Question

PLEASE HELP How can a company use a scatter plot to make future sale decisions

Answer 1

Answer:

From scatter plot companies can predict future sales, and what will happen next. To help with this predictions most companies draw a line through the scattered plot called best-fit line. This line should be close to most of the points on the scattered line. Approximately half the point on the top of the line and half on the bottom.In this case the company will ignore the points tat far away from the line.

Answer 2

Scatter plots are useful to compare two variables to see how they relate to one another (if there is any relationship at all). One example could be comparing the temperature outside versus the sales of ice cream. The general trend is that the warmer it gets, the more sales you'll have. So there's an upward trend. We can also say there's a positive correlation as both variables go up together (or go down together).

Contrast this with negative correlation where one variable goes up and the other goes down (eg: hours spent watching tv versus exam score).

Of course, the ice cream example could be too simple and often overused, so it might be better to use something more specific to the company in question. If you picked a company dealing with health/medicine, then you could look at something like height versus weight and see if there's a correlation going on.