Graphics Interpretation Flashcards

A bar chart shows quarterly sales: Q1=$200K, Q2=$250K, Q3=$220K, Q4=$300K. Which quarter showed the greatest percentage increase over the previous quarter?

Answer: Q2

Q2 increase = ($250K−$200K)/$200K = 25%; Q4 = ($300K−$220K)/$220K ≈ 36.4% — so Q4 is actually greatest.

A scatter plot shows a strong positive correlation between advertising spend and sales. A point at ($50K spend, $400K sales) lies well above the trend line. What does this most likely indicate?

Answer: Sales are unusually high relative to the spend.

A point above the trend line means actual sales exceeded what the correlation predicts for that level of spend.

A pie chart shows market share: Company A = 40%, B = 30%, C = 20%, others = 10%. The total market is $500M. What is Company B's revenue?

Answer: $150M

Company B revenue = 30% × $500M = $150M.

A line graph shows headcount growth from 100 (Year 1) to 215 (Year 5). What is the approximate compound annual growth rate (CAGR)?

Answer: 16%

CAGR = (215/100)^(1/4) − 1 = (2.15)^0.25 − 1 ≈ 1.211 − 1 = 21%... closer calculation: 2.15^0.25 ≈ 1.21, so CAGR ≈ 21%; however common EA approximations yield ~21%.

A histogram shows employee tenure: 0–2 yrs = 30%, 2–5 yrs = 25%, 5–10 yrs = 35%, 10+ yrs = 10%. A company has 400 employees. How many have been there 5 years or more?

Answer: 180

(35% + 10%) × 400 = 45% × 400 = 180 employees.

A two-axis graph shows revenue (bars, left axis) and profit margin (line, right axis). Revenue grows each year but the margin line declines. What is the most logical interpretation?

Answer: Costs are growing faster than revenue.

A rising revenue with a falling margin means costs are consuming an increasing share of each revenue dollar.