Question

An analyst needs to show the number of invoices that fall into each of the following past due categories: 10 days, 20 days, 30 days, and more than 30 days. Which of the following charts would be most appropriate to use for this data based on what you learned in Chapter 9?

a) Pie chart

b) Bar chart

c) Line chart

d) Histogram

Answer 1

A bar chart is most appropriate for showing the number of invoices in each past due category because it effectively displays comparisons among discrete categories and allows for chronological ordering.

Step-by-step explanation:

The most appropriate chart to show the number of invoices that fall into each past due category (10 days, 20 days, 30 days, and more than 30 days) is a bar chart. A bar chart effectively displays comparisons among discrete categories. When using a bar chart, one would ensure that the bars are in chronological order, which would align with the past due categories. It is essential that the chart is clear and legible, with distinguishable colors for each category, and that the numbers and scale are easily readable.

A pie chart could also be used to show the proportion of invoices in each category; however, it may not be as effective if there are many categories or if the categories are not vastly different in size, as this could make the chart difficult to interpret.

Line charts are generally better for showing trends over time and not for categorical distributions. A histogram might be confused with a bar chart, but it's typically used for continuous data, not categorical, and would not be suitable for these discrete past due categories.