What type of graph is used to represent the relationship between estimated sales growth and estimated P/E multiple?

A scatterplot is the most effective choice for representing the relationship between two quantitative variables, in this case, estimated sales growth and estimated P/E (Price-to-Earnings) multiple. Scatterplots display data points on a Cartesian plane, allowing for the visualization of correlations or trends between the two variables. By plotting each company's estimated sales growth against its estimated P/E multiple, you can easily identify patterns, clusters, or outliers, which can reveal insights into how these two financial metrics interact.

Bar charts are typically used for categorical data to compare different groups or categories, which would not be suitable for showing the continuous relationship between sales growth and P/E multiples. Line graphs are most effective for showcasing trends over time, making them less appropriate for comparing discrete pairs of sales growth and P/E valuation in a single visualization. Pie charts illustrate proportions of a whole and are not designed for revealing relationships between two distinct variables. Thus, the scatterplot is the most suitable choice for this type of data analysis.