1.1 Scatter plot

A scatter plot is a diagram that displays the values of two variables for a set of data, one point \((X_i, Y_i)\) for each observation. For the advertising data of Example 1.0.1:

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Figure 1: Scatter plot of sales against advertising.

Scatter plots are used to investigate the possible relationship between the variables. Here the points rise from left to right, roughly along a straight line: more advertising goes with more sales.

A scatter plot should always be drawn before any model is fitted. It shows at a glance whether a straight line is sensible at all, and points that do not fit the pattern.

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