Do not distort quantities

Rafael Irizarry

During President Barack Obama’s 2011 State of the Union Address, the following chart was used to compare the US GDP to the GDP of four competing nations:

In a 2011 State of the Union Address, President Obama shows data that compares the world economies to America's. Data shows the GDP of the United States, China, Japan, Germany, and France in 2010. Due to the scaling of the data, America's growth seems far greater than any other country.
President Obama compares America’s economic growth in 2010 to other countries’. Source: The 2011 State of the Union Address

Judging by the area of the circles, the US appears to have an economy over five times larger than China’s and over 30 times larger than France’s. However, if we look at the actual numbers, we see that this is not the case. The actual ratios are 2.6 and 5.8 times bigger than China and France, respectively. The reason for this distortion is that the radius, rather than the area, was made to be proportional to the quantity, which implies that the proportion between the areas is squared: 2.6 turns into 6.5 and 5.8 turns into 34.1. Here is a comparison of the circles we get if we make the value proportional to the radius and to the area:

A revised version of the graph shown in the 2011 State of the Union Address, when the scale is altered.
A revised version of the 2011 data shows how similar the GDPs are.

Of course, in this case, we really should not be using area at all since we can use position and length:

Another revised version of the 2011 data, this time using a bar graph. Using the scale of 0 to 6 trillion dollars, the United State's GDP shows as far greater than the other data points.
Another revised version of the 2011 data, using a bar graph.

License

Icon for the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

Business Analytics Copyright © by Di Shang is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

Share This Book