![]() This means that when the marketing expenses go up then the revenue goes up and if the marketing expenses go down then the revenue goes down. In our example, we see a positive slope in the trendline indicating that the data is positively correlated. Just by looking at the trendline and the data points plotted in the scatter chart, you can get a sense of whether the data is positively correlated, negatively correlated, or not correlated. Scatter chart with a linear trendline (dotted line) Suppose you have a dataset as shown below and you want to create a scatter plot using this data. Revenue) in a scatter chart, we can analyze how strongly or loosely these two variables are connected. When we plot this data (Marketing Expense vs. Scatter charts are used to understand the correlation (relatedness) between two data variables.Ī scatter plot has dots where each dot represents two values (X-axis value and Y-axis value) and based on these values these dots are positioned in the chart.Ī real-life example of this could be the marketing expense and the revenue of a group of companies in a specific industry. What is a Scatter Chart and When To Use It? 3D Scatter Plot in Excel (are best avoided).Different Types of Scatter Plots in Excel.Identifying Clusters using Scatter Chart (Practical Examples).Adding a Trend Line to the Scatter Chart.What is a Scatter Chart and When To Use It?.
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