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Chapter 2: Q137E (page 139)

Question: Misleading graph.Consider the following graphic, similar to one produced by the Silicon Alley Insider, an online publication for business news. The graph attempts to show the increasing trend in annual revenue produced by Craigslist compared to the decrease in newspaper classified ad sales.

a.Why might the graph be misleading? [Hint:Focus on the units of measure on the two verticalaxes.]

b.Redraw the graph, but use the same units of measure for both Craigslist revenue and newspaper ad sales. What conclusions can you draw from the redrawn graph?

Short Answer

Expert verified

Answer

a. The graph is deceptive since it has two vertical axes, with Craigslist showing a rising trend and newspapers showing a falling trend.

b. For the correct graph to, draw the bar diagram.

Step by step solution

01

Given information 

Misleading graphs can be generated purposely to obstruct appropriate data analysis, or they might be created accidentally owing to unfamiliarity with graphing software, information misunderstanding, or data that cannot be effectively represented.

02

(a) Write the information the graph is misleading

The graph is misleading because there are two vertical axes where craigslist shows the increasing trend and newspapers show the decreasing trend. So, this given graph does not correctly show the increasing and decreasing trends. So, the graph is showing is misleading. The graph attempts to show the increasing trend in annual revenue produced by Craigslist compared to the decrease in newspaper classified ad sales. Because the scales on the vertical axis diverge, the graph may be deceptive. The values on the left vertical axis range from 0 to $120 million. The values on the right vertical axis go from 0 to $20 billion.

03

(b) Redrawn the graph to write the correct conclusions 

This bar diagram is appropriate for the comparison. This diagram shows the growing trend of Craigslist income and the declining trend of newspaper advertising revenue. Craigslist is a regionally focused classified ad site with sections for jobs, apartments, classifieds, companies, neighborhoods, events, portfolios, discussion groups, and more. Most Craigslist adverts are free to post, although some are charged based on the location and the kind of classification.

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