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Answer» Merits of scatter diagram are as follows : - Scatter diagram is a simple method to know the nature of correlation between two variables.
- It requires only the knowledge of plotting the points and the mathematical knowledge is required less.
- Up to some extent it gives idea about the strength of correlation between the variable.
- The patterns of the points on a scatter diagram. suggests whether the correlation is linear or not.
- The presence of some pairs of extrem observations does not arise any difficulty in judging the nature of correlation between the variable.
The limitations of scatter diagram are as follows: - It does not give exact degree of correlation between two variables.
- It is not useful method of studying correlation between classified bivariate data.
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