4.1 Scatter Diagrams
To investigate the relationship between variables, it is helpful to look at a graph of the data. Such a graph is often called a scatter diagram or a scatter plot. Normally, the independent variable is plotted on the horizontal axis and the dependent variable is plotted on the vertical axis. The following example will illustrate this.
Triple A Construction Company renovates old homes in Albany. Over time, the company has found that its dollar volume of renovation work is dependent on the Albany area payroll. The figures for Triple A’s revenues and the amount of money earned by wage earners in Albany for the past 6 years are presented in Table 4.1. Economists have predicted the local ...
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