Name: Which is the best chart: Selecting among 14 types of charts Part II
Uploaded: 2020-03-09T01:10:18.000Z
Duration: 8 min 10 s
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In this video we discussed when to use bar, pie, doughnut, line and area charts.

Now we are ready to continue where we left off.

Treemap charts One type of chart that is not used as often

It allows us to split the sum of the whole into hierarchies and then show an internal

When to use Treemap charts The company we have been looking at so far

This is the perfect way to provide information about the weight divisions have with respect

At the same time it shows how much each product contributes to the revenue of its division.

When to avoid Treemap charts As you can imagine it is quite difficult to

apply treemap charts to a context that is not the one we just described.

Treemap charts are not suitable when the data we are working with is not divisible into

Moreover, we can’t use treemap charts if we want to track development over time.

Bridge chart Bridge, also known as waterfall charts, take

Several decades ago top tier “24/7 at your service” consultants at McKinsey popularized

this type of visualization among their clients.

And ever since, the popularity of bridge charts has continued to rise.

Bridge charts are made of bars showing the cumulative effect of a series of positive

and negative values impacting a starting and an ending value.

When to use bridge charts There are two major use cases of bridge charts.

First, we can use this type of visualization whenever we would like to bridge the difference

So, in our example from earlier, the company registered different revenues in 2018 compared

The starting period for this chart is the end of 2017 or 2018.

With a simple bar chart, we would just see an increase of 6 million.

The bridge chart gives us additional information – how different divisions contributed to

In fact, the revenues of two of the divisions increased, while the other one didn’t.

In a similar fashion, a bridge chart can show us how one variable was influenced by a series

Let’s provide an easy to understand example, which is heavily used in finance.

The company’s revenues were equal to 109 million $ in 2018, right?

What if we would like to create a visualization showing how revenues are related to operating

We have the necessary information knowing the intermediary steps in between.

Operating Profit = Revenue – Cost of goods sold – Operating expenses – D&A.

There are three intermediary steps between revenues and operating profit.

A bridge chart allows us to show the impact of each of these steps.

When to avoid bridge charts When we deal with data that does not involve

intermediary steps or segments, we will have to use a different type of chart.

Scatter plots A scatter plot is a type of chart that is

often used in the field of statistics and data science.

It consists of multiple data points plotted across two axes.

Each variable depicted in a scatter plot would have multiple observations.

If a scatter plot includes more than two variables, then we would use different colours to signify

When use scatter plots A scatter plot chart is a great indicator

that allows us to see whether there is a pattern to be found between two variables.

The x-axis contains information about house price, while the y-axis indicates house size.

There is an obvious pattern to be found - a positive relationship between the two.

The bigger a house is, the higher its price.

On the other hand, house size and the age of the person who bought a house are two uncorrelated

variables, and a scatter plot helps us see that easily.

So, this can be a very useful type of chart whenever we would like to see if there is

any relationship between two sets of data.

When to avoid scatter plots We can’t use scatter plots when we don’t

In our example, we need information about both house prices and house size to create

A scatter plot requires at least two dimensions for our data.

In addition, scatter plots are not suitable if we are interested in observing time patterns.

Finally, a scatter plot is used with numerical data, or numbers.

If we have categories such as 3 divisions, 5 products, and so on, a scatter plot would

Histogram charts The last type of chart we will consider here

A series of bins showing us the frequency of observations of a given variable.

The definition of histogram charts is short and easy.

An interviewer asked 267 people how much their house cost.

Then a histogram was used to portray the interviewer’s findings.

Some prices were in the range between $117-217k, many more in the range $217-$317k, and the

rest of the houses were classified in more expensive bins.

When to use histograms Histograms are great when we would like to

show the distribution of the data we are working with.

This allows us to group continuous data into bins and hence, provide a useful representation

When to avoid histograms Be careful when the data you are working with

contains multiple categories or variables.

Multi-column histograms are to be avoided when they look like this.

Conclusion In this video, we were able to provide a great

summary of the different types of charts you will need when working with data.

In addition, you learned something which is even more important:

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Which is the best chart: Selecting among 14 types of charts Part II

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