Principles of Finance

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Y-axis

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Principles of Finance

Definition

The y-axis is the vertical line in a two-dimensional graph that represents the range of values for one variable. It is used to plot data points in relation to the x-axis, which runs horizontally.

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5 Must Know Facts For Your Next Test

  1. The y-axis typically represents dependent variables in financial data visualizations.
  2. In financial graphs, the y-axis can show metrics such as stock prices, interest rates, or revenue over time.
  3. Scaling on the y-axis must be consistent to accurately interpret trends and patterns.
  4. Y-axes can be logarithmic or linear, affecting how data is visualized and interpreted.
  5. Labeling the y-axis clearly with units of measurement is crucial for understanding financial charts.

Review Questions

  • What type of variable is usually represented by the y-axis in financial graphs?
  • Why is it important to have a consistent scale on the y-axis?
  • How does a logarithmic scale on the y-axis differ from a linear scale?
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