Data Interpretation > Data Interpretation

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Data Interpretation is an activity in which one draws conclusion about the data available for analysis. Before attempting to explore data interpretation , let us dwell upon the following facts.

 

What is data ?

Data is a collection of related facts , figures , information etc. Whenever any data is given always understand the unit of data and scale factor etc. used while reporting the data.

 

Representation of Data

Next we consider methods to represent data

 

 

In the method data represented in horizontal rows and vertical column for example let us consider the yearly balance sheet of company ABC.

 

Year	Revenue (Rs Crore)	Operating Cost (Rs Crore)	Profit (Rs crore)	Sales (Rs crore)
2000	1000	200	300	1200
2001	1200	300	325	1500
2002	1100	250	225	1400
2003	1300	300	425	1500

 

In the above table each column represents the value for the corresponding variable across the years.

 

 

Bar charts are most suitable when data is to be presented in a format so that comparison is easier to make , Let us consider the total cash reserve of a company aver the years.

 

 

Pie charts are used generally to show the distribution of whole into sub- components. Let us consider the monthly expression of a family.

Rent – 20%

Food – 15%

Entertainment – 10%

Saving – 25%

Mobile phone bill – 30%

total income – 100%

 

In a pie chart , a circle is divided into sectors, where the angle of the sector is proportional to the value of the sub component . Total expense of 100% is equal to the angel subtended by the circle that is

 

Sector angle for Rent =

Sector angle for Food =

Sector angel for Entertainment =

Sector angle or Saving =

Sector angle for Mobile phone bill =