What is Scatter Diagram Correlation? | Definition, Types, and Examples

What is Scatter Diagram Correlation? | Definition, Types, and Examples

A scatter diagram is a graphical representation of the relationship between two variables, X and Y. It is used to examine the direction and strength of the linear relationship between the two variables. The scatter diagram shows whether there is a positive or negative correlation between the variables, as well as how strong the relationship is.

Definition:

A scatter diagram is a graph that plots the values of two variables against each other. Each point on the graph represents a single observation or data point. The X-axis represents the independent variable (the variable being studied), while the Y-axis represents the dependent variable (the variable being predicted).

Types of Scatter Diagrams:

There are several types of scatter diagrams, including:

  1. Simple Scatter Plot: A simple scatter plot shows the relationship between two variables without any additional information.
  2. Scatter Plot with Fitted Line: This type of scatter diagram includes a fitted line that represents the best fit to the data.
  3. Scatter Plot with Regression Equation: This type of scatter diagram includes both a fitted line and the regression equation that describes the relationship between the two variables.

Examples:

  1. User Adoption over Time: A company wants to know how many users will adopt its new product over time. The scatter diagram shows the number of users adopted each quarter, with the X-axis representing the time (in quarters) and the Y-axis representing the number of users.
  2. Basketball Player's Jump Shot Practice and Points Scored: A basketball player wants to know how practicing her jump shot affects her points scored per game. The scatter diagram shows the number of hours she practices her jump shot, with the X-axis representing the practice time and the Y-axis representing the points scored per game.

How to Create a Scatter Diagram in Excel:

To create a scatter diagram in Excel, follow these steps:

  1. Identify the independent and dependent variables.
  2. Rearrange the columns so that the column containing the independent variable data is on the left and the dependent variable is on the right.
  3. Go to the Insert tab and click on Scatter.
  4. Select the scatter diagram with only markers (points).
  5. Add axis titles, including both the variable names and units on the axes.
  6. Add a chart title.

:

A scatter diagram is a powerful tool for visualizing the relationship between two variables. By examining the direction and strength of the linear relationship, you can gain insights into how the independent variable affects the dependent variable. With this knowledge, you can create models that predict future outcomes based on past data.

Attribution:

This article was inspired by "12.2 Scatter Plots" in Introductory Statistics by OpenStax is licensed under a Creative Commons Attribution 4.0 International License.

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