One common goal of performing business data analysis is to discover relationships between values. If you've collected that data, you can summarize it visually using what's called an XY Scatter Chart.
- [Instructor] One common goal of performing business data analysis is to discover relationships between values. For example, you might own a store and want to determine whether individuals who come to the store from farther away are more likely to spend money once they get there. If you've collected that data, you can summarize it visually using what's called an XY scatter chart. In this movie, I will show you how to create one. My sample file is the XY scatter workbook, and you can find it in the chapter two folder of the exercise files collection. This workbook contains a single worksheet with two columns of data.
The first column shows the distance that a customer traveled to the store and the second column shows the amount spent on that trip. If you want to create an XY scatter chart to compare these two sets of numerical values, you can do that by clicking any cell within the data range. And then on the insert tab of the ribbon go to the charts group, click the insert scatter XY or bubble chart button, and then select the scatter chart you want.
In this case, I just want a bunch of dots so I will click the first option under scatter and you see that my chart has been created. Along the bottom axis we have the distance traveled and on the vertical or y axis we have the amount that was spent. And you can see that there is a fairly obvious correlation between how far someone travels and how much they spend. And this makes sense. If you take the time to travel to a store where you want to buy items that perhaps you can't get elsewhere, then it makes sense that you would spend more on each trip even though you make fewer trips.
One important thing to note about XY scatter charts is that you have to have a numerical value for each axis. So in this case my distance and my amount spent are both numbers. If you recorded the state or perhaps the city from which your customer had traveled then that would be a different kind of data. You would have categorical data and you could perhaps have columns that would indicate how much customers from each of those cities or states spent. But when you have two numerical values an XY scatter chart is the best way to compare them so you can look for relationships.
- Distinguish between the mean, median, and mode.
- Describe the relationship between variance and standard deviation.
- Identify a nondirectional hypothesis.
- Point out the difference between COVARIANCE.P and COVARIANCE.S.
- Explain correlation.
- Analyze Bayes’ rule.