Developing a better understanding of the measurement process and measurement uncertainty is one of the main goals of university physics laboratory courses. This study investigated the influence of graphical representation of data on student understanding and interpreting of measurement results. A sample of 101 undergraduate students (48 first year students and 53 third and fifth year students) from the Department of Physics, University of Zagreb were tested with a paper-and-pencil test consisting of eight multiple-choice test items about measurement uncertainties. One version of the test items included graphical representations of the measurement data. About half of the students solved that version of the test while the remaining students solved the same test without graphical representations. The results have shown that the students who had the graphical representation of data scored higher than their colleagues without graphical representation. In the second part of the study, measurements of eye movements were carried out on a sample of thirty undergraduate students from the Department of Physics, University of Zagreb while students were solving the same test on a computer screen. The results revealed that students who had the graphical representation of data spent considerably less time viewing the numerical data than the other group of students. These results indicate that graphical representation may be beneficial for data processing and data comparison. Graphical representation helps with visualization of data and therefore reduces the cognitive load on students while performing measurement data analysis, so students should be encouraged to use it.