Construct a Pie Chart Representing the Given Data Set

question 115

Essay

Construct a pie chart representing the given data set.
-A parcel delivery service lowered its prices and finds that it has delivered twice as many parcels this year as it
did last year. To illustrate this fact, the manager draws a graph as shown below. Each cube depicts a parcel. The
side length of the "parcel" on the right is twice the side length of the "parcel" on the left. Why is this graph
misleading? What visual impression is created by the graph?

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Definitions:

Stock Market Irrationality

The phenomenon of stock prices being influenced by emotional, psychological, or unrelated economic factors, contradicting efficient market theory.

Speculative Bubbles

A situation in financial markets where the price of assets rises significantly over its fundamental value, driven by exuberant market behavior.

Rational Pricing

A financial theory stating that asset prices will reflect all available information and respond rationally to changing conditions.

Risk Averse

The preference for certainty over uncertainty, with individuals or entities avoiding risks when making decisions.