Business Analytics

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Data Visualization
Chapter 3

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Introduction
• Data visualization involves:
• Creating a summary table for the data.
• Generating charts to help interpret, analyze, and learn from the data.
• Uses of data visualization:
• Helpful for identifying data errors.
• Reduces the size of your data set by highlighting important
relationships and trends in the data.

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Overview of Data Visualization
Effective Design Techniques

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Overview of Data Visualization (Slide 1 of 5)
Effective Design Techniques:
• Data-ink ratio: Measures the proportion of what Tufte terms “data-ink”
to the total amount of ink used in a table or chart.
• Edward R. Tufte first described the data-ink ratio.
• Helpful for creating effective tables and charts for data visualization:
• Data-ink: Ink used in a table or chart that is necessary to convey the
meaning of the data to the audience.
• Non-data-ink: Ink used in a table or chart that serves no useful purpose in
conveying the data to the audience.

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Overview of Data Visualization (Slide 2 of 5)
Table 3.1: Example of Day Sales Day Sales
a Low Data-Ink Ratio 1 150 11 170
Table 2 170 12 160
Scarf Sales 3 140 13 290
4 150 14 200
5 180 15 210
6 180 16 110
7 210 17 90
8 230 18 140
9 140 19 150
10 200 20 230

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Overview of Data Visualization (Slide 3 of 5)
Figure 3.3: Example of a Low Data-Ink Ratio Chart

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Overview of Data Visualization (Slide 4 of 5)
Table 3.2: Increasing the Data-Ink Ratio by Removing Unnecessary
Gridlines
Day Sales Day Sales
Scarf Sales 1 150 11 170
2 170 12 160
3 140 13 290
4 150 14 200
5 180 15 210
6 180 16 110
7 210 17 90
8 230 18 140
9 140 19 150
10 200 20 230

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Overview of Data Visualization (Slide 5 of 5)
Figure 3.4: Increasing the Data-Ink Ratio by Adding Labels to Axes and
Removing Unnecessary Lines and Labels

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Tables
Table Design Principles
Crosstabulation
PivotTables in Excel
Recommended PivotTables in Excel

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Tables (1 of 18)
Tables should be used when:
1. The reader needs to refer to specific numerical values.
2. The reader needs to make precise comparisons between different values
and not just relative comparisons.
3. The values being displayed have different units or very different
magnitudes.

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Tables (2 of 18)
Table 3.3: Table Showing Exact Values for Costs and Revenues by Month
for Gossamer Industries

Month
1 2 3 4 5 6 Total
Costs ($) 48,123 56,458 64,125 52,158 54,718 50,985 326,567
Revenues ($) 64,124 66,128 67,125 48,178 51,785 55,687 353,027

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Tables (3 of 18)
Figure 3.5: Line Chart of Monthly Costs and Revenues at Gossamer
Industries

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Tables (4 of 18)
Figure 3.6: Combined Line
Chart and Table for Monthly
Costs and Revenues at
Gossamer Industries

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Tables (5 of 18)
Table 3.4: Table Displaying Head Count, Costs, and Revenues at
Gossamer Industries
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Total
Head Count 8 9 10 9 9 9
Costs ($) 48,123 56,458 64,125 52,158 54,718 50,985 326,567
Revenues ($) 64,124 66,128 67,125 48,178 51,785 55,687 353,027

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Tables (6 of 18)
Table Design Principles:
• Avoid using vertical lines in a table unless they are necessary for clarity.
• Horizontal lines are generally necessary only for separating column titles
from data values or when indicating that a calculation has taken place.

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Tables (7 of 18)
Figure 3.7: Comparing Different Table Designs

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Tables (8 of 18)
Table 3.5: Larger Table Showing Revenues by Location for 12 Months of Data
Revenues by Location ($) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Temple 8,987 8,595 8,958 6,718 8,066 8,574
Killeen 8,212 9,143 8,714 6,869 8,150 8,891
Waco 11,603 12,063 11,173 9,622 8,912 9,553
Belton 7,671 7,617 7,896 6,899 7,877 6,621
Granger 7,642 7,744 7,836 5,833 6,002 6,728
Harker Heights 5,257 5,326 4,998 4,304 4,106 4,980
Gatesville 5,316 5,245 5,056 3,317 3,852 4,026
Lampasas 5,266 5,129 5,022 3,022 3,088 4,289
Academy 4,170 5,266 7,472 1,594 1,732 2,025
Total 64,124 66,128 67,125 48,178 51,785 55,687
Costs ($) 48,123 56,458 64,125 52,158 54,718 50,985

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Tables (9 of 18)
Table 3.5 (cont.)
Revenues by
Location ($) Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Temple 8,701 9,490 9,610 9,262 9,875 11,058 107,895
Killeen 8,766 9,193 9,603 10,374 10,456 10,982 109,353
Waco 11,943 12,947 12,925 14,050 14,300 13,877 142,967
Belton 7,765 7,720 7,824 7,938 7,943 7,047 90,819
Granger 7,848 7,717 7,646 7,620 7,728 8,013 88,357
Harker Heights 5,084 5,061 5,186 5,179 4,955 5,326 59,763
Gatesville 5,135 5,132 5,052 5,271 5,304 5,154 57,859
Lampasas 5,110 5,073 4,978 5,343 4,984 5,315 56,620
Academy 8,772 1,956 3,304 3,090 3,579 2,487 45,446
Total 69,125 64,288 66,128 68,128 69,125 69,258 759,079
Costs ($) 57,898 62,050 65,215 61,819 67,828 69,558 710,935

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Tables (10 of 18)
• Crosstabulation: A useful type of table for describing data of two
variables.
• PivotTable: A crosstabulation in Microsoft Excel.

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Tables (11 of 18)
Table 3.6: Quality Rating and Meal Price for 300 Los Angeles
Restaurants
Restaurant Quality Rating Meal Price ($) Wait Time (min)
1 Good 18 5
2 Very Good 22 6
3 Good 28 1
4 Excellent 38 74
5 Very Good 33 6
6 Good 28 5
7 Very Good 19 11
8 Very Good 11 9
9 Very Good 23 13
10 Good 13 1

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Tables (12 of 18)
Table 3.7: Crosstabulation of Quality Rating and Meal Price for 300 Los
Angeles Restaurants
Meal Price
Quality Rating $10–19 $20–29 $30–39 $40–49 Total
Good 42 40 2 0 84
Very Good 34 64 46 6 150
Excellent 2 14 28 22 66
Total 78 118 76 28 300

• The greatest number of restaurants in the sample (64) have a very good rating and a meal price in
the $20–29 range.
• Only two restaurants have an excellent rating and a meal price in the $10–19 range.
• The right and bottom margins of the crosstabulation give the frequencies of quality rating and
meal price separately.

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Tables (13 of 18)
Figure 3.8: Excel Worksheet
Containing Restaurant Data

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Tables (14 of 18)
Figure 3.9: Initial
PivotTable Field List
and PivotTable Field
Report for the
Restaurant Data

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Tables (15 of 18)
Figure 3.10:
Completed PivotTable
Field List and a
Portion of the
PivotTable Report for
the Restaurant Data
(Columns H:AK Are
Hidden)

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Tables (16 of 18)
Figure 3.11: Final
PivotTable Report for
the Restaurant Data

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Tables (17 of 18)
Figure 3.12:
Percent Frequency
Distribution as a
PivotTable for the
Restaurant Data

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Tables (18 of 18)
Figure 3.13: PivotTable Report for the Restaurant Data with Average
Wait Times Added

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Charts
Scatter Charts
Recommended Charts in Excel Bubble Charts
Line Charts Heat Maps
Bar Charts and Column Charts Additional Charts for Multiple Variables
A Note on Pie Charts and PivotCharts in Excel
Three-Dimensional Charts

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Charts (1 of 26)
• Charts (or graphs): Visual methods of displaying data.
• Scatter chart: Graphical presentation of the relationship between
two quantitative variables.
• Trendline: A line that provides an approximation of the relationship
between the variables.
• Line chart: A line connects the points in the chart.
• Useful for time series data collected over a period of time (minutes,
hours, days, years, etc.).

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Charts (2 of 26)
Table 3.8: Sample Data for the San Francisco Electronics Store
No. of Commercials Sales ($100s)
Week x y
1 2 50
2 5 57
3 1 41
4 3 54
5 4 54
6 1 38
7 5 63
8 3 48
9 4 59
10 2 46

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Charts (3 of 26)
Figure 3.17: Scatter
Chart for the San
Francisco
Electronics Store

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Charts (4 of 26)
Month Sales ($100s)
Table 3.9: Monthly Sales Jan 135
Data of Air Compressors Feb 145
at Kirkland Industries Mar 175
Apr 180
May 160
Jun 135
Jul 210
Aug 175
Sep 160
Oct 120
Nov 115
Dec 120

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Charts (5 of 26)
Figure 3.19: Scatter Chart and Line Chart for Monthly Sales Data at
Kirkland Industries

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Charts (6 of 26)
Table 3.10: Regional Sales Data by Month for Air Compressors at
Kirkland Industries Month Sales ($100s) North Sales ($100s) South
Jan 95 40
Feb 100 45
Mar 120 55
Apr 115 65
May 100 60
Jun 85 50
Jul 135 75
Aug 110 65
Sep 100 60
Oct 50 70
Nov 40 75
Dec 40 80

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Charts (7 of 26)
Figure 3.21: Line
Chart of Regional
Sales Data at
Kirkland Industries

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Charts (8 of 26)
Sparkline: Special type of line chart:
• Minimalist type of line chart that can be placed directly into a cell in
Excel.
• Contains no axes; they display only the line for the data.
• Takes up very little space and can be effectively used to provide
information on overall trends for time series data.

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Charts (9 of 26)
Figure 3.22:
Sparklines for the
Regional Sales
Data at Kirkland
Industries

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Charts (10 of 26)
• Bar Charts: Use horizontal bars to display the magnitude of the
quantitative variable.
• Column Charts: Use vertical bars to display the magnitude of the
quantitative variable.
• Bar and column charts are very helpful in making comparisons
between categorical variables.

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Charts (11 of 26)
Figure 3.23: Bar Charts for
Accounts Managed Data
Gentry manages the greatest
number of accounts and
Williams the fewest.

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Charts (12 of 26)
Figure 3.24: Sorted
Bar Chart for
Accounts Managed
Data

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Charts (13 of 26)
Figure 3.25: Bar
Chart with Data
Labels for Accounts
Managed Data

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Charts (14 of 26)
• Pie chart: Common form of chart used to compare categorical data.
• Bubble chart: Graphical means of visualizing three variables in a
two-dimensional graph that sometimes is a preferred alternative to
a 3-D graph.
• Heat map: A two-dimensional graphical representation of data that
uses different shades of color to indicate magnitude.

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Charts (15 of 26)
Figure 3.26: Pie Chart of
Accounts Managed

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Charts (16 of 26)
Table 3.11: Sample Data on Billionaires per Country

Billionaires per 10M Per Capita No. of

Country Residents Income Billionaires
United States 54.7 $54,600 1,764
China 1.5 $12,880 213
Germany 12.5 $45,888 103
India 0.7 $ 5,855 90
Russia 6.2 $24,850 88
Mexico 1.2 $17,881 15

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Charts (17 of 26)
Figure 3.27: Bubble Chart
Comparing Billionaires by
Country

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Charts (18 of 26)
Figure 3.28: Heat
Map and
Sparklines for
Same-Store Sales
Data

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Charts (19 of 26)
Additional Charts for Multiple Variables:
• Stacked-column chart: Allows the reader to compare the relative values
of quantitative variables for the same category in a bar chart.
• Clustered-column (or bar) chart: An alternative chart to stacked-column
chart for comparing quantitative variables.
• Scatter-chart matrix: Useful chart for displaying multiple variables.

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Charts (20 of 26)
Figure 3.29: Stacked-Column Chart for Regional Sales Data for Kirkland Industries

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Charts (21 of 26)
Figure 3.30: Comparing
Stacked-, Clustered-,
and Multiple-Column
Charts for the Regional
Sales Data for Kirkland
Industries

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Charts (22 of 26)
Table 3.12: Data for New York City Sub-boroughs
Percentage
Median Monthly College
Area Rent ($) Graduates (%) Poverty Rate (%) Travel Time (min)
Astoria 1,106 36.8 15.9 35.4
Bay Ridge 1,082 34.3 15.6 41.9
Bayside/Little Neck 1,243 41.3 7.6 40.6
Bedford Stuyvesant 822 21.0 34.2 40.5
Bensonhurst 876 17.7 14.4 44.0
Borough Park 980 26.0 27.6 35.3

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Charts (23 of 26)
Table 3.12: Data for New York City Sub-boroughs (cont.)
Percentage
Median Monthly College
Area Rent ($) Graduates (%) Poverty Rate (%) Travel Time (min)
Brooklyn Heights/Fort Greene 1,086 55.3 17.4 34.5
Brownsville/Ocean Hill 714 11.6 36.0 40.3
Bushwick 945 13.3 33.5 35.5
Central Harlem 665 30.6 27.1 25.0
Chelsea/Clinton/Midtown 1,624 66.1 12.7 43.7
Coney Island 786 27.2 20.0 46.3

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Charts (24 of 26)
Figure 3.31: Scatter-Chart
Matrix for New York City Rent
Data

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Charts (25 of 26)
PivotCharts in Excel:
PivotChart: To summarize and analyze data with both a crosstabulation
and charting, Excel pairs PivotCharts with PivotTables.

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Charts (26 of 26)
Figure 3.32: PivotTable
and PivotChart for the
Restaurant Data

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Advanced Data Visualization
Advanced Charts
Geographic Information Systems Charts

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Advanced Data Visualization (1 of 7)
Advanced Charts:
• Parallel-coordinates plot: Chart for examining data with more than two
variables:
• Includes a different vertical axis for each variable.
• Each observation is represented by drawing a line on the parallel-
coordinates plot connecting each vertical axis.
• The height of the line on each vertical axis represents the value taken by
that observation for the variable corresponding to the vertical axis.
• Treemap: Useful for visualizing hierarchical data along multiple
dimensions.

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Advanced Data Visualization (2 of 7)
Figure 3.33: Parallel-
Coordinates Plot for
Baseball Data

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Advanced Data Visualization (3 of 7)
Figure 3.34:
SmartMoney’s
Map of the Market
as an Example of a
Treemap

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Advanced Data Visualization (4 of 7)
Figure 3.35: Treemap Created in Excel for Top 100 Global Companies
Data

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Advanced Data Visualization (5 of 7)
Geographic Information Systems Charts:
• Geographic information system (GIS): A system that merges maps and
statistics to present data collected over different geographic areas.
• Helps in interpreting data and observing patterns.

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Advanced Data Visualization (6 of 7)
Figure 3.36: GIS Chart
for Cincinnati Zoo
Member Data

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Advanced Data Visualization (7 of 7)
Figure 3.38:
Completed 3D
Map Created in
Excel for World
GDP Data

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Data Dashboards
Principles of Effective Data Dashboards
Applications of Data Dashboards

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Data Dashboards (1 of 3)
• Data dashboard: Data-visualization tool that illustrates multiple
metrics and automatically updates these metrics as new data
become available.
Principles of Effective Data Dashboards:
• Key performance indicators (KPIs) in dashboards:
• Automobile dashboard: Current speed, Fuel level, and oil pressure.
• Business dashboard: Financial position, inventory on hand, customer
service metrics.

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Data Dashboards (2 of 3)
Principles of Effective Data Dashboards (continued):
• Should provide timely summary information on KPIs that are important to the
user.
• Should present all KPIs as a single screen that a user can quickly scan to
understand the business’s current state of operations.
• The KPIs displayed in the data dashboard should convey meaning to its user and
be related to the decisions the user makes.
• A data dashboard should call attention to unusual measures that may require
attention.
• Color should be used to call attention to specific values to differentiate
categorical variables, but the use of color should be restrained.

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Data Dashboards (3 of 3)
Figure 3.39: Data Dashboard for
the Grogan Oil Information
Technology Call Center

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End of Chapter 3

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