Questions: A company wants to study sales by customers who are grouped by age (e.g. 10-29, 30-49, etc.). Which of the following graphs would be the best for displaying this data? Histogram Bar chart Pareto chart Pie chart

Solution Steps

To determine the best graph for displaying sales data grouped by age ranges, we need to consider the nature of the data. Since the data is grouped into ranges, a histogram is the most appropriate choice because it effectively shows the distribution of numerical data across different intervals.

The data in question involves sales by customers grouped by age ranges (e.g., 10-29, 30-49, etc.). This type of data is categorical, where each category represents an age range.

We need to choose a graph that effectively displays categorical data. Let's evaluate each option:

1. Histogram: Typically used for continuous data divided into bins. Not suitable for categorical data.
2. Bar chart: Ideal for displaying categorical data, where each bar represents a category (age range) and the height of the bar represents the sales.
3. Pareto chart: A type of bar chart that displays categories in descending order of frequency. It is useful for identifying the most significant factors but not necessary for simple categorical data.
4. Pie chart: Used to show proportions of a whole. It can be used for categorical data but is less effective when there are many categories or when precise comparisons are needed.

Given the nature of the data (sales by age range), a bar chart is the most suitable option. It allows for easy comparison of sales across different age ranges.

Final Answer