There are many different uses for charts, but they’re often used in business applications to better make sense of collected data. This can be especially useful when information is collected over a specific period of time. For example, a retail business might use charts to identify which product is performing the best, perhaps depending on the season, and how they can leverage this information for future marketing strategies. With the use of plots, graphs, and charts, people can make sense of information in a way that’s more visually appealing and identify outliers or correlations. In this guide, you’ll learn more about scatter charts and what they’re typically used for when it comes to data.

What is a scatter chart?

A scatter chart, also referred to as a scatter plot, is a type of chart that shows the relationship between two different variables. Thanks to this chart type, users will be able to understand a specific pattern, relationship, or trend that would be nearly impossible to identify through any other form.

It is said that modern-day scatter plots are based on Rene Descartes’ cartesian coordinates system. This was created back in the 17th century, and the plot has since been used in many scientific methods and business models. It’s a great tool for the visualization of a specific set of data. You can simply create a horizontal axis and a vertical axis, assigning a variable to each one. Then, you plot data points based on each parameter. It’s simple and easy to use.

When should you use scatter charts?

When it comes to scatter plots, these are best used to see how one variable affects the other. It’s a great way to identify anomalies as well as seeing a pattern or relationship between variables. For example, a real estate agent might want to understand the relationship between square footage and the sale price of a home. It gives users an idea of how much a specific home might sell for depending on the square footage. Of course, there may be several other factors involved when it comes to resale, but it’s also important to gauge the relationship between these two variables for informational purposes.

What are some of the benefits of using a scatter chart?

There are some great advantages to using a scatter plot. For starters, it is easy to create a scatter plot simply because it’s easy to understand. The information is digestible, and the range of data can be determined through the maximum and minimum values on the scatter plot. It’s important to look at this data in order to understand the entire data set. It shows relationships between variables and can showcase a whole pattern or trend.

Are there any disadvantages to using a scatter chart?

When a scatter plot has too many data points, it can get confusing, and patterns will be difficult to identify. There is such a thing as an over-plotted scatter chart. It’s important that data points are only added when they correlate to the information on the plot to avoid creating a giant blob. Keep in mind that correlation on a scatter plot doesn’t necessarily equate to causation. This means that just because data points are plotted along with other variables, it doesn’t necessarily mean that they caused one another. For example, perhaps a chart might show that tall people own cats, but tallness doesn’t necessarily cause cat ownership.

With this guide, you are now aware of what scatter plots are used for and the purpose they can serve. These charts can be used in business settings in a number of different industries.