Answer to Question #297929 in Accounting for Jen

Question

Download historical daily stock price data for a few stocks from the Internet. Write down a purpose statement for creating a visualization to analyze this data. Then, create a good and a bad example of a viz addressing the purpose. The good viz should use the appropriate chart type; the poor viz should use an incorrect chart type. Describe why the different types are good or bad examples of achieving the visualization purpose.

Answer 1

the main purpose for using visualization to analyze this data is that it enhances a better understanding of the data by allowing the human mind to internalize and comprehend the trend thereby communicating information better. For example, if we were to extrapolate to a more complex data set of the stock price, the data will seem to be hard and difficult to understand as opposed to when using the visualization. The bad example is that when the data presented in the visualization is incorrect or inaccurate, or the use of the incorrect charts poses a challenge. When different types of visualization charts are used to present the same information it may be confusing to the consumers as different visualization charts are used in the presentation of the various types of data.