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X-axis

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Principles of Finance

Definition

The x-axis is the horizontal axis on a graph that typically represents independent variables or time. It is used in finance to display data trends over specific periods or categories.

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5 Must Know Facts For Your Next Test

  1. In financial graphs, the x-axis often represents time intervals such as days, months, or years.
  2. The x-axis can also represent different categories like stock names or sectors when displaying comparative data.
  3. Proper labeling of the x-axis is crucial for accurately interpreting financial data trends.
  4. The scale of the x-axis should be chosen carefully to avoid misrepresentation of data patterns.
  5. In scatter plots used for regression analysis, the x-axis usually holds the predictor variable.

Review Questions

  • What type of data is commonly represented on the x-axis in financial graphs?
  • Why is it important to label and scale the x-axis accurately?
  • How does the use of the x-axis differ between line charts and scatter plots?
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