The reason that economists often use a scatter diagram in their analysis is that:
A) it provides a precise relationship between two variables.
B) it reveals whether there may be an obvious relationship between two variables.
C) it will always plot as a simple linear relationship.
D) it may be plotted with many explanatory variables.

Question

Quizplus · Accepted Answer

Scatter diagrams are used by economists to visually explore and display the potential relationship between two variables. They help in identifying patterns, trends, or any obvious relationship that might exist, but they do not necessarily provide precise relationships or guarantee linear relationships. Scatter diagrams typically involve plotting two variables against each other on a graph, which makes it easier to observe how they might be related.

The Reason That Economists Often Use a Scatter Diagram in Their