{"id":1515,"date":"2024-04-24T09:00:14","date_gmt":"2024-04-24T16:00:14","guid":{"rendered":"https:\/\/magoosh.com\/gmat\/?p=1515"},"modified":"2012-10-22T13:56:49","modified_gmt":"2012-10-22T20:56:49","slug":"gmat-data-insights-bubble-charts","status":"publish","type":"post","link":"https:\/\/magoosh.com\/gmat\/gmat-data-insights-bubble-charts\/","title":{"rendered":"GMAT Data Insights: Bubble Charts"},"content":{"rendered":"

Fact<\/strong>: One type of chart about which the GMAT DI can ask is a bubble chart<\/span>.<\/p>\n

What in Sam Hill is a bubble chart?<\/p>\n

 <\/p>\n

Scatterplots<\/h2>\n

A bubble chart is a close cousin to a scatterplot.\u00a0 In a scatterplot, each data point has values in two different variables, and for each data point, its vertical & horizontal position on the graph tells its value in those two variables.\u00a0 For example, here’s a scatterplot:<\/p>\n

\u00a0\"\"<\/a><\/p>\n

Each dot on this scatterplot is a company.\u00a0 The vertical position of the dot tells you the 2011 revenue of the company.\u00a0 The horizontal position tells you the year the company was founded.\u00a0 For example, there’s a company founded in 2001 that has revenues under $100K — it appears to have had 2011 revenues of around only $70K, the lowest of the six companies shown.\u00a0 It appears the oldest company did quite well, but then the next two oldest companies have come nowhere close to the success of the older company, while some of the younger companies have done much better.\u00a0 This data makes us curious: after the oldest company, why were the next two companies relatively unsuccessful, but later companies were relatively successful?<\/p>\n

 <\/p>\n

The Added Dimension of Bubble Charts<\/h2>\n

The beginning of an answer to this question shows up on the bubble chart.\u00a0 On a bubble chart, the center of the “bubble” is exactly like a dot on a scatterplot — it shows you the value of a horizontal and vertical variable.\u00a0 The size of the bubble adds a third variable.\u00a0 In fact, the very point of bubble charts to display data points, each of which has a value in each of three<\/span> different variables.\u00a0 Bubble charts provide a quick way to visually display what is going on with three different variables at once.<\/p>\n

Below is a bubble chart based on the same data.\u00a0 Notice: the vertical and horizontal variables are identical, so the centers of the bubbles in the chart below are exactly the same as the locations of the dots in the chart above.\u00a0 In this new graph, the size of the bubble introduces a new variable: number of employees.<\/p>\n

\u00a0\"\"<\/a><\/p>\n

Just for a sense of scale, I’ll say that Company A (the oldest, founded in 1996) has 78 employees, and Company F (the youngest, founded in 2010) has 12 employees.<\/p>\n

Notice how much more nuanced the story becomes now.\u00a0 Company A was founded first: it’s the oldest, with the largest 2011 revenues and the second largest number of employees.\u00a0 The next two companies were also relatively large companies, and they didn’t do well.\u00a0 By contrast, the fourth company, founded in 2002, is a very small company, and it has almost caught up to Company A in terms of revenue.\u00a0 We don’t know how this small company manages to do what it does with so few employees — a vastly superior product? the brilliant use of technology?\u00a0 Obviously, there’s more to the story, but notice how the size of the bubbles added a whole other dimension to the story.<\/p>\n

 <\/p>\n

Practice Questions<\/h2>\n

Here’s are some practice DI questions, along similar lines:<\/p>\n

The graph below shows the development of Company XYZ, founded in 2001.\u00a0 The vertical axis shows the average number of employees each year, and the size of the dots represents the annual revenues that year.<\/p>\n

\u00a0\"\"<\/a><\/p>\n

1. In what year did the company have the highest revenue?<\/p>\n

A. 2006<\/p>\n

B. 2007<\/p>\n

C. 2009<\/p>\n

D. 2010<\/p>\n

E. 2011<\/p>\n

 <\/p>\n

2. What was the percentage decrease in the number of employees from 2007 to 2008?<\/p>\n

A. 41.6%<\/p>\n

B. 58.3%<\/p>\n

C. 85.7%<\/p>\n

D. 171.4%<\/p>\n

E. 240%<\/p>\n

 <\/p>\n

3. Which is a clear trend for Company XYZ during the years 2003 \u2013 2007, before the subprime mortgage crisis?<\/p>\n

A. number of employees decreases; revenue decreases<\/p>\n

B. number of employees stays about the same, revenue stays about the same<\/p>\n

C. number of employees stays about the same; revenue increases<\/p>\n

D. number of employees increases, revenue stays about the same<\/p>\n

E. number of employees increases, revenue increases<\/p>\n

 <\/p>\n

4. Which is a clear trend for Company XYZ during the years 2008 \u2013 2011, in the aftermath of the subprime mortgage crisis?<\/p>\n

A. number of employees decreases; revenue decreases<\/p>\n

B. number of employees stays about the same, revenue stays about the same<\/p>\n

C. number of employees stays about the same; revenue increases<\/p>\n

D. number of employees increases, revenue stays about the same<\/p>\n

E. number of employees increases, revenue increases<\/p>\n

 <\/p>\n

 <\/p>\n

Answers and Explanations<\/h2>\n

1) This is a simple read the graph question.\u00a0 Revenue is given by size of the bubble, so we are simply looking for the biggest bubble.\u00a0 The biggest bubble on the graph occurs at 2007, so the answer is B<\/strong>.<\/p>\n

2) For percentage decrease, it’s important to remember the formula is:<\/p>\n

Percent Decrease = \u00a0x 100%<\/p>\n

\u00a0\u00a0\u00a0\u00a0 For anything you can count, like number of employees, it’s impossible to have a percentage decrease greater than 100%.\u00a0 A percentage decrease of 100% would mean employees went to zero: the company went out of business.\u00a0 You can’t have a negative number of employees, so the percentage decrease can never be more than 100%.\u00a0 Theoretically, one could talk about more than 100% decrease in something monetary, like assets or profits —- more than a 100% decrease would mean one started “in the black” and ended “in the red.”<\/p>\n

Here, the start is about 120 employees, and the difference, the loss of employees, is about 120 \u2013 70 = 50.\u00a0 Notice that 50 is less than half of 120, so this is less than a 50% decrease.\u00a0 The only possible answer is A<\/strong>.<\/p>\n

3) During the years before the subprime mortgage crisis, from 2003 \u2013 2007, the bubbles rise vertically year after year, indicating that employees are increasing.\u00a0 The size of the dots also increases steady during that five-year period, so revenues are increasing as well.\u00a0 This scenario is described by E<\/strong>.<\/p>\n

4) During the years following the subprime mortgage crisis, from 2008 \u2013 2011, the bubbles all hover around the same height — a little up, a little down, but not really leaving that 60-80 range.\u00a0 The number of employees appears rangebound, which is another way of saying: they are staying about the same.\u00a0 Notice, though, that starting with a small bubble in 2008, the size of the bubble steadily gets bigger, until 2011, which appears to be the third largest bubble on the chart.\u00a0 Revenues are definitely increases.\u00a0 Apparently, the wake of the subprime mortgage crisis, Company XYZ figured out how to “do more with less.”\u00a0 This scenario is described by C<\/strong>.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Fact: One type of chart about which the GMAT DI can ask is a bubble chart. What in Sam Hill is a bubble chart?   Scatterplots A bubble chart is a close cousin to a scatterplot.\u00a0 In a scatterplot, each data point has values in two different variables, and for each data point, its vertical […]<\/p>\n","protected":false},"author":26,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13262],"tags":[],"ppma_author":[13209],"class_list":["post-1515","post","type-post","status-publish","format-standard","hentry","category-data-insights"],"acf":[],"yoast_head":"\nGMAT Data Insights: Bubble Charts - Magoosh Blog \u2014 GMAT\u00ae Exam<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/magoosh.com\/gmat\/gmat-data-insights-bubble-charts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GMAT Data Insights: Bubble Charts\" \/>\n<meta property=\"og:description\" content=\"Fact: One type of chart about which the GMAT DI can ask is a bubble chart. 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Beyond standardized testing, Mike has over 20 years of both private and public high school teaching experience specializing in math and physics. In his free time, Mike likes smashing foosballs into orbit, and despite having no obvious cranial deficiency, he insists on rooting for the NY Mets. 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He was also featured as \"member of the month\" for over two years at <a href=\"https:\/\/gmatclub.com\/blog\/2012\/09\/mike-mcgarrys-gmat-experience\/\" rel=\"noopener noreferrer\">GMAT Club<\/a>. Mike holds an A.B. in Physics (graduating <em>magna cum laude<\/em>) and an M.T.S. in Religions of the World, both from Harvard. Beyond standardized testing, Mike has over 20 years of both private and public high school teaching experience specializing in math and physics. In his free time, Mike likes smashing foosballs into orbit, and despite having no obvious cranial deficiency, he insists on rooting for the NY Mets. Learn more about the GMAT through Mike's <a href=\"https:\/\/www.youtube.com\/c\/MagooshGMATChannel\/featured\" rel=\"noopener noreferrer\">Youtube <\/a>video explanations and resources like <a href=\"https:\/\/magoosh.com\/gmat\/whats-a-good-gmat-score\/\" rel=\"noopener noreferrer\">What is a Good GMAT Score?<\/a> and the <a href=\"https:\/\/magoosh.com\/gmat\/gmat-diagnostic-test\/\" rel=\"noopener noreferrer\">GMAT Diagnostic Test<\/a>."}],"_links":{"self":[{"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/posts\/1515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/comments?post=1515"}],"version-history":[{"count":0,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/posts\/1515\/revisions"}],"wp:attachment":[{"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/media?parent=1515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/categories?post=1515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/tags?post=1515"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/magoosh.com\/gmat\/wp-json\/wp\/v2\/ppma_author?post=1515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}