Andrew Creates a Bar Graph to Show the Increase in His

question 106

Essay

Andrew creates a bar graph to show the increase in his company's sales. He wants to show the milestones - years in which sales reached 10 million, 20 million, 30 million, 40 million, and 50 million dollars respectively.
The data are shown in the table below:

$$\begin{array} { c | c } \text { Year } & \text { Sales (millions of dollars) } \\\hline 1975 & 10 \\1985 & 20 \\1993 & 30 \\1999 & 40 \\2003 & 50\end{array}$$
In the graph, Andrew draws 5 equally spaced bars of heights 1 in, 2 in, 3 in, 4 in, and 5 in respectively. The height of each bar corresponds to the amount of sales. He labels each bar with the corresponding year (1975, 1985, 1993, 1999,
2003 respectively). Why is the graph misleading?

---

Definitions:

Trading

The act of buying, selling, or exchanging financial instruments, such as stocks, bonds, or derivatives, typically in financial markets.

Zero Correlation

A statistical term indicating no linear relationship between two variables, meaning one variable does not predict the movement of the other.

Equity Tranche

The portion of a structured finance instrument that is first to absorb losses and last to receive payments.

Default

Failure to fulfill a legal obligation, especially failure to meet a debt payment or not fulfilling a contract condition.