Scatter Plot Slide

Use this Scatter Plot slide to highlight the relationship or correlation between the two variables. On a Scatter Plot, a data series is plotted as a series of x-y coordinates, each one represented by a single dot. This characteristic makes the Scatter Plot a great tool when working with large volumes of data.

Scatter Plots are particularly good at visualizing the relationship between two sets of data. If there is a high degree of correlation between the x-coordinate of the data set and the y-coordinate of the data set, then the data points on the Scatter Plot will appear to converge (typically on a straight line). In this case, the Scatter Plot demonstrates that one variable is correlated with another. On the other hand, if there is no discernible pattern represented by the points on a Scatter Plot, then it is likely the case that there is no correlation or causation between the two sets of data.

For example, imagine that you are trying to determine whether it makes sense to add free Wi-Fi to a line of coffee boutiques. A Scatter Plot would be a good tool. You could plot the time spent per visit vs. the revenue per visit to see if a correlation emerged. If the data points fell in a straight line then you could assume that the increased time spent per visit as a result of having access to free Wi-Fi would result in higher revenues.

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