Understanding business performance
Graphs, charts and tables
Graphs and charts turn numerical (quantitative) data into a picture so patterns, comparisons and trends are easier to spot. A table keeps similar data in rows and columns, which is better when you need to read exact individual values.
Matching the chart to the job
| Type | Best for | What to check |
|---|---|---|
| Bar chart | Comparing values across categories, such as repairs completed at each workshop | Axis labels and scale |
| Pie chart | Showing how one whole total splits into parts, often as proportions or percentages | The key, and that the segments add up to the whole |
| Line graph | Showing how a value changes, usually over time, and revealing trends | Which line is which data series |
| Table | Reading and comparing exact individual values, like monthly revenue | Column headings and units |
Check these before reading a value
Always check the title (what the data is about), the labels on each axis or segment, the key or legend (which colour or symbol means which data series), the scale (what each step on an axis is worth) and the units (pounds, units sold, percentages).
Worked example: a pie chart shows 400 bike repairs split between three workshops. The key shows the blue segment is Harbourside, at 25%. So Harbourside completed 0.25 × 400 = 100 repairs. Without the key, you could credit the 100 repairs to the wrong workshop.
Comparing performance and avoiding poor conclusions
Charts help you find the highest, lowest or most common category and compare performance, such as which workshop repaired the most bikes in June. But they can be misread: choosing the wrong data series, reading a scale step as 1 when it is 10, or mixing pounds with thousands of pounds gives a false picture. That can lead to a poor conclusion, like assuming one workshop is far busier when you have read last year's line instead of this year's.
Practise this
Edexcel GCSE Business · 2.4.2 Understanding business performance