So we have learned how to grow budgets.
In this video we will be learning about the best practices what we should and what we should not be
doing when we are drawing a budget.
Sometimes budgets are avoided because they are common.
This is a mistake and at the bottom should be leveraged.
That is they should be used because they are common as this means less learning curve for your audience.
So instead of using their brain to understand how to read the graph the audience can spend its time
on you figuring out the message that we wanted to convey using that visual.
So budgets are easy to read and we can easily compare the end point of the box so we can quickly see
which category is the biggest which is the smallest and we can also find out the incremental difference
between different categories.
Now take a look at this graph and think about what do you feel about the expiration of the X cards.
Take pentagons to find out what is wrong with this graph.
So on first look probably you'll get worried about the huge increase in tax rate.
The issue with this good offers the bottom number on the vertical axis is not zero.
It is rather 34.
This means that the bars are actually continuing down through the bottom of the page.
In fact the way this is graph the visual increases for 60 percent whereas actually the visual increase
should have been 13 percent.
Here I have compared how it was represented by the news channel and how it should have been shown instead.
So when you look at the graph on the right perhaps you'll think that the tax increase isn't socialism
at least not as rare as originally depicted.
Because the way our eyes compare to the letter and points of the bars it is important to have the context
of the entire advert so that we make the accurate comparison so body graph so depicting the same value
same information but the graph on the left is slightly misleading because it is not starting from zero
and it is making you think that the change is huge whereas it is not as huge as is being perceived by
looking at this graph.
So always remember because how our eyes compare the relative endpoints of debate it is important that
bar charts always have a zero baseline.
You can also note that there are few other differences.
The y axis labels which were originally on the right hand side have been moved to the left since we
read from left to right.
So it is important that we first look at the axis to understand what is the actual value of the data.
Secondly the data labels which were a little outside but have now been brought in.
But this helps reduce clutter in the graph.
Also since we already have these data labels that is I know that 35 percent is the tax rate now and
thirty nine point six will be tax rate.
Later I can make this y axis since it is just redundant information.
So in your professional career if you're growing the graph always start it from a zero baseline but
if you get a graph and you have to look at the graph and take a decision based on the data they always
check the baseline that the other person used.
If your baseline is not do you mean perceiving exaggerated increase or decrease in the data.
And as for the use of axis or the data levels if you want your audience to focus on the big picture
trends either remove the graphical axis or b emphasize it by making it great and using the data label
is always preferable as it clearly highlights the value of each data point.
The way we are discussing lentil bonds let us also spend a moment on the rate of divorce.
There is no hard and fast rule here but in general the bar should be wider than the white space between
the bars.
You don't want the bars to be so wide however that your audience wants to compare areas instead of lends
to consider these three examples.
And this first one these bars are looking too thin.
That is this wide area is too wide as compared to the width of the bar in this one.
The bars are to take and this is just right does hold the weight of bars and rate of light space it
should be in your graph.
Next important consideration is when you have multiple cities in your column order bar chart.
This is a single city is plotted.
These are two cities and these are multiple cities.
The point of using multiple cities is that you should be able to compare the trend in these cities.
Now if you look at this graph it has too many cities for you to compare.
So it is always preferable to limit the number of cities to two or three so that you can look at the
trend of individual cities and compare these multiple leaders he's using too many data cities will make
it cluttered.
Now these are tagged bar charts while drawing these tag bar chart.
I also told you that these are used to compare the contribution of different categories to the total.
Now if you want to see the change in the contribution of a particular category over time or with any
other variable it is easier to compare this first category only since it is on the zero based Lane and
its height can easily be compared to one another.
And you can easily see when it is decreasing and when it is increasing but it becomes really difficult
to compare the categories on top of the first category.
Now if you want to compare these values in these second cities it is difficult because it does not have
a common baseline.
So if you want to see whether this value is equal to this fifth one or it is more than this one or less
then you cannot really see since the baseline is different but would also if you have a lot of parts
in this category it now has three but if it has seven or eight it will become really confusing about
the trend of contribution of each category.
So when you're using a stag bar chart remember to have limited number of categories and to have the
most important category at the bottom for which you want to compare determine if you can do away with
a start target it is preferable that you draw a normal column chart and compare the contribution date.
Then we also learn how to draw the horizontal bar chart.
I told you that we usually prefer horizontal bar charts because first they are easier to read.
And secondly if you have a longer category names you can show those category names without them being
overlapped.
So if you have this same graph in a vertical position and you have longer category names the category
names will be overlapping and it will look cluttered.
You can show the same love in a horizontal fashion and it will be much clearer.
And in terms of series The Rule is same as what vertical chart keep the number of cities to two what
three.
So that it is easier for you to compare the performance of these cities or categories do not overplay
that you are judged by using more than four or five cities under consideration while drawing a horizontal
bar chart is how do you order these categories.
So we have five categories.
Which category should we show as the first category and which category as the last one.
So what should we order of these categories.
We usually prefer the natural ordering of the category.
For example if I have category of age groups such as 0 2 10 years or eleven to 20 years old and so on
the natural order which is the increasing order of age range should be preferred but in case there is
no natural order in your categories for example the name of cities such as New York London Tokyo then
we need to select the order so that the data makes more sense.
And how will the data make more sense.
So probably we should use the largest or the smallest category on the top.
So this is one order in which I have arranged these categories in the decreasing order of their numbers.
So first of all I prefer the natural ordering.
If there is no natural order try to put them into increasing or decreasing order so that user can interpret
it more easily.
So while drawing bar charts or column charts keep these viewpoints in mind so that you can convey your
message more clearly and in a more efficient way.