Appropriate Chart - confusion

Discussion in 'CP2' started by Viki2010, Dec 22, 2018.

  1. Viki2010

    Viki2010 Member

    Hi, what is CP2 requirement for choosing the "appropriate chart"? I lost 2.5 marks for choosing the bar type charts for comparison of the total charge per day for each scenario.
    Was it the line chart that was required instead?
    I thought that a line chart is better if we are comparing trends in data rather than financial progression of cashflows.
    When is the line chart or bar chart appropriate?
    For proportion comparison a pie chart is the best option - this is clear.

    Thank you for your help!
     
  2. Viki2010

    Viki2010 Member

    Hi, I'm looking at paper 2 sample solution charts from May 2015 and am wondering if a line chart would be appropriate here since we are showing the progression of cashflows?
    I'm slightly confused as to why the solution shows the bar chart here. Shouldn't the progression of cashflows use a line chart?
     
    pyuille_1609 likes this.
  3. Viki2010

    Viki2010 Member

    I don't want to be marked down for the wrong choice of chart.
     
  4. Viki2010

    Viki2010 Member

    The only thing I can think of is that the original approach does not start from the same point and hence we are using the stacking approach for the bar chart. The new strategy in theory should use the line chart since the progression of cashflows start from the same point in time. However, since we've chosen the bar chart for original scenario we need to make the new strategy comparable. Is that the logic here?
     
  5. pyuille_1609

    pyuille_1609 Member

    YUP. OH the confusion! In fact, I too would have used a line chart, so I had the same question.

    However, for March 2015 Paper 2 - they used line charts to show progression of the net cash flows. (They used column charts for the comparison of the projected income and outgo, though, which makes sense.)

    I would say stick to the line chart if its one series of results data for each scenario, and use the column charts if its comparison of two sets of results (on the same scenario).

    Does that make sense?
     
  6. Viki2010

    Viki2010 Member

    yes, that makes sense thanx. good luck for tomorrow.
     
  7. Viki2010

    Viki2010 Member

    or would the key word here be "cash-flow"? if we are comparing or showing "cash-flow" - always choose the line graph. if we are comparing other items - choose bar chart? although income and outgo can also be considered as "cash-flow" and this is what's confusing here.
     
  8. pyuille_1609

    pyuille_1609 Member

    thanks! same to you!
    yes, but they go in different directions, so they are not the same 'type' of cash flow, if you catch my drift... also in that instance they only asked for the comparison of income versus outgo, these can only be done within the same scenario, which was the case....
     

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