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 scatter diagrams, the variable to be forecasted is typically placed on the y-axis, making option D the correct statement. Option A is incorrect as time can be plotted on either the x- or y-axis depending on the analysis being conducted. Option B is incorrect as scatter diagrams typically depict the relationship between two continuous variables, not three. Option C is incorrect as scatter diagrams are typically used with quantitative data. Option E is incorrect as scatter diagrams can be useful for understanding relationships in time series data.

Which of the Following Statements About Scatter Diagrams Is True