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CMA Intermediate · Financial Management and Business Data Analytics · Data Presentation: Visualisation and Graphical Presentation

An analyst plots Sensex monthly closing values for 24 months. The y-axis begins at 70,000 instead of zero, which makes a rise from 72,000 to 74,000 look like a very steep climb. Which visualisation principle is violated?

The principle violated is that axis truncation exaggerates differences and misleads viewers. Starting the y-axis at 70,000 makes a rise of only about 2.8 percent look steep. Honest charts keep scales that represent proportions fairly, especially for bar charts.

  1. AThe axis truncation exaggerates differences, misleading the viewerCorrect
  2. BToo many colours are used in the chart
  3. CThe chart lacks a legend for the single series
  4. DData labels are placed outside the plotting area

Explanation

Starting the axis at 70,000 makes a change of about 2.8% (2,000/72,000) look dramatic. Truncated axes distort proportions, particularly in bar charts, and so mislead. The other options describe issues not present in the scenario.

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