What is scatter diagram? What is the limitation of scatter diagram as a method of estimating correlation?

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Solution

A scatter diagram is a graphic method of measuring the correlation between the two variables. It does not give us the degree of correlation between two variables. It simply indicates the direction of correlation.

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Similar questions

Of the following three measures which can measure any type of relationship?

(a) Karl Pearson's coefficient of correlation

(b)Spearman's rank correlation

X	8	16	24	31	42	50
Y	70	58	50	32	26	12

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