Line Chart
A line chart is a type of chart that provides a visual representation of data in the form of points that are connected in a straight line. A line chart is one of the simplest methods to understand any financial data and trading data. Let us discuss more a line chart, the types, advantages and disadvantages, and solve a few examples as well.
| 1. | What is a Line Chart? |
| 2. | Parts of a Line Chart |
| 3. | Types of Line Chart |
| 4. | Advantages and Disadvantages of Line Chart |
| 5. | Creating a Line Chart |
| 6. | FAQs on Line Chart |
What is a Line Chart?
A line chart is a form of graphical representation of data in the form of points that are joined continuously with the help of a line. The line can either be straight or curved depending on the data being researched. Line charts are the simplest form of representing quantitative data between two variables that are shown with the help of a line that can either be straight or curved. Traders, investors, and financial officers use the line chart to depict the high and low in the market for a particular value since it provides a clear visualization of the data.
A line chart consists of a horizontal line i.e. x-axis and a vertical line i.e. y-axis to represent the data. The x-axis shows the time period whereas the y-axis shows the item that is being measured. A line chart clearly shows the increasing or decreasing trend of a particular item. In the line chart above, we can see the dark points, those are the data points that show the quantity or a number that matches a particular time in the x-axis. For example, in the month of March, around 40 houses were sold. The line connecting these data points depicts a line chart. A line chart is also called a line graph.
Parts of a Line Chart
Two of the main parts of a line chart are the x-axis and the y-axis. The x-axis is also known as the independent axis because its values do not depend on anything. The y-axis is also known as the dependent axis because its values depend on variables on the x-axis. Each of these axes is labeled in a type of data, for example, the x-axis is labeled as weeks, months, etc. and the y-axis is labeled as dollars or the quantity of the item. The data points are marked on the chart according to the x-axis and y-axis which are joined by a line in a dot-to-dot pattern. The various parts of a line chart are:
- Title: The title tells us what the line chart is all about, i.e., what information are we gathering from the chart.
- Labels: The horizontal axis across the bottom and the vertical label along the side tell us what kinds of data are being shown.
- Scales: The horizontal scale across the bottom and the vertical scale along the side tell us how much or how many.
- Points: The data points or dots represent the (x,y) coordinates. More than one data line can be present in a line chart.
- Lines: Straight lines connecting the points give estimated values between the points. The line can either be straight or curved.
Types of Line Chart
A line chart has three main types that are mainly used in both mathematics and statistics. The three types are: Simple line chart, Multiple line chart, and compound line charts.
Simple Line Chart
A simple line chart is plotted with only a single line that shows the relationship between two different variables; for example, the day of the week and the closing price of a security. A simple line chart is the classic line chart that is most commonly used in daily life. The image below shows an example of a simple line chart.
Multiple Line Chart
A multiple line chart is a line chart that is plotted with two or more lines. When we need to show data about two or more variables that have varying data points depending on the period of time, a multiple line chart. This type of line chart is also helpful when we need to compare data like temperatures, prices, etc. Look at the image below that shows the comparison of prices of Mercedez-Benz among three cities.
Compound Line Chart
A compound line chart helps in showcasing data that are subdivided into different types and expands beyond the simple line chart. A compound line chart shows multiple data sets in one chart. In other words, a compound line chart is a combination of a simple line chart and multiple line chart. A compound line chart looks like the image below.
Advantages and Disadvantages of Line Chart
A line chart helps in emphasizing the change in data of a variable plotted in the x-axis compared to the second variable on the y-axis. There are certain do's and don't's or advantages and disadvantages of using line charts, lets see what they are:
| Advantage | Disadvantage |
| Line charts help in gathering data when a good measure of the interval is seen. | Usage of zero value baseline. |
| Can use more than one line to plot data | Overuse of lines will make the line chart very messy. |
| Line charts can have both straight lines and curve lines. | Cannot have both straight lines and curved lines together on one line chart. |
| Cannot have dual axis in one line chart. |
Creating a Line Chart
The following steps can be used to create a line chart.
- Create a table: Draw the x-axis and y-axis on a page. On the top of the page, place a title that briefly describes the purpose of the chart.
- Label each axis: If time is one of the factors, it should go along the horizontal (x) axis. The other numeric values, i.e., the dependent variables measured should be placed along the vertical (y) axis. Each axis should be labeled with the name of the numeric system as well as the measurements being used. For example, you may label the x-axis with independent variables like hours or months, indicating that each number written on the axis is the number of hours or months. Divide each axis evenly into applicable increments.
- Add data: Data for a line chart is usually presented in a two-column table corresponding to the x-axis and y-axis. Once you've added your data, your line chart will automatically reflect its values.
- Create a key: If you are comparing multiple items, you'll want to create a key that identifies what each line is by its color.
Related Topics
Listed below are a few interesting topics related to the line chart, take a look:
Examples on Line Chart
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Example 1: The temperature of a city from 5 a.m. to 8 p.m. on a day was recorded in the form of a line graph as shown below. Study the line chart and answer the following questions.
a) On which time of the day was the temperature 40° F?
b) What was the maximum recorded temperature?
Solution:
a) The temperature was 40° F at 5 a.m. and from 5 p.m. to 8 p.m.
b) The maximum recorded temperature was 60° F. -
Example 2: A bookshop made a line chart of the number of books it sold each week during a certain period. Based on the information provided in the line chart, find how many fewer books were sold in week 8 than in week 7.
Solution:
Number of books sold in week 7= 90
Number of books sold in week 8= 10
So, the difference = 80
Therefore, there were 80 fewer books sold in week 8 as compared to week 7.
FAQs on Line Chart
What is a Line Chart?
A line chart is a form of graphical representation of data in the form of points that are joined continuously with the help of a line. The line can either be straight or curved depending on the data being researched. Line charts are the simplest form of representing quantitative data between two variables that are shown with the help of a line that can either be straight or curved.
What are the Types of Line Charts?
There are three main types of line charts, they are:
- Simple Line Chart - A chart that depicts only one data and has only one line joining the points.
- Multiple Line Chart - A chart that depicts multiple data. This type of chart is good for comparison since multiple lines are used.
- Compound Line Chart - A compound line chart is a combination of both simple and multiple. This type of chart helps in analyzing the data deeper.
What are the Parts of a Line Chart?
The parts of a chart that are shown in x-axis and y-axis are:
- Title: The title tells us what the line chart is all about, i.e., what information are we gathering from the chart.
- Labels: The horizontal axis across the bottom and the vertical label along the side tell us what kinds of data are being shown.
- Scales: The horizontal scale across the bottom and the vertical scale along the side tell us how much or how many.
- Points: The data points or dots represent the (x,y) coordinates. More than one data line can be present in a line chart.
- Lines: Straight lines connecting the points give estimated values between the points. The line can either be straight or curved.
What is Line Chart Used for?
A line chart helps in showcasing the highs and lows of data. A line chart is used in showing data on temperature, on finances, on comparing two or more data, etc. This type of graphical representation is considered better than a bar graph.
What is Line Area Chart?
An area chart is another type of graphical representation that is a combination of a line chart and bar chart. An area chart showcases data of more than one quantity to show the difference in progression. This type of chart is mostly used in showing time.