Wednesday, April 9, 2014

42. Scatterplot

http://www.stat.yale.edu/Courses/1997-98/101/scatter.htm
A scatterplot plots points to show the relationship between two sets of data, to find a correlation. If the two sets are strongly linked, that means they have a high correlation, and can either be positive or negative. In this example, the size of a diamond in carats and its retail price are observed. We can clearly see that there is a positive correlation between size and price. Because the plots are so close together and line up near perfectly (with little scatter), this is a high positive correlation. Which means that the bigger the size, the more expensive the diamond is.

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