Module 3: Visualization Techniques Flashcards
What is a ‘bar plot’?
- Its a chart used to compare values of a small number of observations
- X - axis represents the observations
- Y axis represents their values characcterised by the height of the bar
What can bar plots also allow us to do?
- Analyze th evolution of a small number of observations
What is a ‘comovement’?
-Its a term used to describe the observed relationship between two series
What does a positive co-movement mean?
- It means the two series are moving in the same direction on average
What does a negative co-movement mean?
- It means the two series are moving in opposite directions on average
What should I remember about co-movements?
- Just because their is co-movement does not imply an actual relationship exists.
What does a histogram mean?
- Its a particular bar chart that illustrates the distribution of a series or a variable
- The range of the series (min-max) is divided into intervals and the height of the bae corresponds to the number of observations included in each interval.
- The Y axis shows the number of observattions that we have in each intrval represented by the bas eof the rectangle
What is a line chart?
- This is a graph that presents a successive (sequence) of observations connected by lines.
A line chart is typically used to show the evolution of a sries through time.
- The x axis represnts the time
- The y-axis represents the value of the observatis and the points connected by the line
What does a relationship mean?
It describes the link between two variables
What does an indirect/direct relationship mean?
- A direct realtion means if one variable is causing the other
- An indirect relationship is if ne variable is causing the other through a third variable
Whats an example of a direct and indirect relationship?
Direct - co2 emission is causing global warmig
Indirect - Is when theres cold weather comes causes snow and people buy shovels
What does a scatter plot mean?
- Its a chart used to illsurate comovement between two series
- The x axis represents the values of one series
- The y axis represents the value of another series
-The points are not usually connected by lines
What is co-movement?
- Its an observed reltionship
- Its not a direct or indirect relationship as it this implicates that their linked together
What does ‘short term fluctuations’ mean?
- This is the behavior of series over shorter periods of time
- How we define it as movement of a series over a few months, quarter or years
What is trending behavior?
- This is the behavior of a series on average over a long period of time
- Long period indicates the period spanned by our dataset
- A positive trend indicates the series is increasing on average over the period
- A negative trend indicates that the series is decreasing on average over the period.
What does ‘volitaty’ mean?
- This term describes the intensity of the short ter flucutations
What happens if two series have the same measurement units + scale?
- If one fluctuates higher than the other we cannot compare the volitaty of two series with different measurement units and scales
What is a time series chart?
- this is a graph that is in chronilogical order
- The x axis represents time
What is trending behavior?
- Its when we discuss the overall evolution of a time series
How do we interpret the evolution of two or more time series?
One way is to combine multiple time series on the same graph
- To do this it must have comparable scales and similar units
What to do if the scales are not simialr
One way is to have two y-axis on each side of the graph with different scales (not an option in this course)
What kind of information does the difference in logs carry?
It carries and shows how the growth rate is changing through time
What is an easier way to analyze the evolution of growth rates
- Is to express the variable in log
Can some scatter plots be connected by points
YES!!!
