A visual inspection of a scatter diagram may be used to identify the approximate relation between past cost and volume.

Question

Quizplus · Accepted Answer

Scatter diagrams are commonly used to identify the relationship between two variables, such as cost and volume. A visual inspection of the scatter diagram can give an indication of the nature and direction of the relationship between the two variables. For example, if the points on the scatter diagram form a roughly linear pattern, this may suggest a strong positive relationship between cost and volume. Alternatively, if the points form a curved or non-linear pattern, this may suggest a more complex relationship between the two variables. However, it is important to note that a visual inspection alone may not provide a precise or quantitative measure of the relationship between cost and volume, and more rigorous statistical techniques may be required to confirm the nature and strength of the relationship.

A Visual Inspection of a Scatter Diagram May Be Used