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Data visualization refers to the techniques used to communicate data or information by encoding it as visual objects (e.g., points, lines or bars) contained in graphics. The goal is to communicate information clearly and efficiently to users.

In his 1983 book The Visual Display of Quantitative Information, Edward Tufte defines ‘graphical displays’ and principles for effective graphical display in the following passage:

“Excellence in statistical graphics consists of complex ideas communicated with clarity, precision and efficiency. Graphical displays should:

  • show the data
  • induce the viewer to think about the substance rather than about methodology, graphic design, the technology of graphic production or something else
  • avoid distorting what the data has to say
  • present many numbers in a small space
  • make large data sets coherent
  • encourage the eye to compare different pieces of data
  • reveal the data at several levels of detail, from a broad overview to the fine structure
  • serve a reasonably clear purpose: description, exploration, tabulation or decoration
  • be closely integrated with the statistical and verbal descriptions of a data set.

Graphics reveal data. Indeed graphics can be more precise and revealing than conventional statistical computations.”

Author Stephen Few described eight types of quantitative messages that users may attempt to understand or communicate from a set of data and the associated graphs used to help communicate the message:

  1. Time-series: A single variable is captured over a period of time, such as the unemployment rate over a 10-year period. A line chart may be used to demonstrate the trend.
  2. Ranking: Categorical subdivisions are ranked in ascending or descending order, such as a ranking of sales performance (the measure) by sales persons (the category, with each sales person a categorical subdivision) during a single period. A bar chart may be used to show the comparison across the sales persons.
  3. Part-to-whole: Categorical subdivisions are measured as a ratio to the whole (i.e., a percentage out of 100%). A pie chart or bar chart can show the comparison of ratios, such as the market share represented by competitors in a market.
  4. Deviation: Categorical subdivisions are compared against a reference, such as a comparison of actual vs. budget expenses for several departments of a business for a given time period. A bar chart can show comparison of the actual versus the reference amount.
  5. Frequency distribution: Shows the number of observations of a particular variable for given interval, such as the number of years in which the stock market return is between intervals such as 0-10%, 11-20%, etc. A histogram, a type of bar chart, may be used for this analysis. A boxplot helps visualize key statistics about the distribution, such as median, quartiles, outliers, etc.
  6. Correlation: Comparison between observations represented by two variables (X,Y) to determine if they tend to move in the same or opposite directions. For example, plotting unemployment (X) and inflation (Y) for a sample of months. A scatter plot is typically used for this message.
  7. Nominal comparison: Comparing categorical subdivisions in no particular order, such as the sales volume by product code. A bar chart may be used for this comparison.
  8. Geographic or geospatial: Comparison of a variable across a map or layout, such as the unemployment rate by state or the number of persons on the various floors of a building. A cartogram is a typical graphic used.

Analysts reviewing a set of data may consider whether some or all of the messages and graphic types above are applicable to their task and audience. The process of trial and error to identify meaningful relationships and messages in the data is part of exploratory data analysis.

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