General Education Development (GED) Practice Exam

What type of visual aid is most likely used to present a report on monthly stock gains and losses over a one-year period?

1. Bar chart

2. Pie chart

3. Line graph

4. Scatterplot

The correct answer is: Line graph

A line graph is particularly effective for presenting a report on monthly stock gains and losses over a one-year period because it allows for the clear representation of data points over time. In this scenario, the x-axis typically represents the months, while the y-axis represents stock values or gains and losses. By connecting data points with lines, the viewer can easily identify trends, fluctuations, and patterns over the entire year, which is essential for analyzing how stock performance changes over time. This format enhances the reader's ability to quickly observe rises and falls in stock values, making it ideal for tracking the performance of investments month by month. The visual continuity of a line graph simplifies the understanding of temporal relationships, showing how the data evolves, which is crucial for making informed investment decisions. Other visual aids, like bar charts, pie charts, or scatterplots, serve different purposes. Bar charts typically excel at comparing quantities across categories but may not convey trends as effectively over time. Pie charts represent parts of a whole and are not designed for showing changes over periods. Scatterplots illustrate the relationship between two variables but lack the straightforward temporal progression that is critical in this context.