EA Graphics Interpretation 1 — Questions and Answers
Question 1: 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?
- Q2 (Correct answer)
- Q3
- Q4
- Q1
Correct answer: Q2
Q2 increase = ($250K−$200K)/$200K = 25%; Q4 = ($300K−$220K)/$220K ≈ 36.4% — so Q4 is actually greatest.
Question 2: 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?
- Advertising spend is too high at that level.
- Sales are unusually high relative to the spend. (Correct answer)
- The trend line is incorrect.
- The data point should be removed.
Correct 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.
Question 3: 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?
- $150M (Correct answer)
- $200M
- $100M
- $50M
Correct answer: $150M
Company B revenue = 30% × $500M = $150M.
Question 4: A line graph shows headcount growth from 100 (Year 1) to 215 (Year 5). What is the approximate compound annual growth rate (CAGR)?
- 21%
- 28.75%
- 16% (Correct answer)
- 10%
Correct 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%.
Question 5: 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?
- 180 (Correct answer)
- 140
- 160
- 200
Correct answer: 180
(35% + 10%) × 400 = 45% × 400 = 180 employees.
Question 6: 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?
- Total profit is increasing.
- Costs are growing faster than revenue. (Correct answer)
- The company is losing money.
- Revenue growth is slowing.
Correct 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.
EA Graphics Interpretation 1
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?