatly and accurately with the help of drawing
instruments.

• Appropriate diagram according to the demand of the data may be drawn.

The inappropriate diagram may distort the facts and may be misleading.

• When more than one item is drawn in a diagram, an index key must be
given for identifying and understanding the diagram.
• The source of the data presented should be individual at the bottom of the
diagram.
• Never try to over crowed the diagram. Too much information presented in a
diagram may be confusing.
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Types of Diagrams:

Different types of diagrams generally used for representing statistical data are.

• One Dimensional Diagrams – Simple Bar Charts, Multiple Bar Charts, Bar
Charts and Percentage Component

• Two Dimensional Diagrams – Rectangles Squares

• Pie Diagrams – Circles and Sectors

One Dimensional Diagrams

In one dimensional diagrams the quantities are represented only

by one dimension i.e. by the length of the bars and the width of
the bars is not taken into consideration.

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Simple Bar Chart

This is one of the simplest form of presentation of data. It can be drawn either
horizontally or vertically. It is used to represent those data where each item
consists of single component and variations among the items is small. One
bar is drawn for each item. Generally the vertical scale represented the
frequencies / quantities in each category. The length (or the height) of each
bar indicates the frequency / size of the item / category it represents. The
width of the bar is not important however it must be the same for each item /
category. The gap between the bars should be equal-spaced. The bars can be
shaded or coloured if desired.

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Example:
A sample of 50 college students was taken who were planning to go to Punjab
University. Each of the students was asked which of the following masters
program be or she intended to choose: Statistics, Economics, Business,
Information Technology (IT), Arts and other. The responses of these students
are presented in table below. Construct a simple bar chart for this data.

Masters Program f 20

Statistics 6
Frequency
15

Economics 10 10

Business 12 5

IT 15 0
Stat Eco Business IT Arts Others
Arts 3
Masters Programs
Other 4

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Example:
Draw a simple bar diagram to represent the Sales of a Company for 5 years.

Year 1997 1998 1999 2000 2001

Sales (Rupees) 75000 80000 90000 92000 95000

100
Sales (000 Rupees)

80
60
Series1
40
20
0
1997 1998 1999 2000 2001
Year
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Multiple Bar Chart
When two or more sets of data with common characteristic are to be
represented in the same diagram, Multiple bar Diagram is drawn.
Example:
The following frequency table gives the projected sales of paper (1000
tons) in Lahore for the next three years. Draw a multiple bar diagram to
represent the data.

Categories 2022 2023 2024 120

Newspaper 50 75 100 100
80
Books Printing 60 65 75 60
Wrapping 20 15 25 40
20
Special Variations 10 18 15 0
Others 40 45 40 Newspaper Books Wrapping Special Others
Printing Variations
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Component or Sectional Bar Chart
In component bar chart, a bar is drawn to represent the total frequency and
then divide the bar into components or sections whose lengths are
proportional to the frequencies of the categories they represent. This diagram
can also be drawn in the percentage form where one bar represent 100%,
then it is known as percentage component bar chart.
Example: Draw the component bar chart for the following data.

Cities Total Males Females 12

Lahore 7 3.7 3.3 10
Karachi 10 5.5 4.5 8
Rawalpindi 4 2.2 1.8 6
Peshawar 4.5 2.5 2.0 4
Quetta 2.0 1.1 0.9 2
0
Lahore Karachi Rawalpindi Peshawar Quetta
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Pie Chart or Circular Diagrams
Pie chart is generally used for categorical or nominal data. Pie chart
are used to display parts of a total. The pie or a circle is divided into
sectors or pieces, whose area are proportional to the frequencies of
the categories they represent. The sectors are shaded or coloured
differently to show the relationship of pats to be whole. To construct
the Pie chart we must make the angles of sector proportional to the
frequencies. As a circle consists of 360o. The proportion that each
category have is computed by the formula:
Component Part
Angle   360
Total
Then the circle is divided into different sectors by constructing angles
at the center by measure of a protractor. 15
Example:
The following table represent the recipients of charitable growing. Draw a pie
chart to portray the results.
Amount
Recipients
(in million of rupees)
Religion 31.0
Arts and Humanities 4.1
Social Services 6.9
Education 9.0
Health 9.2
Other 4.7

Table below gives the calculations necessary for constructing a Pie chart.

Recipient Amount Percentage Degrees

Religion 31.0 47.8 172.1 (47.8% of 36.o)
Health 9.2 14.2 51.1
Education 9.0  9.0  50.0
13.9  100
 64.9 
Social Services 6.9 10.6 38.2
Arts and Humanities 4.1 6.3 22.7
Other 4.7 7.2 25.9
Total 64.9 100.0 360
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Stem and Leaf Plot
A stem and leaf plot is a method used to organize statistical data. The
greatest common place value of the data is used to form the stem. The next
greatest common place value is used to form the leaves.

EXAMPLE: Make a stem and leaf plot of the algebra test scores given below.

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EXAMPLE: Make a stem and leaf plot of the entry test scores given below.

• What was the lowest score on the history test? 65

• What was the highest score on the history test? 95
• In which interval did most students score? 80 to 89

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HISTOGRAM
A histogram is a bar chart or graph showing the frequency of occurrence of
each value of the variable being analysed. In histogram, data are plotted as a
series of rectangles. Class boundaries are shown on the ‘ X-axis’ and the
frequencies on the ‘Y-axis’. The height of each rectangle represents the
frequency of the class interval. Each rectangle is formed with the other so as
to give a continuous picture.

Example: Draw a histogram for the following data.

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Example: Draw a histogram for the following data.

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Frequency Polygon
If we mark the midpoints of the top horizontal sides of the rectangles in a
histogram and join them by a straight line, the figure so formed is called a
Frequency Polygon. This is done under the assumption that the frequencies
in a class interval are evenly distributed throughout the class. The area of the
polygon is equal to the area of the histogram, because the area left outside is
just equal to the area included in it.
Example: Draw a frequency polygon for the following data.

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