Merits and Demerits of Scatter Diagram

Merits

  • It is easy to plot even by a beginner.
  • It is very easy and simple to understand even by a single glance.
  • Abnormal values in a sample can be easily detected.
  • We can find the value of some dependent variables if unknown.
  • Values of extreme terms do not effect when correlation is calculated by this method.

Demerits

  • This method depicts only if relation is positive or negative or no relation. But degree of correlation can't be predicted.
  • No mathematical or Algebraic Treatment is possible to the result.
  • The method is useful only when number of terms is small i.e. it can't be applied to 3-4 terms.
  • The method is also useless when number of terms is very big i.e. in hundreds.