What is a scatter plot: How to read it and method to create it in excel

What is a scatter plot?

Scatter plots also known as scatter charts and scatter diagrams used to show relationships between two variables and the relationship between two variables is called their correlation. It’s a 2-D plot and it plots data points on a horizontal and a vertical axis to show how much one variable is affected by another. In the scatter plot, all data points are represented by dots in the plot.

If the points are close to making a straight line in the plot then it is considered as highly correlated variables. While if they are equally distributed all over the plot then their correlation is weak or zero.

When to use scatter diagram

When we have a pair of numerical data and we are trying to determine if the both variable is related or not.

How to create scatter plot in excel

To create a scatter plot in excel we need to first select our data the go to Insert >> Insert Scatter (X,Y) or Bubble Chart >> Scatter.

What is a scatter plot?
Scatter Chat in Excel

After clicking this option we will get a scatter chart as below.

Scatter Chart in excel
Scatter chart.

In the above chart we see data points of both the variables are spread all over the plot, which means they are not strongly correlated with each other.

There are total five type of scatter plots available in excel these are Scatter, Scatter with smooth Lines and Markers, Scatter with Smooth Line, Scatter with Straight Lines and Markers and Scatter with Straight Lines.

There are advantages and disadvantages as well with scatter plot which is mentioned as below:

1Easy to createNot able to measure precise extent of correlation
2Can be easily understandable and interpretableIt is a quantitative expression of change, not a measure
3Outlier doesn’t affect the chartapplicable for the numerical value only
Advantages and disadvantages of Scatter Plot.

That’s all for now for Scatter plot. Will meet again with some new stuff.

To read Correlation and regression click Here.

To read further on Charts you can refer this Link.

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