What is the purpose of a scatter diagram?

The purpose of a scatter diagram is to provide a graphical display of the relationship between two quantitative variables. This visual representation allows analysts to observe potential correlations, trends, or patterns that may exist between the variables. By plotting points on a two-dimensional graph where each axis represents one of the quantitative variables, it becomes easier to assess whether an increase in one variable corresponds to an increase or decrease in the other variable, indicating a positive or negative correlation.

When analyzing data relationships, scatter diagrams play a crucial role in identifying how closely the two variables are related and whether any linear or nonlinear relationships exist. This can be particularly useful in fields such as business, where understanding the interaction between variables can inform decision-making and strategy development.

The other choices serve different purposes. For instance, calculating central tendency relates to summarizing data (mean, median, mode), organizing categorical data involves creating systems to classify non-numeric information, and representing frequency distribution visualizes how often data points occur within certain ranges. Each of these functions is important for data analysis but does not capture the primary function of the scatter diagram.