PPT - Scatter Diagram B Com Notes | EduRev

Business Mathematics and Statistics

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B Com : PPT - Scatter Diagram B Com Notes | EduRev

 Page 1


1
Scatter Diagram
Page 2


1
Scatter Diagram
2
What is Scatter Diagram?
The scatter diagram graphs pairs of numerical data, with 
one variable on each axis, to look for a relationship 
between them. If the variables are correlated, the points 
will fall along a line or curve. 
Page 3


1
Scatter Diagram
2
What is Scatter Diagram?
The scatter diagram graphs pairs of numerical data, with 
one variable on each axis, to look for a relationship 
between them. If the variables are correlated, the points 
will fall along a line or curve. 
3
• The scatter diagram is used to find the 
correlation between two variables. 
• This diagram shows you how closely the 
two variables are related. 
• After determining the correlation between 
the variables, you can easily predict the 
behavior of the other variable. 
• This chart is very useful when one 
variable is easy to measure and the other 
is not.
Page 4


1
Scatter Diagram
2
What is Scatter Diagram?
The scatter diagram graphs pairs of numerical data, with 
one variable on each axis, to look for a relationship 
between them. If the variables are correlated, the points 
will fall along a line or curve. 
3
• The scatter diagram is used to find the 
correlation between two variables. 
• This diagram shows you how closely the 
two variables are related. 
• After determining the correlation between 
the variables, you can easily predict the 
behavior of the other variable. 
• This chart is very useful when one 
variable is easy to measure and the other 
is not.
4
When to Use a Scatter Diagram?
?When you have paired numerical data.
?When your dependent variable may have multiple values for 
each value of your independent variable.
?When trying to determine whether the two variables are related, 
such as,
• When trying to identify potential root causes of problems.
• When testing for autocorrelation before constructing a control chart.
Page 5


1
Scatter Diagram
2
What is Scatter Diagram?
The scatter diagram graphs pairs of numerical data, with 
one variable on each axis, to look for a relationship 
between them. If the variables are correlated, the points 
will fall along a line or curve. 
3
• The scatter diagram is used to find the 
correlation between two variables. 
• This diagram shows you how closely the 
two variables are related. 
• After determining the correlation between 
the variables, you can easily predict the 
behavior of the other variable. 
• This chart is very useful when one 
variable is easy to measure and the other 
is not.
4
When to Use a Scatter Diagram?
?When you have paired numerical data.
?When your dependent variable may have multiple values for 
each value of your independent variable.
?When trying to determine whether the two variables are related, 
such as,
• When trying to identify potential root causes of problems.
• When testing for autocorrelation before constructing a control chart.
5
Limitations of a Scatter Diagram
The following are a few limitations of a scatter diagram:
• Scatter diagram is unable to give you the exact extent of 
correlation.
• Scatter diagram does not show you the quantitative measure of 
the relationship between the variable. It only shows the 
quantitative expression of the quantitative change.
• This chart does not show you the relationship for more than two 
variables.
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