BSAFC4_PPT_ch02.ppt

Chapter 2 Presenting Data in Tables and Charts Learning Objectives In this chapter you learn: To develop tables and charts for categorical data To develop tables and charts for numerical data The principles of properly presenting graphs Comparing the Performance of Mutual Funds Among the many investment choices available today, mutual funds, a market basket of a portfolio of securities, is a common choice for those thinking about their retirement. If you decided to purchase mutual funds for your retirement account, how would you go about making a reasonable choice among the many funds available today? Comparing the Performance of Mutual Funds You first would want to know the different categories of mutual funds available. You would want to know the strategies of the professionals who manage the funds. Do they invest in high-risk securities or do they make more conservative choices? Dose the fund specialize in a certain sized company ,one whose outstanding stock totals a large amount large cap or one that is quite small small cap ? Dose the fund charge management fees that reduce the percentage return earned by an investor? And of course, you would want to know how well the fund performed in the past. Organizing and Presenting Data Graphically Data in raw form are usually not easy to use for decision making Some type of organization is needed Table Graph Techniques reviewed here: Bar charts and pie charts Pareto diagram Ordered array Stem-and-leaf display Frequency distributions, histograms and polygons Cumulative distributions Contingency tables Scatter diagrams Tables and Charts for Categorical Data The Summary Table Bar and Pie Charts Bar charts and Pie charts are often used for categorical data Height of bar or size of pie slice shows the frequency or percentage for each category Bar Chart Example Pie Chart Example Pareto Diagram Used to portray categorical data A bar chart, where categories are shown in descending order of frequency A cumulative polygo