# Importance Of Scatter Diagram

### Scatter plots aren t one of the most often used visualization type of charts but they have an important role.

Importance of scatter diagram. Properties characteristics and examples 1. This cause analysis tool is considered one of the seven basic quality tools. Scatter plots primary uses are to observe and show relationships between two numeric variables.

Identification of correlational relationships are common with scatter plots. The dots in a scatter plot not only report the values of individual data points but also patterns when the data are taken as a whole. It can be positive negative or no relationship at all.

In this enterprise finance managers assumed that there was a linear relationship a correlation between monthly operating expenses and the number of units their factory processed. The scatter diagram below illustrates a case in point. Scatter diagram there are seven basic project management tools used in project management and one of these seven tools is the scatter diagram.

It is introduced in basic statistics as one studies regression analysis and it is widely applied in different fields such as biology physics finance psychology etc. If the variables are correlated the points will fall along a line or curve. It s a very particular type of diagram that is usually drawn with two variables the first being independent and the second being dependent on the first.

The actual relationship between two variables x and y is shown in the top left diagram. Scatter diagrams are useful to determine the relationship between two variables. It is critically important that a team restrict its interpretation of the scatter diagram to the range of the observations.

This relationship can be between two causes or a cause and an effect etc. The scatter diagram graphs pairs of numerical data with one variable on each axis to look for a relationship between them. The first variable is independent and the second variable depends on the first.

### Scatter Diagram

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