What steps should you take to add data labels to an existing chart?

To add data labels to an existing chart effectively, the correct approach involves right-clicking on the chart, selecting the format data labels option, and then choosing the desired settings. This method allows for detailed customization of the labels, giving you control over not just whether they appear, but also how they are presented. You can specify various attributes such as position, number format, and which data points to label, enabling a tailored and informative display of information.

Using the format data labels function is essential because it opens a menu where options can be selected based on the specific needs of the chart. This level of customization is crucial for clarity and accuracy in data presentation, ensuring that your labels provide meaningful context to the viewer.

Other choices might not provide the same level of customization. For instance, simply clicking "Add Labels" may not present more nuanced options for configuration. Right-clicking and selecting "Insert Data Labels" might insert default labels that are less informative or visually clear compared to tailored options. Lastly, using the Data tab usually does not directly add labels to a chart but involves navigating different features that are less efficient for this particular task.