Scatter Diagram Method:
1. Scatter diagram is a graph of observed plotted points where each point represents the values of X and Y as a coordinate.
2. It portrays the relationship between these two variables graphically.
Advantages of Scatter Diagram method:
1. It is very simple and non- mathematical method
2. It is not influenced by the size of extreme item.
3. It is the first step in resting the relationship between two variables.
Disadvantages of Scatter diagram method:
1. It cannot establish the exact degree of correlation between the variables, but provides direction of correlation and depicts it is high or low.