Which of the Following Guidelines Increases the Effectiveness of a Bar

question 22

Multiple Choice

Which of the following guidelines increases the effectiveness of a bar chart?

• A)Bars should be about half the width of the space in between bars.
• B)Legend should only be used if the chart has two or more data series.
• C)The baseline for bar charts should always be ten.
• D)3-D bar charts should be used to represent complicated numerical information.
• E)Use lighter colors to represent your most important data series.

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows over a period of time.

Rate of Return

The percentage of profit or loss on an investment over a specified period.

Required Rate

Often used in reference to the minimum acceptable return on investment or the minimum discount rate used in net present value calculations.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.