What is Scatter Diagram, and how is it useful in the study of Correlation?
The esistence of correlation can be shown graphically by means of a scatter diagram Statistical data relating to simultaneous movements (or variations) of two variable S can be graphically represented by points. One of the two variables, say X, is shown along the horizontal axis OX and the other variable Y along the.vertical axis OY. All the pairs of values of X and Y are now shown by points (or dots) on the graph paper. This diagrammatic representation of bivariate data is known as scatter diagram.
The main use of this Method is that it helps in studying the relationship between two variables with the help of a diagram. It is a non mathematical technique. It gives a bird’s eye view of correlation. The greater the scatter of the points on the graph, the lesser is the degree of correlation between the two variables. On the other hand when the scatter points form a straight line, it indicates higher degree of correlation.