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Regression Modeling with Actuarial and Financial Applications by Edward W. Frees

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21

Designing Effective Graphs

Chapter Preview. Actuaries, like other business professionals, communicate quantitative ideas graphically. Because the process of reading, or decoding, graphs is more complex than reading text, graphs are vulnerable to abuse. To underscore this vulnerability, we give several examples of commonly encountered graphs that mislead and hide information. To help creators design more effective graphs and to help viewers recognize misleading graphs, this chapter summarizes guidelines for designing graphs that show important numerical information. When designing graphs, creators should

(1) Avoid chartjunk.

(2) Use small multiples ...

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