This is used when both variables are interval or ratio scale.
Usually the response variable is plotted along the vertical axis and the explanatory variables is plotted along the horizontal axis. It is not always perfectly clear which is the response and which is the explanatory variable. If there is no distinction between the two variables, then it doesn't matter (usually only happens when finding correlation between variables).
Example, look at relationship between calories/serving and fat from the cereal dataset using JMP. [We will create the graph in class at this point.]
What to look for in a scatterplot
One's usual initial suspicion about any outlier is that it is a mistake, e.g. a transcription error. Every effort should be made to trace the data back to its original source and correct the value if possible. If the data value appears to be correct, then you have a bit of a quandry. Do you keep the data point in even though it doesn't follow the trend line, or do you drop the data point because it appears to be anomalous. Fortunately, with computers it is relatively easy to repeat an analysis with and without an outlier - if there is very little difference in the final outcome - don't worry about it.
In some cases, the outliers are the most interesting part of the data. For example, for many years the ozone hole in the Antarctic was missed because the computers were programmed to ignore readings that were so low that 'they must be in error'!
For example, the amount of chocolate consumed in Canada and the number of automobile accidents is positively related, but most people would agree that this is coincidental and driven by population growth.
Sometimes the lurking variable is a 'grouping' variable of sort.
This is often examined by using a different plotting symbol
to distinguish between the values of the third variables.
For example, consider the following plot of the relationship
between salary and years of experience for nurses.
The individual lines show a positive relationship, but the overall pattern when the data are pooled, shows a negative relationship.
We will now demonstrate how to use JMP to give different fibre-groups a different symbol. [From Row menu, use Where to select rows. Then assign those rows using the Rows->Markers menu different symbols.]