View source for Misleading graph

{{short description|Graph that misrepresents data}}

[[File:Misusestatistics 0001.png|thumb|upright=1.2|Example of a truncated (left) vs full-scale graph (right), using the same data]]
{{Data Visualization}}
In [[statistics]], a '''misleading graph''', also known as a '''distorted graph''', is a [[chart|graph]] that misrepresents [[data]], constituting a [[misuse of statistics]] and with the result that an incorrect conclusion may be derived from it.

Graphs may be misleading by being excessively complex or poorly constructed. Even when constructed to display the characteristics of their data accurately, graphs can be subject to different interpretations, or unintended kinds of data can seemingly and ultimately erroneously be derived.<ref name="Kirk p52">Kirk, p. 52</ref>

Misleading graphs may be created intentionally to hinder the proper interpretation of data or accidentally due to unfamiliarity with [[list of information graphics software|graphing software]], misinterpretation of data, or because data cannot be accurately conveyed. Misleading graphs are often used in [[false advertising]]. One of the first authors to write about misleading graphs was [[Darrell Huff]], publisher of the 1954 book ''[[How to Lie with Statistics]]''.

The field of [[data visualization]] describes ways to present information that avoids creating misleading graphs.

==Misleading graph methods==
{{Quote |quote = [A misleading graph] is vastly more effective, however, because it contains no adjectives or adverbs to spoil the illusion of objectivity, there's nothing anyone can pin on you.
 |source = ''[[How to Lie with Statistics]]'' (1954)<ref>Huff, p. 63</ref>}}
There are numerous ways in which a misleading graph may be constructed.<ref name="Nolan pp 49–52">Nolan, pp. 49–52</ref>

===Excessive usage===
The use of graphs where they are not needed can lead to unnecessary confusion/interpretation.<ref name="texas audit">{{cite web|title=Methodology Manual: Data Analysis: Displaying Data - Deception with Graphs |url=http://www.sao.state.tx.us/Resources/Manuals/Method/data/12DECEPD.pdf |publisher=Texas State Auditor's Office |date=Jan 4, 1996 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20030402093134/http://www.sao.state.tx.us/Resources/Manuals/Method/data/12DECEPD.pdf |archive-date=2003-04-02 }}</ref> Generally, the more explanation a graph needs, the less the graph itself is needed.<ref name="texas audit"/> Graphs do not always convey information better than tables.<ref name=TufteVDQI/>

===Biased labeling===
The use of biased or [[loaded words]] in the graph's title, axis labels, or caption may inappropriately [[priming (psychology)|prime]] the reader.<ref name="texas audit"/><ref>Keller, p. 84</ref>
====Fabricated trends====
Similarly, attempting to draw trend lines through uncorrelated data may mislead the reader into believing a trend exists where there is none. This can be both the result of intentionally attempting to mislead the reader or due to the phenomenon of [[illusory correlation]].

===Pie chart===
{{main article|Pie chart}}
*Comparing pie charts of different sizes could be misleading as people cannot accurately read the comparative area of circles.<ref name="Whitbread p150">Whitbread, p. 150</ref>
*The usage of thin slices, which are hard to discern, may be difficult to interpret.<ref name="Whitbread p150"/>
*The usage of percentages as labels on a pie chart can be misleading when the sample size is small.<ref>{{citation|title=Introductory Criminal Justice Statistics|first=Irina R.|last=Soderstrom|publisher=Waveland Press|year=2008|isbn= 9781478610342|page=17|url=https://books.google.com/books?id=6XUfAAAAQBAJ&pg=PA17}}.</ref>
*Making a pie chart 3D or adding a slant will make interpretation difficult due to distorted effect of [[perspective (visual)|perspective]].<ref name="Whitbread, p. 151">Whitbread, p. 151</ref> Bar-charted pie graphs in which the height of the slices is varied may confuse the reader.<ref name="Whitbread, p. 151"/>

==== Comparing pie charts ====
Comparing data on barcharts is generally much easier. In the image below, it is very hard to tell where the blue sector is bigger than the green sector on the piecharts.
[[File:Piecharts.svg|center|thumb|484x484px|Three sets of percentages, plotted as both piecharts and barcharts. Comparing the data on barcharts is generally much easier.]]

====3D Pie chart slice perspective====
A ''perspective'' [[pie chart#3-D pie chart|(3D) pie chart]] is used to give the chart a [[three-dimensional space|3D]] look. Often used for aesthetic reasons, the third dimension does not improve the reading of the data; on the contrary, these plots are difficult to interpret because of the distorted effect of [[perspective (visual)|perspective]] associated with the third dimension. The use of superfluous dimensions not used to display the data of interest is discouraged for charts in general, not only for pie charts.<ref name=Few1>{{cite web |last=Few|first=Stephen|title=Save the Pies for Dessert|url=http://www.perceptualedge.com/articles/08-21-07.pdf|work=Visual Business Intelligence Newsletter|publisher=Perceptual Edge|access-date=28 June 2012|date=August 2007}}</ref> In a 3D pie chart, the slices that are closer to the reader appear to be larger than those in the back due to the angle at which they're presented.<ref name="Rumsey p156">Rumsey, p. 156.</ref> This effect makes readers less performant in judging the relative magnitude of each ''slice'' when using 3D than 2D <ref>{{cite journal |last=Siegrist|first=Michael|title=The use or misuse of three-dimensional graphs to represent lower-dimensional data|journal=Behaviour & Information Technology|year=1996|volume=15|issue=2|pages=96–100|doi=10.1080/014492996120300}}</ref>

:{| class="wikitable"
|+ Comparison of pie charts
|-
! Misleading pie chart
! Regular pie chart
|-
| [[File:Misleading Pie Chart.png|325px]]
| [[File:Sample Pie Chart.png|325px]]
|}
Item C appears to be at least as large as Item A in the misleading pie chart, whereas in actuality, it is less than half as large. Item D looks a lot larger than item B, but they are the same size.

[[Edward Tufte]], a prominent American statistician, noted why tables may be preferred to pie charts in ''[[The Visual Display of Quantitative Information]]'':<ref name=TufteVDQI>{{cite book|last=Tufte|first=Edward R.|title=The visual display of quantitative information|year=2006|publisher=Graphics Press|location=Cheshire, Conn.|isbn=9780961392147|edition=4th print, 2nd|page=[https://archive.org/details/visualdisplayofq00tuft/page/178 178]|url=https://archive.org/details/visualdisplayofq00tuft/page/178}}</ref>
<blockquote>
Tables are preferable to graphics for many small data sets. A table is nearly always better than a dumb pie chart; the only thing worse than a pie chart is several of them, for then the viewer is asked to compare quantities located in spatial disarray both within and between pies – Given their low data-density and failure to order numbers along a visual dimension, pie charts should never be used.
</blockquote>
<!-- need to balance criticism-->

===Improper scaling===
Using pictograms in bar graphs should not be scaled uniformly, as this creates a perceptually misleading comparison.<ref name="Weiss p60">Weiss, p. 60.</ref> The area of the pictogram is interpreted instead of only its height or width.<ref name="Utts pp146-147">Utts, pp. 146–147.</ref> This causes the scaling to make the difference appear to be squared.<ref name="Utts pp146-147"/>
:{| class="wikitable"
|+ Improper scaling of 2D pictogram in a bar graph
|-
! Improper scaling
! Regular
! Comparison
|-
| [[File:Improperly scaled picture graph.svg|175px]]
| [[File:Picture Graph.svg|175px]]
| [[File:Comparison of properly and improperly scaled picture graph.svg|175px]]
|}
In the improperly scaled pictogram bar graph, the image for B is actually 9 times as large as A.

:{| class="wikitable"
|+ 2D shape scaling comparison
|-
! Square
! Circle
! Triangle
|-
| [[File:Box scaling.svg|150px]]
| [[File:Circle scaling.svg|150px]]
| [[File:Triangle scaling.svg|150px]]
|}
The perceived size increases when scaling.<!--Improve-->

The effect of improper scaling of pictograms is further exemplified when the pictogram has 3 dimensions, in which case the effect is cubed.<ref name="Hurley">Hurley, pp. 565–566.</ref>

:{| class="wikitable"
| [[File:Graph showing improper 3D pictogram scaling.svg|left|150px]]
|}
The graph of house sales (left) is misleading. It appears that home sales have grown eightfold in 2001 over the previous year, whereas they have actually grown twofold. Besides, the number of sales is not specified. 

An improperly scaled pictogram may also suggest that the item itself has changed in size.<ref>Huff, p. 72.</ref>

:{| class="wikitable"
|+
|-
! Misleading
! Regular
|-
| [[File:Pictograph not aligned and different size.svg|200px]]
| [[File:Pictograph aligned and similar size.svg|200px]]
|}
Assuming the pictures represent equivalent quantities, the misleading graph shows that there are more bananas because the bananas occupy the most area and are furthest to the right.
<!-- need better source: http://www.bbc.co.uk/schools/gcsebitesize/maths/statistics/representingdata2rev5.shtml -->

====Logarithmic scaling====
Logarithmic (or log) scales are a valid means of representing data. But when used without being clearly labeled as log scales or displayed to a reader unfamiliar with them, they can be misleading. Log scales put the data values in terms of a chosen number (the base of the log) to a particular power. The base is often [[E (mathematical constant)|e]] (2.71828...) or 10. For example, log scales may give a height of 1 for a value of 10 in the data and a height of 6 for a value of 1,000,000 (10{{sup|6}}) in the data. Log scales and variants are commonly used, for instance, for the volcanic explosivity index, the Richter scale for earthquakes, the magnitude of stars, and the pH of acidic and alkaline solutions. Even in these cases, the log scale can make the data less apparent to the eye. Often the reason for the use of log scales is that the graph's author wishes to display vastly different scales on the same axis. Without log scales, comparing quantities such as 1000 (10{{sup|3}}) versus 10{{sup|9}} (1,000,000,000) becomes visually impractical. A graph with a log scale that was not clearly labeled as such, or a graph with a log scale presented to a viewer who did not know logarithmic scales, would generally result in a representation that made data values look of similar size, in fact, being of widely differing magnitudes. Misuse of a log scale can make vastly different values (such as 10 and 10,000) appear close together (on a base-10 log scale, they would be only 1 and 4). Or it can make small values appear to be negative due to how logarithmic scales represent numbers smaller than the base.

Misuse of log scales may also cause relationships between quantities to appear linear whilst those relationships are exponentials or power laws that rise very rapidly towards higher values. It has been stated, although mainly in a humorous way, that "anything looks linear on a log-log plot with thick marker pen" <!--This quote is one of "akin's laws of spacecraft design." It is stated in several ways. Some people might want to alter this statement into one of those alternative wordings. They all mean the same and highlight the same relevant point.-->.<ref>{{Cite web|title=Akin's Laws of Spacecraft Design|url=https://spacecraft.ssl.umd.edu/old_site/academics/akins_laws.html|access-date=2021-03-14|website=spacecraft.ssl.umd.edu}}</ref>

:{| class="wikitable"
|+ Comparison of linear and logarithmic scales for identical data
|-
! Linear scale
! Logarithmic scale
|-
| [[File:Linear scale.png|350px]]
| [[File:Logarithmic scale (2).png|350px]]
|}
Both graphs show an identical exponential function of ''f(x'') = 2<sup>''x''</sup>. The graph on the left uses a linear scale, showing clearly an exponential trend. The graph on the right, however uses a logarithmic scale, which generates a straight line. If the graph viewer were not aware of this, the graph would appear to show a linear trend.

===Truncated graph===
A '''truncated graph''' (also known as a '''torn graph''') has a ''y'' axis that does not start at 0. These graphs can create the impression of important change where there is relatively little change.

While truncated graphs can be used to overdraw differences or to save space, their use is often discouraged. Commercial software such as MS Excel will tend to truncate graphs by default if the values are all within a narrow range, as in this example. To show relative differences in values over time, an index chart can be used. Truncated diagrams will always distort the underlying numbers visually. Several studies found that even if people were correctly informed that the y-axis was truncated, they still overestimated the actual differences, often substantially.<ref>{{cite journal |last1=Hanel |first1=Paul H.P. |last2=Maio |first2=Gregory R. |last3=Manstead |first3=Antony S. R. |title=A New Way to Look at the Data: Similarities Between Groups of People Are Large and Important |journal=Journal of Personality and Social Psychology |volume=116 |issue=4 |pages=541–562 |date=2019 |doi=10.1037/pspi0000154|pmid=30596430 |pmc=6428189 }}</ref>

:{| class="wikitable"
|+ Truncated bar graph
|-
! Truncated bar graph
! Regular bar graph
|-
| [[File:Truncated Bar Graph.svg|350px]]
| [[File:Bar graph.svg|350px]]
|}

These graphs display ''identical data''; however, in the truncated bar graph on the left, the data ''appear'' to show significant differences, whereas, in the regular bar graph on the right, these differences are hardly visible.


There are several ways to indicate ''y''-axis breaks:
:{| class="wikitable"
|+ Indicating a ''y''-axis break
|-
| [[File:Bar graph break.svg|125px]]
| [[File:Y-axis break.svg|175px]]
|}

===Axis changes===

:{| class="wikitable"
|+ Changing ''y''-axis maximum
! Original graph
! Smaller maximum
! Larger maximum
|-
| [[File:Line graph1.svg|200px]]
| [[File:Line graph3.svg|200px]]
| [[File:Line graph2.svg|200px]]
|}
Changing the ''y''-axis maximum affects how the graph appears. A higher maximum will cause the graph to appear to have less volatility, less growth, and a less steep line than a lower maximum.

:{| class="wikitable"
|+ Changing ratio of graph dimensions
! Original graph
! Half-width, twice the height
! Twice width, half-height
|-
| [[File:Line graph1.svg|200px]]
| [[File:Line graph1-3.svg|175px]]
| [[File:Line graph1-4.svg|200px]]
|}
Changing the ratio of a graph's dimensions will affect how the graph appears.

===No scale===
The scales of a graph are often used to exaggerate or minimize differences.<ref name="Smith2012">{{cite book |last=Smith|first=Karl J.|title=Mathematics: Its Power and Utility|url=https://books.google.com/books?id=OLGgjtvKDvwC&pg=PA472|access-date=24 July 2012|date=1 January 2012|publisher=Cengage Learning|isbn=978-1-111-57742-1|page=472}}</ref><ref name="MooreNotz2005">{{cite book |last1=Moore|first1=David S.|last2=Notz|first2=William|title=Statistics: Concepts And Controversies|url=https://books.google.com/books?id=irBeIsO8wZgC&pg=PA187|access-date=24 July 2012|date=9 November 2005|publisher=Macmillan|isbn=978-0-7167-8636-8|pages=189–190}}</ref>
:{| class="wikitable"
|+ Misleading bar graph with no scale
|-
! Less difference
! More difference
|-
| [[File:Example truncated bar graph.svg|left|120px]]
| [[File:Bar graph missing zero1.svg|left|120px]]
|}
The lack of a starting value for the ''y'' axis makes it unclear whether the graph is truncated. Additionally, the lack of tick marks prevents the reader from determining whether the graph bars are properly scaled. Without a scale, the visual difference between the bars can be easily manipulated.

:{| class="wikitable"
|+ Misleading line graph with no scale
|-
! Volatility
! Steady, fast growth
! Slow growth
|-
| [[File:No scale line graph1.svg|125px]]
| [[File:No scale line graph2.svg|125px]]
| [[File:No scale line graph3.svg|125px]]
|}
Though all three graphs share the same data, and hence the actual [[slope]] of the (''x'', ''y'') data is the same, the way that the data is plotted can change the visual appearance of the angle made by the line on the graph. This is because each plot has a different scale on its vertical axis. Because the scale is not shown, these graphs can be misleading.

===Improper intervals or units===
The intervals and units used in a graph may be manipulated to create or mitigate change expression.<ref name="Rumsey p156"/>

<!--==Improper extrapolation or interpolation==-->
===Omitting data===
Graphs created with omitted data remove information from which to base a conclusion.
:{| class="wikitable"
|+ Scatter plot with missing categories
|-
! Scatter plot with missing categories
! Regular scatter plot
|-
| [[File:Scatter Plot with missing categories.svg|350px]]
| [[File:A scatter plot without missing categories.svg|350px]]
|}
In the scatter plot with missing categories on the left, the growth appears to be more linear with less variation.

In financial reports, negative returns or data that do not correlate with a positive outlook may be excluded to create a more favorable visual impression.{{cn|date=December 2020}}

===3D===
The use of a superfluous third dimension, which does not contain information, is strongly discouraged, as it may confuse the reader.<ref name="Whitbread, p. 151"/>
<gallery widths="200">
File:3D confusing in bar graph.svg|alt=The third dimension may confuse readers|The third dimension may confuse readers.<ref name="Whitbread, p. 151"/>
File:3D bar graph.svg|The blue column in the front appears larger than the green column in the back due to perspective, despite having the same value.
File:Cube scaling comparison.svg|When scaling in three dimensions, the effect of the change is cubed.
</gallery>

===Complexity===
Graphs are designed to allow easier interpretation of statistical data. However, graphs with excessive complexity can obfuscate the data and make interpretation difficult.

===Poor construction===
Poorly constructed graphs can make data difficult to discern and thus interpret.

===Extrapolation===
{{Main|Extrapolation}}
Misleading graphs may be used in turn to [[extrapolate]] misleading trends.<ref>{{cite news |last1=Smith |first1=Charles Hugh |title=Extrapolating Trends Is Exciting But Misleading |url=https://www.businessinsider.com/beware-of-extrapolating-trends-2011-3 |access-date=23 September 2018 |work=[[Business Insider]] |date=29 Mar 2011}}</ref>

==Measuring distortion==
Several methods have been developed to determine whether graphs are distorted and to quantify this distortion.<ref name=gdi1>{{cite news |last=Mather|first=Dineli R.|author2=Mather, Paul R. |author3=Ramsay, Alan L. |title=Is the Graph Discrepancy Index (GDI) a Robust Measure?|date=July 2003|doi=10.2139/ssrn.556833}}</ref><ref name=Mather>{{cite journal |last=Mather|first=Dineli|author2=Mather, Paul |author3=Ramsay, Alan |title=An investigation into the measurement of graph distortion in financial reports|journal=Accounting and Business Research|date=1 June 2005|volume=35|issue=2|pages=147–160|doi=10.1080/00014788.2005.9729670|s2cid=154136880}}</ref>
<!--Graph inconsistency coefficient-->

===Lie factor===
:<math>\text{Lie factor}=\frac{\text{size of effect shown in graphic}}{\text{size of effect shown in data}},</math>
where
:<math>\text{size of effect}=\left| \frac{\text{second value} - \text{first value}}{\text{first value}} \right|.</math>

A graph with a high lie factor (>1) would exaggerate change in the data it represents, while one with a small lie factor (>0, <1) would obscure change in the data.<ref name=Craven1/> A perfectly accurate graph would exhibit a lie factor of 1.

===Graph discrepancy index===
:<math>\text{graph discrepancy index}=100 \left(\frac{a}{b} - 1\right),</math>
where
:<math>a=\text{percentage change depicted in graph},</math>
:<math>b=\text{percentage change in data}.</math>
The '''graph discrepancy index''', also known as the '''graph distortion index''' ('''GDI'''), was originally proposed by Paul John Steinbart in 1998. GDI is calculated as a percentage ranging from −100% to positive infinity, with zero percent indicating that the graph has been properly constructed and anything outside the ±5% margin is considered to be distorted.<ref name=gdi1/> Research into the usage of GDI as a measure of graphics distortion has found it to be inconsistent and discontinuous, making the usage of GDI as a measurement for comparisons difficult.<ref name=gdi1/>

===Data-ink ratio===
{{See also|Chartjunk}}
:<math>\text{data-ink ratio}=\frac{\text{“ink” used to display the data}}{\text{total “ink” used to display the graphic}}</math>

The data-ink ratio should be relatively high. Otherwise, the chart may have unnecessary graphics.<ref name=Craven1/>

===Data density===
:<math>\text{data density}=\frac{\text{number of entries in data matrix}}{\text{area of data graphic}}</math>

The data density should be relatively high, otherwise a table may be better suited for displaying the data.<ref name=Craven1>{{cite web|last=Craven|first=Tim|title=LIS 504 - Graphic displays of data|url=http://publish.uwo.ca/~craven/504/504gra.htm|work=Faculty of Information and Media Studies|publisher=University of Western Ontario|access-date=9 July 2012|location=London, Ontario|date=November 6, 2000|archive-date=24 June 2011|archive-url=https://web.archive.org/web/20110624071907/http://publish.uwo.ca/~craven/504/504gra.htm|url-status=dead}}</ref>

==Usage in finance and corporate reports==
Graphs are useful in the summary and interpretation of financial data.<ref name="Fulkerson">{{cite journal |last=Fulkerson|first=Cheryl Linthicum|author2=Marshall K. Pitman |author3=Cynthia Frownfelter-Lohrke |title= Preparing financial graphics: principles to make your presentations more effective|journal=The CPA Journal|date=June 1999|url=http://archives.cpajournal.com/1999/0699/features/f28699.html|volume=69|issue=6|pages=28–33}}</ref> Graphs allow trends in large data sets to be seen while also allowing the data to be interpreted by non-specialists.<ref name="Fulkerson"/><ref name="McNelis">{{cite journal|last=McNelis|first=L. Kevin|title=Graphs, An Underused Information Presentation Technique.|journal=The National Public Accountant|date=June 1, 2000|url=https://www.questia.com/read/1G1-63609717|volume=45|issue=4|pages=28–30}}{{Dead link|date=December 2023 |bot=InternetArchiveBot |fix-attempted=yes }}{{subscription required}}</ref>

Graphs are often used in corporate [[annual report]]s as a form of [[impression management]].<ref name=BeattieJones1999>{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=Financial graphs: True and Fair?|journal=Australian CPA|volume=69|issue=5|pages=42–44|date=June 1, 1999}}</ref> In the United States, graphs do not have to be audited, as they fall under [http://pcaobus.org/Standards/Auditing/Pages/AU550.aspx AU Section 550 Other Information in Documents Containing Audited Financial Statements].<ref name=BeattieJones1999/>

Several published studies have looked at the usage of graphs in corporate reports for different corporations in different countries and have found frequent usage of improper design, selectivity, and measurement distortion within these reports.<ref name=BeattieJones1999/><ref name=BeattieJones1992>{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=The Use and Abuse of Graphs in Annual Reports: Theoretical Framework and Empirical Study|journal=Accounting and Business Research|date=1 September 1992|volume=22|issue=88|pages=291–303|doi=10.1080/00014788.1992.9729446|url=http://eprints.gla.ac.uk/796/1/Beattieaccbusres1992.pdf}}</ref><ref name=Penrose>{{cite journal |last=Penrose|first=J. M.|title=Annual Report Graphic Use: A Review of the Literature|journal=Journal of Business Communication|date=1 April 2008|volume=45|issue=2|pages=158–180|doi=10.1177/0021943607313990|s2cid=141123410}}</ref><ref name=Frownfelter-Lohrke>{{cite journal |last=Frownfelter-Lohrke|first=Cynthia|author2=Fulkerson, C. L.|title=The Incidence and Quality of Graphics in Annual Reports: An International Comparison|journal=Journal of Business Communication|date=1 July 2001|volume=38|issue=3|pages=337–357|doi=10.1177/002194360103800308|s2cid=167454827}}</ref><ref name=Isa>{{cite journal|last1=Mohd Isa|first1=Rosiatimah|title=The incidence and faithful representation of graphical information in corporate annual report: a study of Malaysian companies|url=http://malrep.uum.edu.my/rep/Record/uitm.ir.3284|journal=Technical Report|publisher=Institute of Research, Development and Commercialization, Universiti Teknologi MARA|year=2006|url-status=dead|archive-url=https://web.archive.org/web/20160815090929/http://malrep.uum.edu.my/rep/Record/uitm.ir.3284|archive-date=2016-08-15}} Also published as: {{cite journal |last1=Mohd Isa|first1=Rosiatimah|title=Graphical Information in Corporate Annual Report: A Survey of Users and Preparers Perceptions|journal=Journal of Financial Reporting and Accounting|volume=4|issue=1|year=2006|pages=39–59|doi=10.1108/19852510680001583}}</ref><ref name=BeattieJones1997>{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=A Comparative Study of the Use of Financial Graphs in the Corporate Annual Reports of Major U.S. and U.K. Companies|journal=Journal of International Financial Management and Accounting|date=1 March 1997|volume=8|issue=1|pages=33–68|doi=10.1111/1467-646X.00016|url=http://eprints.gla.ac.uk/788/1/Jo_Int_FinManAcc_8%281%2933-68.pdf}}</ref><ref name=BeattieJones2008>{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=Corporate reporting using graphs: a review and synthesis|journal=Journal of Accounting Literature|year=2008|volume=27|pages=71–110|url=http://eprints.gla.ac.uk/5954/|issn=0737-4607}}</ref> The presence of misleading graphs in annual reports has led to requests for standards to be set.<ref name=Christensen>{{cite journal |last=Christensen|first=David S.|author2=Albert Larkin|title=Criteria For High Integrity Graphics|journal=Journal of Managerial Issues|date=Spring 1992|volume=4|issue=1|pages=130–153|publisher=[[Pittsburg State University]]|jstor=40603924}}</ref><ref name=Eakin1>{{cite journal|last=Eakin|first=Cynthia Firey|author2=Timothy Louwers|author3=Stephen Wheeler|title=The Role of the Auditor in Managing Public Disclosures: Potentially Misleading Information in Documents Containing Audited Financial Statements|journal=Journal of Forensic & Investigative Accounting|issn=2165-3755|year=2009|volume=1|issue=2|url=http://www.bus.lsu.edu/accounting/faculty/lcrumbley/jfia/Articles/FullText/2009v1n2a5.pdf|access-date=2012-07-09|archive-date=2021-02-24|archive-url=https://web.archive.org/web/20210224205121/http://www.bus.lsu.edu/accounting/faculty/lcrumbley/jfia/Articles/FullText/2009v1n2a5.pdf|url-status=dead}}</ref><ref name=Steinbart1>{{cite journal |last=Steinbart|first=P.|title=The Auditor's Responsibility for the Accuracy of Graphs in Annual Reports: Some Evidence for the Need for Additional Guidance|journal=Accounting Horizons|date=September 1989|pages=60–70}}</ref>

Research has found that while readers with poor levels of financial understanding have a greater chance of being misinformed by misleading graphs,<ref name=BeattieJones2002>{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=Measurement distortion of graphs in corporate reports: an experimental study|journal=Accounting, Auditing & Accountability Journal|year= 2002|volume=15|issue=4|pages=546–564|doi=10.1108/09513570210440595|url=http://eprints.gla.ac.uk/772/1/Acc_AudAcc_Jo_15%284%29546-564.pdf}}</ref> even those with financial understanding, such as loan officers, may be misled.<ref name=Christensen/>

==Academia==
The perception of graphs is studied in [[psychophysics]], [[cognitive psychology]], and [[computational vision]]s.<ref name=Frees>{{cite journal|last=Frees |first=Edward W |author2=Robert B Miller |title=Designing Effective Graphs |journal=North American Actuarial Journal |date=Jan 1998 |volume=2 |issue=2 |pages=53–76 |url=http://www.soa.org/library/journals/north-american-actuarial-journal/1998/april/naaj9804_3.pdf |doi=10.1080/10920277.1998.10595699 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20120216175256/http://www.soa.org/library/journals/north-american-actuarial-journal/1998/april/naaj9804_3.pdf |archive-date=2012-02-16 }}</ref>

==See also==
*[[Chartjunk]]
*[[Impression management]]
*[[Misuse of statistics]]
*[[Simpson's paradox]]
*''[[How to Lie with Statistics]]''

==References==
{{reflist|30em}}

===Books===
{{refbegin|60em}}

*{{cite book |last=Huff |first=Darrell |others= pictures by Irving Geis|title=How to lie with statistics|year=1954|publisher=Norton|location=New York|isbn=0393052648|edition=1st}}
*{{cite book |last=Hurley|first=Patrick J.|title=A Concise Introduction to Logic|url=https://archive.org/details/conciseintroduct00hurl|url-access=registration|year=2000|publisher=Wadsworth Publishing|isbn=9780534520069}}
*{{cite book |last=Keller|first=Gerald|year=2011|title=Statistics for Management and Economics|publisher=South-Western|location=Mason, OH|isbn=978-1111527327 |edition=abbreviated, 9th}}
*{{cite book |last=Kirk|first=Roger E.|title=Statistics: An Introduction|url=https://books.google.com/books?id=W4t9Nfgk03AC&pg=PA52|access-date=28 June 2012|year=2007|publisher=Cengage Learning|isbn=978-0-534-56478-0}}
*{{cite book |last1=Nolan|first1=Susan|last2=Heinzen|first2=Thomas|title=Statistics for the Behavioral Sciences|url=https://books.google.com/books?id=9EFyK79F76EC&pg=PA49|access-date=28 June 2012|year=2011|publisher=Macmillan|isbn=978-1-4292-3265-4}}
*{{cite book |last=Rumsey|first=Deborah|author-link= Deborah J. Rumsey |title=Statistics Essentials For Dummies|url=https://books.google.com/books?id=QBmsVY0p7YkC&pg=PA155|access-date=28 June 2012|year=2010|publisher=John Wiley & Sons|isbn=978-0-470-61839-4}}
*{{cite book |last=Weiss|first=Neil A.|title=Elementary statistics|url=https://books.google.com/books?id=ro4XAQAAMAAJ|access-date=28 June 2012|year=1993|publisher=Addison-Wesley|isbn=978-0-201-56640-6}}
*{{cite book|last=Tufte|first=Edward|title=Visual Explanations: Images and Quantities, Evidence and Narrative|year=1997|publisher=Graphics Press|location=Cheshire, CT|isbn=978-0961392123|url=https://archive.org/details/visualexplanatio00tuft}}
*{{cite book |last=Utts|first=Jessica M.|title=Seeing through statistics|year=2005|publisher=Thomson, Brooks/Cole|location=Belmont|isbn=9780534394028|edition=3rd}}
*{{cite book |last=Wainer|first=Howard|title=Visual Revelations: Graphical Tales of Fate and Deception From Napoleon Bonaparte To Ross Perot|url=https://books.google.com/books?id=NcEb3dxbnrsC&pg=PA52|access-date=19 July 2012|year=2000|publisher=Psychology Press|isbn=978-0-8058-3878-7}}
*{{cite book |last=Whitbread|first=David|title=The design manual|year=2001|publisher=University of New South Wales Press|location=Sydney|isbn=0868406589|edition=2nd}}
{{refend}}

==Further reading==
{{refbegin|60em}}
*[https://web.archive.org/web/20100627145759/http://wserver.scc.losrios.edu/~harbism/discussion.pdf A discussion of misleading graphs], Mark Harbison, [[Sacramento City College]]
*{{cite book |last=Robbins|first=Naomi B.|author-link= Naomi B. Robbins |title=Creating more effective graphs|year=2005|publisher=Wiley-Interscience|location=Hoboken, N.J.|isbn=9780471698180}}
*{{cite journal |last=Durbin CG|first=Jr|title=Effective use of tables and figures in abstracts, presentations, and papers.|journal=Respiratory Care|date=October 2004|volume=49|issue=10|pages=1233–7|pmid=15447809}}
*{{cite journal |last=Goundar|first=Nadesa|title=Impression Management in Financial Reports Surrounding CEO Turnover|url=https://unitec.researchbank.ac.nz/bitstream/handle/10652/1250/fulltext.pdf|journal=Masters Dissertation|publisher=Unitec Institute of Technology|access-date=9 July 2012|year=2009|hdl=10652/1250}}
*{{cite book |last1=Huff|first1=Darrell|last2=Geis|first2=Irving|title=How to Lie With Statistics|url=https://books.google.com/books?id=5oSU5PepogEC|access-date=28 June 2012|date=17 October 1993|publisher=W. W. Norton & Company|isbn=978-0-393-31072-6}}
*{{cite book |last=Bracey|first=Gerald|title=Understanding and using education statistics: it's easier than you think.|year=2003|publisher=Educational Research Service|isbn=9781931762267|chapter=Seeing Through Graphs}}
*{{cite web|last=Harvey |first=J. Motulsky |title=The Use and Abuse of Logarithmic Axes |url=http://graphpad.com/faq/file/1487logaxes.pdf |publisher=GraphPad Software Inc. |date=June 2009 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20101123050530/http://graphpad.com/faq/file/1487logaxes.pdf |archive-date=2010-11-23 }}
*{{cite journal |last=Chandar|first=N.|author2=Collier, D. |author3=Miranti, P. |title=Graph standardization and management accounting at AT&T during the 1920s|journal=Accounting History|date=15 February 2012|volume=17|issue=1|pages=35–62|doi=10.1177/1032373211424889|s2cid=155069927}}
*{{cite journal |last=Mather|first=Paul|author2=Ramsay, Alan |author3=Steen, Adam |title=The use and representational faithfulness of graphs in Australian IPO prospectuses|journal=Accounting, Auditing & Accountability Journal|date=1 January 2000|volume=13|issue=1|pages=65–83|doi=10.1108/09513570010316144|url=http://arrow.monash.edu.au/vital/access/services/Download/monash:2109/DOC|archive-url=https://web.archive.org/web/20120709004020/http://arrow.monash.edu.au/vital/access/services/Download/monash:2109/DOC|archive-date=2012-07-09}}
*{{cite book |last1=Beattie|first1=Vivien|last2= Jones |first2=Michael John|title=Financial graphs in corporate annual reports: a review of practice in six countries|year=1996|publisher=Institute of Chartered Accounants in England and Wales|location=London|isbn=9781853557071}}
*{{cite web |last=Galliat|first=Tobias|title=Visualisierung von Informationsräumen|url=http://www.fbi.fh-koeln.de/institut/personen/galliat/Material/ss05/Visualisierung_von_Informationsraeumen_V2_2005.pdf|publisher=Fachhochschule Köln, University of Applied Sciences Cologne|access-date=9 July 2012|archive-url=https://web.archive.org/web/20060104023712/http://www.fbi.fh-koeln.de/institut/personen/galliat/Material/ss05/Visualisierung_von_Informationsraeumen_V2_2005.pdf|archive-date=2006-01-04|date=Summer 2005}}
*{{cite web |last=Carvalho|first=Clark R.|title=Graphic Representation in Managerial Decision Making: The Effect of Scale Break on the Dependent Axis |url=http://apps.dtic.mil/dtic/tr/fulltext/u2/a258989.pdf |archive-url=https://web.archive.org/web/20190423003434/http://www.dtic.mil/dtic/tr/fulltext/u2/a258989.pdf |url-status=live |archive-date=April 23, 2019 |publisher=AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH|author2=McMillan, Michael D.|date=September 1992}}
*{{cite journal |last=Johnson|first=R. Rice|author2=Roemmich, R.|title=Pictures that Lie: The Abuse of Graphs in Annual Reports|journal=Management Accounting|date=October 1980|pages=50–56}}
*{{cite journal |last=Davis|first=Alan J.|title=Bad graphs, good lessons|journal=ACM SIGGRAPH Computer Graphics|date=1 August 1999|volume=33|issue=3|pages=35–38|doi=10.1145/330572.330586|s2cid=31491676|url=http://siggraph.org/publications/newsletter/v33n3/contributions/davis.html|archive-url=https://web.archive.org/web/20000305154852/http://siggraph.org/publications/newsletter/v33n3/contributions/davis.html|archive-date=2000-03-05}}
*{{cite journal |last=Louwers|first=T.|author2=Radtke, R |author3=Pitman, M. |title=Please Pass the Salt: A Look at Creative Reporting in Annual Reports|journal=Today's CPA|date=May–June 1999|pages=20–23}}
*{{cite journal |last1=Beattie|first1=Vivien| last2= Jones |first2=Michael John|title=A six-country comparison of the use of graphs in annual reports|journal=The International Journal of Accounting|date=May 2001|volume=36|issue=2|pages=195–222|doi=10.1016/S0020-7063(01)00094-2}}
*{{cite journal |last=Wainer|first=Howard|title=How to Display Data Badly|journal=The American Statistician|year=1984|volume=38|issue=2|pages=137–147|doi=10.1080/00031305.1984.10483186}}
*{{cite journal |last=Lane|first=David M.|author2=Sándor, Anikó|title=Designing better graphs by including distributional information and integrating words, numbers, and images.|journal=Psychological Methods|date=1 January 2009|volume=14|issue=3|pages=239–257|doi=10.1037/a0016620|pmid=19719360|url=http://www.ruf.rice.edu/~lane/papers/designing_better_graphs.pdf}}
*{{cite journal |last=Campbell|first=Mary Pat|title=Spreadsheet Issues: Pitfalls, Best Practices, and Practical Tips|journal=Actuarial Practice Forum|date=Feb 2010|url=https://www.soa.org/library/journals/actuarial-practice-forum/2010/february/apf-2010-02-campbell.aspx|archive-url=https://web.archive.org/web/20190423003434/https://www.soa.org/library/journals/actuarial-practice-forum/2010/february/apf-2010-02-campbell.aspx|archive-date=2019-04-23}}
*{{cite journal |last=Arocha|first=Carlos|title=Words or Graphs?|journal=The Stepping Stone|date=May 2011|url=https://www.soa.org/library/newsletters/stepping-stone/2011/may/stp-2011-iss42-arocha.aspx|archive-url=https://web.archive.org/web/20190423003433/https://www.soa.org/library/newsletters/stepping-stone/2011/may/stp-2011-iss42-arocha.aspx|archive-date=2019-04-23}}
*{{cite journal |last=Raschke|first=Robyn L.|author2=Steinbart, Paul John|title=Mitigating the Effects of Misleading Graphs on Decisions by Educating Users about the Principles of Graph Design|journal=Journal of Information Systems|date=1 September 2008|volume=22|issue=2|pages=23–52|doi=10.2308/jis.2008.22.2.23}}
{{refend}}

==External links==
*[https://web.archive.org/web/20181103200952/http://www.datavis.ca/gallery/index.php Gallery of Data Visualization The Best and Worst of Statistical Graphics], [[York University]]

{{Misuse of statistics}}
{{Visualization}}

[[Category:Misuse of statistics]]
[[Category:Ethics and statistics]]