What do scatter diagrams help to confirm?

Prepare for the ISCEA Certified Supply Chain Analyst Test. Utilize flashcards and multiple choice questions with hints and explanations to enhance your study. Gear up for success!

Scatter diagrams are powerful tools in data visualization that help to confirm the relationship between two numerical variables. By plotting data points on a graph, where one variable is represented on the x-axis and the other on the y-axis, the scatter diagram allows analysts to visually assess the correlation between the two variables.

If the points cluster along a line, this indicates a strong relationship, which can be positive, negative, or even indicate no correlation at all. The strength and direction of this relationship are crucial in many fields, especially in supply chain management, where understanding how different factors impact one another is essential for making informed decisions. For instance, a scatter diagram could reveal how changes in the amount of raw material used (one variable) might affect production output (the second variable).

The other options address different types of analysis. Trends over time typically require line graphs or time series analyses, while the velocity of inventory turnover and the efficiency of processes would generally involve different metrics and reporting formats that do not specifically utilize scatter diagrams for their primary analysis.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy