Thursday, 1 July 2010

What are the advantages and limitations of using graphs and charts in business?

Graphs and
charts provide major benefits. First, they can quickly provide information related to trends and
comparisons by allowing for a global view of the data. It also allows members of the audience
who may be less versed in numerical analysis to follow the information and understand the
presentation more fully.

Secondly, graphs and charts provide a visual version
of data, which can be helpful for visual learners.

However, these benefits
are balanced by disadvantages. The major disadvantage of using charts and graphs is that these
aids may oversimplify data, which can provide a misleading view of the data. Attempting to
correct this can make charts overly complex, which can make their value in aiding a presentation
less useful. Finally, it is important to use the correct chart and/or graph when presenting
information, though this can be difficult to identify for ambiguous data.

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