What does scatter plot analysis primarily show?

A scatter plot primarily shows the relationship between two quantitative variables by plotting them along a two-dimensional plane, where one variable is represented on the x-axis and the other on the y-axis. This visual representation allows for a straightforward interpretation of how the variables relate to each other, indicating whether an increase in one variable tends to result in an increase or decrease in the other, which is referred to as correlation.

In scatter plots, points that are closely clustered suggest a strong correlation, whereas widely scattered points indicate a weak or no correlation. The direction of the trend (positive, negative, or no correlation) can help in understanding the nature of the relationship. This is valuable across various fields, such as statistics, economics, and business analysis, where understanding relationships between varying factors is crucial.