COMPONENT 2
DATA ANALYSIS
Data is information (facts and figures) that have been collated in a way that allows
them to be used to inform decision making.
A pie chart is a circular chart that is split into sectors to show
percentages or the relative value of different categories of data.
+ provide a good visual - alone do not give very detailed
representation of the relative information
shares of a whole part -make the - not very effective for showing
different categories of data increases or decreases of
easier to compare than if the proportions over time as trends
same data was presented in a are not shown and data cannot
table. be extrapolated
+ help businesses to make - they don’t show causal
decisions
+ give an overall picture of the
relationships like the impact of
advertising spend on sales
PIE
information being presented revenue, meaning that
additional information would be
CHAR
needed (perhaps in narrative
form) to support data presented TS
in pie charts.
Data is grouped into categories using rectangular bars, with the
height of the bar representing the frequency for the category.
These bars can be presented vertically or horizontally. One axis
will show the categories being compared and the other axis will
show the frequency.
+ allows data to be presented - data can be manipulated to
in a clear format where key show false results and
values can be highlighted very patterns.
quickly - can oversimplify data and
+ useful to summarise a large further explanations may be
amount of data in a visual
format
needed to give an accurate
analysis of the data
BAR
+ often used to show key
financial data CHAR
TS
, COMPONENT 2
Histograms show quantitative data, and the data in a histogram is
continuous so there are no gaps between the bars which represent
the different intervals. The area of each bar is proportional to the
frequency for each interval. Both the x-axis and y-axis have a scale.
+ helps depict large - cannot be used for exact
differences in shape or values as the data is grouped
symmetry of the data into intervals
collected - the effectiveness of data
+ useful when displaying data decreases when the range of
which has chronological
categories or numerical
data is too wide – if groups are
large then the data could be HISTOGR
AMS
groupings less meaningful
+ shows the shape of the
distribution for a large set of
data
Line graphs are used to compare two variables. The x-axis
represents a continuous variable (e.g. time) and the y-axis
represents the second variable (e.g. quantity or value). A line graph
is plotted as a series of points and then joined to produce a
continuous line. The line graph shows the relationship between the
two variables.
+ show business performance - a wide range of data is
and used to analyse market challenging to plot
trends - Plotting too many lines
+ clearly show error values in over the graph makes it
the data cluttered and confusing to
+ More than one line may be read
plotted on the same axis as a - only ideal for
form of comparison representing data that have
numerical values
LINE
GRAPH
S
, COMPONENT 2
An index number is an economic data figure reflecting price
or quantity compared with a base value. They show
percentage changes compared with a base number.
+ they’re a useful method of - They may be useful for
showing changes over time one purpose but not for
in data another
+ allows data to be
standardised over time so
- They are simply rough
indications of the relative
INDEX
that the data is easily
comparable
changes
NUMBE
+ help to interpret, analyse
and compare large numbers RS
DATA ANALYSIS
Data is information (facts and figures) that have been collated in a way that allows
them to be used to inform decision making.
A pie chart is a circular chart that is split into sectors to show
percentages or the relative value of different categories of data.
+ provide a good visual - alone do not give very detailed
representation of the relative information
shares of a whole part -make the - not very effective for showing
different categories of data increases or decreases of
easier to compare than if the proportions over time as trends
same data was presented in a are not shown and data cannot
table. be extrapolated
+ help businesses to make - they don’t show causal
decisions
+ give an overall picture of the
relationships like the impact of
advertising spend on sales
PIE
information being presented revenue, meaning that
additional information would be
CHAR
needed (perhaps in narrative
form) to support data presented TS
in pie charts.
Data is grouped into categories using rectangular bars, with the
height of the bar representing the frequency for the category.
These bars can be presented vertically or horizontally. One axis
will show the categories being compared and the other axis will
show the frequency.
+ allows data to be presented - data can be manipulated to
in a clear format where key show false results and
values can be highlighted very patterns.
quickly - can oversimplify data and
+ useful to summarise a large further explanations may be
amount of data in a visual
format
needed to give an accurate
analysis of the data
BAR
+ often used to show key
financial data CHAR
TS
, COMPONENT 2
Histograms show quantitative data, and the data in a histogram is
continuous so there are no gaps between the bars which represent
the different intervals. The area of each bar is proportional to the
frequency for each interval. Both the x-axis and y-axis have a scale.
+ helps depict large - cannot be used for exact
differences in shape or values as the data is grouped
symmetry of the data into intervals
collected - the effectiveness of data
+ useful when displaying data decreases when the range of
which has chronological
categories or numerical
data is too wide – if groups are
large then the data could be HISTOGR
AMS
groupings less meaningful
+ shows the shape of the
distribution for a large set of
data
Line graphs are used to compare two variables. The x-axis
represents a continuous variable (e.g. time) and the y-axis
represents the second variable (e.g. quantity or value). A line graph
is plotted as a series of points and then joined to produce a
continuous line. The line graph shows the relationship between the
two variables.
+ show business performance - a wide range of data is
and used to analyse market challenging to plot
trends - Plotting too many lines
+ clearly show error values in over the graph makes it
the data cluttered and confusing to
+ More than one line may be read
plotted on the same axis as a - only ideal for
form of comparison representing data that have
numerical values
LINE
GRAPH
S
, COMPONENT 2
An index number is an economic data figure reflecting price
or quantity compared with a base value. They show
percentage changes compared with a base number.
+ they’re a useful method of - They may be useful for
showing changes over time one purpose but not for
in data another
+ allows data to be
standardised over time so
- They are simply rough
indications of the relative
INDEX
that the data is easily
comparable
changes
NUMBE
+ help to interpret, analyse
and compare large numbers RS
