Managerial Economics Demand Estimation. Scatter Diagram Regression Analysis.
Scatter Diagrams. Scatter Diagram Page 195 Tool Book WHAT is a scatter diagram? –A picture of the...
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Transcript of Scatter Diagrams. Scatter Diagram Page 195 Tool Book WHAT is a scatter diagram? –A picture of the...
Scatter Diagrams
Scatter Diagram• Page 195 Tool Book• WHAT is a scatter diagram?
– A picture of the correlation between two factors over time.
– The more data - the more reliable – The closer the data resembles a straight
line, the higher the correlation to each other.
– Diagrams may be positive, negative or show no correlation.
Fall Term 8th Grade Math 4th period
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Correlation?Library Use and RC Proficiency
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Correlation?
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Examples of Scatter Diagram
• Patient Age Vs. Recovery Time
Cautions!• There is a maxim in statistics that says,
"Correlation does not imply causality." • In other words, your scatter plot may show that
a relationship exists, but it does not and cannot prove that one variable is causing the other.
• There could be a third factor involved which is causing both, some other systemic cause, or the apparent relationship could just be a fluke.
• Nevertheless, the scatter plot can give you a clue that two things might be related, and if so, how they move together.
