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CA Foundation · Quantitative Aptitude · Statistical Description of Data

Which diagram is the most suitable for showing the changes in a company's total annual turnover over the last ten years, so that the trend over time is easy to see?

A line diagram (historigram) is most suitable because it plots turnover against time, so the rise and fall across the ten years can be read directly. A pie chart shows shares of one total at a single point in time, so it cannot show a trend.

  1. ALine diagram (historigram) plotted against timeCorrect
  2. BPie chart with ten sectors
  3. CSubdivided bar diagram of one year only
  4. DPictogram showing the turnover of a single year

Explanation

A time series such as yearly turnover is best shown by a line diagram, with time on the horizontal axis and values on the vertical axis, because it displays the trend directly. A pie chart shows the shares of a single total at one point in time and cannot show a trend. A single-year diagram gives no time comparison.

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