EconStatsCraft › Scatter plot

Scatter plot

The chart for "do these two move together". Turn the fitted line on and it reports the slope and the correlation, which are the two numbers a scatter is usually being read for.

What it needs

The intuition

A scatter plot is the most information-dense chart in common use: two variables, one point per observation, nothing aggregated away. It is the right first look at any pair of continuous variables, and it is the only common chart where the reader can see the things summary statistics hide - clusters, curvature, outliers, and the fact that a correlation of 0.8 can come from several completely different pictures.

When to use it

Before any regression of one variable on another, always. And afterwards, to check the relationship you fitted is the relationship in the data.

Where the estimator comes from

Each observation is a point at (x_i,y_i): position on two aligned scales, which is the single most accurately judged visual encoding. No aggregation happens, so the display shows the joint distribution rather than a summary of it. A fitted line added on top is a MODEL, not data, and the distinction matters - Anscombe's quartet is four datasets with identical means, variances, correlation and regression line, and four completely different scatter plots.

What it assumes

Statistical properties

How to read the output

A worked reading

Anscombe's four datasets share a mean of 9 in x and 7.5 in y, the same variances, a correlation of 0.816 and the same fitted line y = 3 + 0.5x. Plotted, one is a clean linear relationship, one is a perfect parabola, one is a straight line with a single outlier dragging it, and one is a vertical stack of points at a single x with one point far to the right doing all the work. Four identical summary tables, four incompatible stories. This is the entire argument for plotting before modelling, and it takes one chart to make.

Symptom → diagnosis → what to do

If you see thisIt meansDo this
A solid blob in the middleOverplottingReduce opacity, shrink points, or hexbin
Points in a grid patternValues rounded at collectionJitter, and say that you did
A strong line and a low R-squaredA few outliers dominatingCheck the residuals; consider a robust fit
The relationship looking flatAspect ratio, or an axis with an outlier stretching itBank to 45 degrees; check the range
Two visible cloudsA hidden grouping variableColour by the candidate group and see
CurvatureA linear fit is the wrong modelThe scatter is telling you something the correlation cannot

Common mistakes

Where to read this properly

See also

Bubble chart, which adds a third variable as size. Correlation and OLS, the summaries this chart exists to check.

Related Charts

Line chart · Area chart · Bar chart · Stacked bar · Bubble chart · Histogram · Box plot · Pie chart · Heat map · Rebased to 100 · Lorenz curve and Gini

All analyses

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