Question

Carefully read and think about the exhibit shown below. Then, give a detailed answer to the questions that accompany the exhibit.

CD Sales Percentage market share for three online sellers of compact discs. CUC 4% N2K 12% CDNow 33% Source: David S. Moore and Wllam I. Notz, Statistics: Concepts and Controversies, 6th ed. (New York: W.H.Freeman and Company, 2006), 195. Questions Ignoring the numbers on the graph, what might you infer about the market share for CDNow compared to CUC? 1. 2. How does your visual impression compare to what the numbers say?

Answer 1

Please read the answer below. Don't hesitate to give a "thumbs up" in case you're satisfied with the answer.

1. We will tend to believe that CDNOW' market share is many many times CUC'

2. But when you see the numbers, reality sinks in : it is just 9 times. But when you see the graph, you can easily fit 9 CUC graphs(4%*9 = 36%>33%), but the numbers are 4% for CUC and 33% CDNOW, so the graph is misrepresenting
numbers. The graph is misleading, and it not to be relied on.