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Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Scatter Plots Scatter plots are used for numerical data consisting of paired observations taken from two numerical variables One variable is measured on the vertical axis and the other variable is measured on the horizontal axis Scatter plots are used to examine possible relationships between two numerical variables Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Scatter Plot Example Volume per day Cost per day 23 125 26 140 29 146 33 160 38 167 42 170 50 188 55 195 60 200 Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* A Time Series Plot is used to study patterns in the values of a numeric variable over time The Time Series Plot: Numeric variable is measured on the vertical axis and the time period is measured on the horizontal axis Time Series Plot Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Time Series Plot Example Year Number of Franchises 1996 43 1997 54 1998 60 1999 73 2000 82 2001 95 2002 107 2003 99 2004 95 Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Principles of Excellent Graphs The graph should not distort the data. The graph should not contain unnecessary adornments (sometimes referred to as chart junk). The scale on the vertical axis should begin at zero. All axes should be properly labeled. The graph should contain a title. The simplest possible graph should be used for a given set of data. Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Graphical Errors: Chart Junk 1960: $1.00 1970: $1.60 1980: $3.10 1990: $3.80 Minimum Wage Bad Presentation Minimum Wage 0 2 4 1960 1970 1980 1990 $ ? Good Presentation Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Chap 2-* Graphical Errors: No Relative Basis A’s received by students. A’s received by students. Bad Presentation 0 200 300 FR SO JR SR F
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