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Flashcards: Recognize possible associations and trends in data

The revenue of a small company over 10 years is portrayed by the following line graph.

Analyze linge graph 2

Which of the following statements can best be made about the data?

The company had the highest revenue in the year 1994.

The company's revenue increased from 1991 to 1993.

The revenue in the 10 years was generally increasing each year.

The revenue in the 10 years was generally decreasing each year.

The company's revenue generally decreased from 1994 to 1996.

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Flashcards: Recognize possible associations and trends in data

The revenue of a small company over 10 years is portrayed by the following line graph.

Analyze linge graph 2

Which of the following statements can best be made about the data?

The company had the highest revenue in the year 1994.

The company's revenue increased from 1991 to 1993.

The revenue in the 10 years was generally increasing each year.

The revenue in the 10 years was generally decreasing each year.

The company's revenue generally decreased from 1994 to 1996.

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Flashcards: Recognize possible associations and trends in data

Which of the following statements can best be made about the data?

Your answer:

The company had the highest revenue in the year 1994.

Your answer:

The company's revenue increased from 1991 to 1993.

Your answer:

The revenue in the 10 years was generally increasing each year.

Your answer:

The revenue in the 10 years was generally decreasing each year.

Correct answer:

The company's revenue generally decreased from 1994 to 1996.

Explanation:

The question asks you to identify a trend that best fits the data.

Over 10 years, the revenue of the company decreases and increases with no clear overall pattern or trend, so the answers claiming that there is a general increase or decrease are incorrect.

While the revenue was at a high point ($65,000) in the year 1994, it was not the highest point in the 10 years. The highest point was in 1998, with a revenue of $77,000.

While the revenue did increase from 1991 to 1992, it decreased by even more from 1991 to 1993. Therefore, from 1991 to 1993, there was actually a net decrease in revenue, not a net increase.

The correct answer is: "The company's revenue generally decreased from 1994 to 1996." Notice the data points matching the years 1994, 1995, and 1996 are linked by a line that has a downward slope. This indicates a general decrease in revenue.

Flashcards: Recognize possible associations and trends in data

An individual's income over 10 years is represented by the following line chart.

Analyze linge graph 2

Approximate individual's highest annual income from 1994 to 1998.

$210,000

$500

$460,000

$460

$500,000

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Flashcards: Recognize possible associations and trends in data

Approximate individual's highest annual income from 1994 to 1998.

Your answer:

$210,000

Your answer:

$500

Your answer:

$460

Your answer:

$500,000

Correct answer:

$460,000

Explanation:

Notice that the question narrows the time period you are examining to 1994–1998. While there are years with higher incomes than in this time period (namely, 1992 and 1999), we can only consider the years from 1994 to 1998.

The highest point within this period is in the year 1998. Matching this data point with the values on the y-axis (the income values), you will see that this data point lies between $400,000 and $500,000. Looking more closely, you can even say that it is above halfway between the values, so it appears to be greater than $450,000.

Thus, the value that approximates the income in 1998 is $460,000.

Be careful to take into account the units on each axis. The y-axis measures income in thousands of dollars, so the answer is $460,000 and not $460.

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