Your friend is thinking about buying shares of stock in a company. You have been tracking the closing prices of the stock shares for the past 90 trading days. Which type of graph for the data would be best to show your friend?
What are the alternatives you are given?
A time-series because it shows the changes in the stock shares over the 90 day trading period.
To select the best type of graph to show your friend, you should consider the purpose of the visualization and the nature of the data. In this case, since you have been tracking the closing prices of the stock shares over 90 trading days, the most suitable graph would be a line graph.
A line graph is commonly used to display trends over time, which is precisely what you want to convey to your friend. By plotting the closing prices on the y-axis and the corresponding trading days on the x-axis, a line graph will show how the stock's value has changed over the given period. This visualization will enable your friend to analyze the overall trend of the stock's performance and identify any patterns or changes in its value.
Additionally, line graphs are effective at displaying small fluctuations in the stock's prices, allowing your friend to track the potential volatility of the investment. Moreover, it can help illustrate periods of growth or decline in the stock's value.
By using a line graph to present the closing prices of the stock shares over the past 90 trading days, you can provide your friend with a clear and visually informative representation of the stock's performance, facilitating their decision-making process.