Which type of chart is best for showing the trend of sales over a year?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A line chart is the best option for showing the trend of sales over a year because it effectively illustrates data points over a continuous period. This type of chart connects individual data points with a line, making it easy to see patterns, fluctuations, and trends over time. When analyzing sales data, a line chart allows viewers to track changes and understand the trajectory of sales performance incrementally through each month or week, providing a clear visualization of growth, decline, or seasonality.

In contrast, a bar chart can display the same data, but it is less effective for illustrating trends over time because it conveys individual data points as separate bars. This separation can obscure the understanding of how sales figures are changing continuously. A pie chart is designed for depicting proportions of a whole at a single point in time rather than trends over a duration, making it unsuitable for showing changes across months or quarters. Similarly, a histogram is used for depicting the distribution of numerical data and is not intended for time series analysis; it focuses on frequency rather than changes across time. Therefore, for tracking and analyzing trends in sales over a year, a line chart is the most suitable visualization tool.

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