A scatter plot is a basic yet powerful tool to visualize the relationship between two numerical variables. Each point on the chart represents an observation. By plotting one variable on the x-axis and another on the y-axis, the scatter plot reveals patterns such as correlation, clusters, or outliers.
For instance, a business analyst might use a scatter plot to explore the relationship between advertising spend and revenue. If the points trend upwards from left to right, it suggests a positive correlation. If there’s no visible pattern, the variables may be unrelated.
Scatter plots are also valuable for regression analysis and predictive modeling.