7. Scatter Plots and Trend Lines
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Can we draw a trend line? If so, which direction does it point as we move from left to right on the graph?
Type of Correlation: Negative
Scatter Plot:
When analyzing data using a scatter plot, there are three general outcomes for the correlation of the data: positive correlation, negative correlation, or no correlation.
| Observation | Type of Correlation |
|---|---|
| As x increases, y increases. | Positive |
| As x increases, y decreases. | Negative |
| There is no visible pattern. | No |
It looks like there is some kind of correlation. Let's draw a trend line, to help us identify the type of correlation. To do so, we will draw a line that appears to fit the data closely.
As average price increases, numbersold decreases. This indicates a negative correlation between number sold and average price.