Figure 2-5 A Scatter Diagram of Household Income and Saving in
2019
Another way data can be presented is in a scatter diagram. It is
designed to show the relation between two different variables. To plot a
scatter diagram, values of one variable are measured on the horizontal
axis and values of the second variable are measured on the vertical axis.
Any point on the diagram relates a specific value of one variable to a
corresponding specific value of the other.
The data plotted on a scatter diagram may be either cross-sectional data
or time-series data. An example of the former is shown in Figure 2-5
The table in the figure shows hypothetical data for the income and saving
of 10 households during 2019, and these data are plotted on a scatter
diagram. Each point in the figure represents one household, showing its
income and its saving. The positive relation between the two stands out.
The higher the household’s income, the higher its saving tends to be.