This document discusses scatter diagrams, which plot the relationship between two variables. Scatter diagrams can show no correlation, moderate correlation, or strong correlation between variables. They are useful when one variable is easy to measure and the other is not, as they help determine the relationship between variables and allow prediction of one based on the other. However, scatter diagrams do not provide an exact measure of correlation or show relationships between more than two variables.
2. INTRODUCTION
• The scatter diagram is known by many names, such as scatter plot,
scatter graph, and correlation chart. This diagram is drawn with two
variables, usually the first variable is independent and the second
variable is dependent on the first variable.
• The scatter diagram is used to find the correlation between these two
variables. This diagram helps you determine how closely the two
variables are related. After determining the correlation between the
variables, you can then predict the behavior of the dependent
variable based on the measure of the independent variable. This
chart is very useful when one variable is easy to measure and the
other is not.
4. TYPES
• According to the type of correlation, scatter diagrams can be divided
into following categories:
• Scatter Diagram with No Correlation
• Scatter Diagram with Moderate Correlation
• Scatter Diagram with Strong Correlation
5. Scatter Diagram with No Correlation
• This type of diagram is also known as “Scatter Diagram with Zero
Degree of Correlation”
• In this type of scatter diagram, data points are spread so randomly
that you cannot draw any line through them.
• In this case you can say that there is no relation between these two
variables.
6.
7. Scatter Diagram with Moderate Correlation
• This type of diagram is also known as “Scatter Diagram with Low
Degree of Correlation”.
• Here, the data points are little closer together and you can feel that
some kind of relation exists between these two variables.
8.
9. Scatter Diagram with Strong Correlation
• This type of diagram is also known as “Scatter Diagram with High
Degree of Correlation”.
• In this diagram, data points are grouped very close to each other such
that you can draw a line by following their pattern.
10.
11. Benefits of a Scatter Diagram
• It shows the relationship between two variables.
• It is the best method to show you a non-linear pattern.
• The range of data flow, i.e. maximum and minimum value, can be
easily determined.
• Observation and reading is straightforward.
• Plotting the diagram is relatively simple.
12. Limitations of a Scatter Diagram
• Scatter diagrams are 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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