What is an array of hockey sticks?
A hockey stick graph is a line graph in which a sharp increase occurs suddenly after a short period of rest. The line connecting the data points looks like a hockey stick. Hockey stick cards have been used in the business world and as a visual to show dramatic changes, such as global temperatures and poverty statistics.
Key points to remember
- A hockey stick graph is a graph characterized by a sharp increase after a relatively flat and calm period.
- It is generally observed in scientific research measuring medical results or environmental studies. In the case of commercial sales, a hockey stick card is represented by a sudden and dramatic increase in sales.
- It is important to analyze whether the sudden increase is a permanent situation or an aberration.
Understanding the hockey stick tables
A hockey stick consists of a blade, a small curve and a long handle. A hockey stick graph displays low-level activity data (y-axis) over a short period of time (x-axis), then a sudden turn indicating an inflection point, and finally a long, straight climb to a steep angle.
The graph is generally observed in scientific laboratories, such as in the field of medicine or environmental studies. Scientists, for example, have plotted global warming data on a graph that follows a hockey stick pattern. Social scientists also know the graph. Some observations on the rate of increase in poverty have been defined by this form. The array of hockey sticks may require immediate attention. A sudden and dramatic change in the direction of data points from a flat period to what is visible in a hockey stick graph is a clear indicator that more emphasis should be placed on causal factors. If the data offset occurs over a short period, it is important to determine whether the offset is an aberration or if it represents a fundamental change.
Commercial example of a hockey stick board
Groupon Inc. has the distinction of being the fastest company in business history to achieve $ 1 billion in sales. He accomplished this in about two and a half years, half the time of Amazon and Google. Imagine sales of less than $ 100,000 in 2008 and $ 14.5 million in 2009. This is the blade part of the hockey stick. In 2020, the company generated revenue of $ 313 million, representing the point of upward flexion or inflection of the stick. Then in 2020, Groupon generated $ 1.6 billion in sales. Plotted on a graph with sales on the y-axis and time on the x-axis, the data clearly illustrates a hockey stick model. However, despite the company’s success at the time, soaring revenues did not mean it was profitable. In fact, net losses in 2020 and 2020 were $ 413 million and $ 275 million, respectively, due to selling and marketing expenses.