It is also known as a dispersion graph, point graph, X-Y graph, dispersion graph or dispersion diagram.

Scatterplots utilize a collection of points positioned using Cartesian coordinates in order to display the values of two variables. By viewing a variable in each axis, it is possible to detect whether there is a relationship or correlation between the two variables.

Different types of correlation may be interpreted through the diagrams displayed on the Scatterplots. These are positive (values increase together), negative (one value decreases as the other increases), null (no correlation), linear, exponential and U-shaped. Correlation strength can be determined by how close the points are to each other on the graph. The points that end far outside the general set of points are known as outliers.

Rows or curves are inserted within the graph to facilitate analysis and are drawn as close as possible to all points and to show how all points have been condensed into a single line. The line is typically known as the best fit line or a trend line and can be used to make estimates by interpolation.

The scatterplots are ideal when you have coupled numerical data and want to see if one variable has an impact on the other. Remember, however, that correlation is not a causality and that another unnoticed variable can affect the results.