Question
Write merits and limitations of scatter diagram method.

Answer

Following are the merits and limitations of scatter diagram method.
  • Merits :
    • This is a simple method to know the nature of the correlation between two variables.
    • Less mathematical knowledge is required as the knowledge of plotting the points is only requirement in this method.
    • It also gives some idea about strength of correlation between two variables.
    • There is no difficulty in judging the nature of correlation even if some pairs of extreme observations are present in the data.
  • Limitations :
    • This method gives nature of correlation and some idea about strength of correlation but it does not give exact degree of relationship between two variables.
    • This method is not useful in bivariate frequency distribution.

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