Power BI - Scatter Plot Chart

Introduction:

Scatter plot charts are a fundamental tool in data visualization that allow us to explore and understand the relationships between two variables. They provide a visual representation of data points plotted on a two-dimensional graph, where each point represents the values of two variables for a particular observation.

Creating a scatter plot involves several essential steps to ensure clear visualization and accurate interpretation of the data. Let’s walk through the process step by step

Select scatter plot from visualtizations pane

Scatter plot

Drag and Drop all required fields and values 

Result:

Explore the formatting option and do the necessary formatting  as per requirement

Limitations and Considerations of Scatter Plots: 

While scatter plots are a powerful tool for visualizing relationships between variables, it is important to be aware of their limitations and potential pitfalls to avoid drawing incorrect or misleading conclusions. Here are some key limitations and considerations to keep in mind when working with scatter plots: 

  • Correlation vs. Causation: Scatter plots can show the strength and direction of the relationship between variables, but they do not establish causation. Just because two variables are correlated does not mean that one variable causes the other. Additional analysis, experimentation, or domain knowledge is required to determine causality. 
  • Outliers and Influential Points: Scatter plots may be sensitive to outliers, which are data points that deviate significantly from the overall pattern. Outliers can distort the correlation and influence the slope of the trendline. It’s important to identify and understand the reasons behind outliers and consider their impact on the interpretation of the relationship. 
  • Overlapping Data Points: When data points overlap in a scatter plot, it can be challenging to determine the density or distribution accurately. Overlapping points may obscure patterns, clusters, or trends, making it difficult to draw reliable conclusions. Employing techniques such as transparency or density estimation can help mitigate this issue. 
  • Non-Linear Relationships: Scatter plots are well-suited for visualizing linear relationships, but they may not be effective for detecting non-linear relationships. If the relationship between variables follows a non-linear pattern, additional techniques or transformations might be necessary to capture the underlying relationship accurately. 
  • Sample Size and Representation: The sample size and representativeness of the data used to create a scatter plot are crucial considerations. A small sample size or a biased sample may not provide a comprehensive representation of the population, potentially leading to erroneous conclusions or limited generalizability. 
  • Overgeneralizing Conclusions: It is important to avoid overgeneralizing conclusions based solely on the observations in a scatter plot. Scatter plots provide a snapshot of the data, but they may not capture the full complexity of the relationship. Further statistical analysis and validation are often required to make robust and reliable conclusions. 
  • Confounding Variables: Scatter plots only represent the relationship between the variables being plotted, without considering other factors that might influence the relationship. Confounding variables, which are not accounted for in the plot, can introduce bias and affect the interpretation of the relationship. 
  • Context and Domain Knowledge: Interpreting scatter plots requires contextual understanding and domain knowledge. The variables being plotted may have nuanced meanings or dependencies that need to be considered for accurate interpretation. A deep understanding of the subject matter and the variables involved is essential for drawing meaningful insights. 

By being aware of these limitations and considerations, you can approach scatter plots with a critical mindset, supplement them with additional analysis when necessary, and avoid potential pitfalls that may lead to misleading or incorrect interpretations.