Which of the following statements about scatter diagrams is true?
A) Time is always plotted on the y-axis.
B) It can depict the relationship among three variables simultaneously.
C) It is helpful when forecasting with qualitative data.
D) The variable to be forecasted is placed on the y-axis.
E) It is not a good tool for understanding time-series data.

Question

Quizplus · Accepted Answer

In a scatter diagram, the variable to be forecasted (the dependent variable) is typically placed on the y-axis, while the independent variable is plotted on the x-axis. Time can be plotted on either axis, depending on the nature of the data being analyzed. Scatter diagrams are generally used for analyzing the relationship between two variables, rather than three or more. They are not particularly useful for understanding time-series data, which may be better analyzed using tools such as line charts or time-series plots. Scatter diagrams are particularly helpful when dealing with quantitative data, as they allow analysts to identify patterns and relationships that may not be apparent from the raw data alone.

Which of the Following Statements About Scatter Diagrams Is True