Remember: Pie diagrams are used to represent the total number of observations of different types in the data set on a percentage basis in a circle. The number of complaints lodged due to road accidents with a year for 5 consecutive years is not suitable for representation of a pie diagram. Hence statement 1 is incorrect. Budgetary allocation of the total available funds to the various items of expenditure is suitable for representation of a pie diagram. Hence statement 2 is correct.