Misleading graph. Consider the following graphic, produced

Chapter , Problem 135E

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QUESTION:

Problem 135E

Misleading graph. Consider the following graphic, produced by the Silicon Alley Insider, an online publication for business news. The graph is attempting to show the increasing trend in annual revenue produced by Craigslist as compared to the decrease in newspaper classified ad sales.

a. Why might the graph be misleading? [Hint: Focus on the units of measure on the two vertical axes.]

b. Redraw the graph, but use the same units of measure for both Craigslist revenue and newspaper ad sales. What conclusions can you draw from the redrawn graph?

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QUESTION:

Problem 135E

Misleading graph. Consider the following graphic, produced by the Silicon Alley Insider, an online publication for business news. The graph is attempting to show the increasing trend in annual revenue produced by Craigslist as compared to the decrease in newspaper classified ad sales.

a. Why might the graph be misleading? [Hint: Focus on the units of measure on the two vertical axes.]

b. Redraw the graph, but use the same units of measure for both Craigslist revenue and newspaper ad sales. What conclusions can you draw from the redrawn graph?

ANSWER:

Solution:

Step 1 of 2:

  Consider the given graphic, produced by the Silicon Alley Insider, an online publication for business news.    

           

a). The given graph might be misleading because the scales on the vertical axes are different. The left vertical axis range from 0 to $120 million. The right vertical axis range from 0 to $20 billion.


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