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CMA Intermediate · Financial Management and Business Data Analytics · Data Analysis and Modelling

A CFO of an Indian retail chain wants a chart to show how monthly sales of Rs 40 lakh to Rs 90 lakh have moved over the last 24 months and to spot the overall direction. Which chart is most suitable?

A line chart with months on the horizontal axis is most suitable because it displays how a measure changes over time and makes the overall direction and fluctuations easy to see. Pie charts show shares, and scatter plots show relationships between variables.

  1. APie chart of the 24 months
  2. BLine chart with months on the horizontal axisCorrect
  3. CScatter plot of sales against store area
  4. DStacked bar of sales by region for one month

Explanation

A line chart with time on the horizontal axis shows the direction and fluctuation of a variable over a period. A pie chart shows shares of a whole, not trends. A scatter plot shows the relationship between two variables and does not describe movement over time. A single-month stacked bar loses the time dimension.

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