If they are widely scattered, a poor correlation can be expected between them. If the points are very close to each other, a fairly good amount of correlation can be expected between the two variables. We can make a Scatter diagram for the data.Ĭorrelation analysis is used to measure the statistical significance of the association(linear relationship) between two variables.Ĭorrelation measures to what extent two (or more) variables are related. Suppose a university wants to know whether any relationship exists between students scores on an entrance examination and that student’s CGPA upon graduation. Scatter diagrams are important for initial exploration of the relationship between two quantitative variables.Įg. X is called an independent variable Y is called the dependent variable Scatter diagram is a graphical method to display the relationship between two variables plotting pairs of bivariate observations (x, y) on the X-Y plane.
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