5. Choosing a Data Display
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Are the labels of the axis appropriately labeled?
See solution.
We will begin by looking at the line graph from which the manager concludes that the company is experiencing a decline.
We are asked to find what is missing in the graph and explain why the manager may be mistaken. Note that the vertical axis is not labeled, which means we do not know what it represents. It could be the expenses on repairing faulty products, which means that company is not in decline. Please note that this is only one of the many possible interpretations.