Which type of variable is best represented using a pie chart?

A pie chart is most effective for displaying categorical variables because it visually represents the relative sizes of different categories in a whole. Categorical variables consist of distinct groups or categories that do not have a numerical value associated with them. The sections of the pie chart illustrate the proportion of each category in relation to the total, making it easy to compare different segments.

For instance, if you wanted to display the market share of different companies within a specific industry, a pie chart would allow viewers to quickly grasp which companies hold larger or smaller shares compared to one another.

While nominal variables, a subset of categorical variables with no inherent order (like types of fruits or colors), are commonly used in pie charts, the broader category of categorical variables encompasses both nominal and ordinal variables. Thus, the pie chart is appropriately suited for any categorical data analysis where the focus is on the distribution among various categories, reinforcing the reasoning behind selecting this type of variable for representation in a pie chart.