BUSINESS MATHEMATICS & STATISTICS
50
Plotting of Scatter Diagram Example 1: The following data provides in inches the height of fathers and their eledest sons.
Height of fathers Height of their sons
1
2
3
4
5
6
7
8
65
63
67
64
68
70
71
69
67
66
68
65
69
68
70
68
[ Construct a scatter diagram and indicate the nature of correlation. Solution: For scatter diagram, a graph is plotted on a graph paper. Step 1: Height of fathers is plotted on X-axis and height of their sons is plotted on the Y-axis. Step2: various values of heights are plotted by dots as shown in the figure below. Conclusion: The scatter diagram shows that there is positive correlation between heights of fathers and sons, i.e., with increase in the height of fathers, the height of sons also increases. Merits of Scatter Diagram The merits of scatter diagram are: 1. Simple Method: this is a simple and nonmathematical method for studying correlation 2. Easy to Understand: It is easy to understand and easy to interpret. It provides quick idea of correlation between two variables just by a glance on the diagram. 3. First Step: It can be regarded as the firs step in studying relation between two variables. 4. Unifluenced: The results are not influenced by the size of extreme observations. Demerits of Scatter diagram The demerits of scatter diagram are: 1. Scatter diagram gives just an idea about the direction of correlation. It does not establish the exact degree of correlation between two variables. 2. It is just a qualitative method of showing relationship between two variables.
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