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Scatter Diagram
What is a Scatter Diagram?
A scatter diagram is a graph that shows the relationship between two different sets of data. Also known as a scatter plot, it is a simple and visual way to represent information.
Examples of scatter diagram
Suppose you have two sets of data, which are the number of hours passed studying and the corresponding marks obtained in the exam of a group of students. In a scatter diagram, you will need to plot each student's data point on a graph.
On the graph, one axis will represent the hours spent studying, and the other axis representing the exam marks. Each student's data point will be a dot placed at the intersection of the study hours and the exam marks obtained by the student.
Now, if there is a standard pattern or a trend on the graph, it will suggest that there is a relationship between the two variables. It may be observed that with an increase in hours spent studying the marks go on increasing. This would show a positive correlation between study hours and exam marks.
On the other hand, if there is no specific pattern, and the dots are scattered all over the graph, it suggests that there is no clear relationship between the two variables. This would show little or no correlation between study hours and exam marks.
Interpretation of a Scatter Diagram
Interpreting a scatter diagram requires understanding the relationship between two variables used in the graph and how they relate to each other.
Here are a few key points to consider while interpreting a scatter diagram −
Relationship − The overall pattern of the graph tells about the relationship between the two variables. If there is a line or curve, it shows there is a relationship between the variables. For example, if the dots go up from left to right, it shows a positive relationship, which means that with the increase of one variable, the other variable tends to increase as well. Conversely, if the dots come down from left to right, it reflects a negative relationship, meaning that when one variable increases, the other variable goes down.
Strength − Paying attention to the dots and checking how they cluster around the pattern can also tell about the strength of the relationship between the two variables. When the dots are tightly located around the line or curve, it shows a strong relationship. But, if the dots are spread out and follow no clear pattern, it means there is a weak relationship or no relationship between the two variables.
Outliers − The dots that are significantly far away from the main cluster are called outliers. Outliers show data points that are not in sync with the patterns or are different from the majority. Outliers impact the relationship between the variables and should be examined for their significance.
Correlation − A scatter diagram offers a visual reflection of the correlation between two variables. If there is a clear pattern, it shows a correlation. However, correlation does not imply any causation. That is, just because two variables are correlated, it does not mean that one variable is the reason for the change of the other variable.
Types of Scatter Diagrams
Positive Scatter Diagram − A positive scatter diagram suggests a positive relationship between the two variables. The dots on the graph usually tend to form an upward trend or pattern. Moreover, as one variable goes up, the other variable also tends to increase.
Negative Scatter Diagram − A negative scatter diagram indicates a negative relationship between the two variables. In it, the dots on the graph usually form a downward trend or pattern. As one variable goes up, the other variable tends to come down.
No Correlation Scatter Diagram − In a no correlation scatter diagram, there is no specific pattern among the dots. There is no straightforward relationship between the two variables, which indicates little or no correlation.
Linear Scatter Diagram − A linear scatter diagram has the dots following a straight line on the graph. It shows a linear relationship between the two variables. Any change in one variable leads to a proportional change in the other
Non-linear Scatter Diagram − A non-linear scatter diagram follows a curved pattern. It indicates a non-linear relationship between two variables. The rate of change between the variables is not proportional or constant in non-linear scatter diagrams.
Clustered Scatter Diagram − The dots on the graph of a clustered scatter diagram form distinct groups or clusters. It suggests that the data points belong to subgroups or categories.
How to Create a Scatter Diagram?
Gather your data − The first step is to collect the data of two variables. For example, for examining the relationship between exam marks and study hours, the corresponding values for each student must be gathered.
Determine the variables − The variables that will be plotted on the x-axis and those which will be plotted on the y-axis should be determined based on the nature of the relationship needed to explore.
Set up the graph − Draw a graph using the data labeled for each axis. The axes must be labeled with appropriate titles that suggest the variables being plotted. The units of measurement must be included, if applicable.
Scale the axes − The range and intervals for each axis should be determined based on the values of the data. For example, if the study hours have a range from 0 to 10 and the exam marks have a range from 0 to 100, appropriate scales must be set for each axis accordingly.
Plot the data points − Locating the corresponding value for each data point, on the x-axis and y-axis and marking a dot at that point on the graph is the next step. This should be done for all data points, representing each observation correctly.
Analyze the scatter diagram − The pattern formed by the dots should be analyzed. The trends, clusters, or outliers must be detected and checked. If there is a relationship between the variables, and there is a nature of that relationship (positive, negative, or no correlation) it must be established.
Add any additional information − A title to the scatter diagram can be given to provide more context, you can also include a legend for multiple data sets or categories.
Conclusion
Overall, scatter diagrams are powerful tools for data analysis and visualization. They help in understanding relationships, detecting patterns and outliers, and making informed decisions based on data. That is why they are important for economists.
FAQs
Qns 1. What is a scatter diagram?
Ans. A scatter diagram is a type of graph that helps us understand the relationship between two different sets of data. It is a simple and visual way to represent information.
Qns 2. Mention a few key points to consider when interpreting a scatter diagram. ?
Ans. Some points to consider when interpreting a scatter diagram include relationship, strength, outliers, and correlation of the variables.
Qns 3. How many minimum sets of data are required to draw a scatter diagram?
Ans. To draw a scatter diagram a minimum of two data sets are required.
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