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	<title>Comments on: What Goes into the Price of Gas?</title>
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	<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/</link>
	<description>Peltier Tech Excel Charts and Programming Blog</description>
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		<title>By: Jon Peltier</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-2163</link>
		<dc:creator>Jon Peltier</dc:creator>
		<pubDate>Tue, 08 Jul 2008 17:44:15 +0000</pubDate>
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		<description>The problem with stacked charts is that each successive bar on the stack has a different baseline, so it becomes difficult to compare bars within the stack or between stacks. All I should need to do is put a title on the horizontal axis of chart (a) to say &quot;percentage of total gasoline price&quot;.</description>
		<content:encoded><![CDATA[<p>The problem with stacked charts is that each successive bar on the stack has a different baseline, so it becomes difficult to compare bars within the stack or between stacks. All I should need to do is put a title on the horizontal axis of chart (a) to say &#8220;percentage of total gasoline price&#8221;.</p>
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		<title>By: Gary</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-2162</link>
		<dc:creator>Gary</dc:creator>
		<pubDate>Tue, 08 Jul 2008 17:21:11 +0000</pubDate>
		<guid isPermaLink="false">http://peltiertech.com/WordPress/?p=134#comment-2162</guid>
		<description>I think the original chart - and the reinterpreted chart (a) - are both misleading, dare I say wrong in approach. I agree that (b) is the single one that shows the most important information. If you wanted to add some chart junk, you could overlay the % change for each of the four components near their bars; e.g., Crude +197%.

If the overall price weren&#039;t changing much, then maybe the relative contributions of different components would be an OK story, maybe less misleading, but even there I&#039;d say chart (b) is going to tell that story as well as chart (a), and provide some additional information to boot.

And in that case, shouldn&#039;t it be a stacked bar, since the components add to 100% and that should be called out?</description>
		<content:encoded><![CDATA[<p>I think the original chart &#8211; and the reinterpreted chart (a) &#8211; are both misleading, dare I say wrong in approach. I agree that (b) is the single one that shows the most important information. If you wanted to add some chart junk, you could overlay the % change for each of the four components near their bars; e.g., Crude +197%.</p>
<p>If the overall price weren&#8217;t changing much, then maybe the relative contributions of different components would be an OK story, maybe less misleading, but even there I&#8217;d say chart (b) is going to tell that story as well as chart (a), and provide some additional information to boot.</p>
<p>And in that case, shouldn&#8217;t it be a stacked bar, since the components add to 100% and that should be called out?</p>
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		<title>By: Jon Peltier</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-2017</link>
		<dc:creator>Jon Peltier</dc:creator>
		<pubDate>Tue, 01 Jul 2008 15:59:28 +0000</pubDate>
		<guid isPermaLink="false">http://peltiertech.com/WordPress/?p=134#comment-2017</guid>
		<description>The price of crude is a factor in the cost of gasoline, and for the analysis it is an independent variable. The relationship is simplified, because the cost of the gallon of gas I am currently buying is dependent on the price of the amount of crude that was used to produce the gasoline.

For purposes of political discussions, the price of crude may not be not independent, but that is a different argument. Also notice that I said &quot;cost&quot; of gasoline, not &quot;price&quot;. Production and distribution variations, as well as market and supplier induced supply and demand fluctuations, can also impact day-to-day gasoline prices. Ever notice that the price of gas increases right before Memorial Day (end of May in the US)? This is because the weather is nice and people start taking vacations and driving more.

It&#039;s possible the choice of graphic was influenced to minimize the visual impact of crude price. I couldn&#039;t tell by reading he chain of references which eventually led me to the CIO article &lt;a href=&quot;http://www.cio.com/article/375365/Gas_Prices_How_Oil_Companies_Use_Business_Intelligence_To_Maximize_Profits&quot; rel=&quot;nofollow&quot;&gt;Gas Prices: How Oil Companies Use Business Intelligence To Maximize Profits&lt;/a&gt;. The article was a bit of fluff extolling the virtues of all the wonderful BI software that&#039;s available. The featured graphic, by the way, is NOT at al related to BI.</description>
		<content:encoded><![CDATA[<p>The price of crude is a factor in the cost of gasoline, and for the analysis it is an independent variable. The relationship is simplified, because the cost of the gallon of gas I am currently buying is dependent on the price of the amount of crude that was used to produce the gasoline.</p>
<p>For purposes of political discussions, the price of crude may not be not independent, but that is a different argument. Also notice that I said &#8220;cost&#8221; of gasoline, not &#8220;price&#8221;. Production and distribution variations, as well as market and supplier induced supply and demand fluctuations, can also impact day-to-day gasoline prices. Ever notice that the price of gas increases right before Memorial Day (end of May in the US)? This is because the weather is nice and people start taking vacations and driving more.</p>
<p>It&#8217;s possible the choice of graphic was influenced to minimize the visual impact of crude price. I couldn&#8217;t tell by reading he chain of references which eventually led me to the CIO article <a href="http://www.cio.com/article/375365/Gas_Prices_How_Oil_Companies_Use_Business_Intelligence_To_Maximize_Profits" rel="nofollow">Gas Prices: How Oil Companies Use Business Intelligence To Maximize Profits</a>. The article was a bit of fluff extolling the virtues of all the wonderful BI software that&#8217;s available. The featured graphic, by the way, is NOT at al related to BI.</p>
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		<title>By: Damir Sudarevic</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-2016</link>
		<dc:creator>Damir Sudarevic</dc:creator>
		<pubDate>Tue, 01 Jul 2008 15:42:19 +0000</pubDate>
		<guid isPermaLink="false">http://peltiertech.com/WordPress/?p=134#comment-2016</guid>
		<description>Well, the implied assumption is that the input value (price of the crude) is independent variable or at least controlled by some random events occurring in another galaxy deep in space. This is not the case; the same people who published the cart are the same ones influencing that input parameter and driving it up as much as they can. That makes their conclusion for the price of gas pure nonsense. Tufte has a whole chapter on graphical integrity and lying with charts.</description>
		<content:encoded><![CDATA[<p>Well, the implied assumption is that the input value (price of the crude) is independent variable or at least controlled by some random events occurring in another galaxy deep in space. This is not the case; the same people who published the cart are the same ones influencing that input parameter and driving it up as much as they can. That makes their conclusion for the price of gas pure nonsense. Tufte has a whole chapter on graphical integrity and lying with charts.</p>
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		<title>By: Colin Banfield</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-1997</link>
		<dc:creator>Colin Banfield</dc:creator>
		<pubDate>Mon, 30 Jun 2008 20:30:26 +0000</pubDate>
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		<description>Jon, my thoughts exactly!</description>
		<content:encoded><![CDATA[<p>Jon, my thoughts exactly!</p>
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		<title>By: Jon Peltier</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-1996</link>
		<dc:creator>Jon Peltier</dc:creator>
		<pubDate>Mon, 30 Jun 2008 20:20:14 +0000</pubDate>
		<guid isPermaLink="false">http://peltiertech.com/WordPress/?p=134#comment-1996</guid>
		<description>Colin -

Good points. I think a good composite would be dividing the chart space into four quarters, two-by-two, putting the cost contribution chart across the top two, to provide adequate resolution in the value axis, and putting the other two into the bottom left and right quadrants, perhaps sharing the category axis.</description>
		<content:encoded><![CDATA[<p>Colin -</p>
<p>Good points. I think a good composite would be dividing the chart space into four quarters, two-by-two, putting the cost contribution chart across the top two, to provide adequate resolution in the value axis, and putting the other two into the bottom left and right quadrants, perhaps sharing the category axis.</p>
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		<title>By: Colin Banfield</title>
		<link>http://peltiertech.com/WordPress/what-goes-into-the-price-of-gas/comment-page-1/#comment-1995</link>
		<dc:creator>Colin Banfield</dc:creator>
		<pubDate>Mon, 30 Jun 2008 20:16:42 +0000</pubDate>
		<guid isPermaLink="false">http://peltiertech.com/WordPress/?p=134#comment-1995</guid>
		<description>Very nice analysis.  You could probably fit all three charts into the same space as the original junk chart and they&#039;ll still be legible!  The value axis isn&#039;t required and if you fit two charts side-by-side, you can use a single category axis.  If (b) will have the most emphasis, use the top area for that one and the bottom area for (a) and (c).</description>
		<content:encoded><![CDATA[<p>Very nice analysis.  You could probably fit all three charts into the same space as the original junk chart and they&#8217;ll still be legible!  The value axis isn&#8217;t required and if you fit two charts side-by-side, you can use a single category axis.  If (b) will have the most emphasis, use the top area for that one and the bottom area for (a) and (c).</p>
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