Presentation of Data — Economics STD 11 Commerce — Question

A fundamental rule while constructing graphs is that Y-axis should originate from zero. If the lowest value to be plotted on Y-axis is relatively high, and the consecutive values differ by small value, then presenting such a data poses a problem. This is because if a small scale is taken on the Y-axis, then this would unnecessarily enlarge the presentation and would result in poor visual communication. On the other hand, if a large scale is taken, then the presentation will be cluttered. Therefore, a false base line is drawn over and above the origin, representing the lowest value of the data, and then subsequent values differ by a suitable scale. Preparing a false base line is desirable under the given conditions.

1. When the lowest value of the series is relatively high.
2. When subsequent values differ by a small value.