The ideal uses for pie charts are to illustrate the corresponding ratios of components to a whole and to demonstrate how a whole is divided into its individual pieces. When properly sized categories are present pie charts can be used for straightforward, equal comparison. For more in-depth comparisons a bar graph would work better than a pie chart. Labeling, ordering, and limiting slices are some tips when creating a pie chart. When labeling, verify that the appropriate number or percentage is written on the label of each slice. To keep a pie chart organized slices can be arranged from largest to smallest or smallest to largest. Use a different chart type if the chart includes more than five slices to limit clutter. There are certain cases where pie charts are not the ideal option. When there are too many categories in the data or the data values are too similar a pie chart would not be the best fit. If the data contains any values that are not positive integers, a pie chart is not the right choice.
Below I have included a good example of a pie chart that is properly labeled, ordered, and contains limited data.
Pie charts provide a clear visual representation of percentages and proportions, which makes it easier to understand data distribution. Making judgments based on data representation is simple with the use of pie chart analysis. Pie charts offer an immediately comprehensible visual depiction. Pie charts make it simple to compare different areas and provide information about those with the greatest impact. Pie charts are very helpful in the business world. They can guide investments and have an impact on plans for advertising and the creation of products. Decision-making based on data can be substantially improved by the use of pie charts and their interpretations.
Below is a pie chart that I created in excel. It represents college graduates in New Jersey by fields.