A scatter chart is a great way to visualize the relationship between two or more numerical variables. It helps find trends, patterns, clusters, and unusual data points (outliers).

What is a Scatter Chart?

It (also called a scatter diagram or XY chart) shows dots on a graph to represent data points.

• X-Axis: One numerical variable
• Y-Axis: Another numerical variable
• Dots: Each dot is a data point

If you add a third numerical variable, it becomes a bubble chart, where the size of the bubbles adds extra information.

Types of Correlation

 Positive Correlation

As one variable increases, the other variable also increases.

For Example – The graph show that Sale increases, Profit generally increases.

Negative Correlation

As one variable increases, the other decreases.

For Example- – The graph show that Profit is decreasing with increase in Sales.

No Correlation

The variables do not show any relationship.

For Example-  The graph shows no relationship between Sales and Discount.

How to Create a Scatter Chart in Power BI

Creating a scatter chart in Power BI is :
Select the Scatter Chart from the visualization pane.

Drag and drop:

• A numerical field (Sales) to the X-axis
• Another numerical field (Discount) to the Y-axis
• Add a Category field (Product) to the Values

Real-World Use Cases of Scatter Chart

• HR Analytics: Comparing employee experience vs. salary.
• Retail Business: Analyzing foot traffic vs. total sales.
• Financial Analysis: Stock price vs. trading volume correlation.
• Marketing: Ad spend vs. customer acquisition.
• Manufacturing: Defect rate vs. production time.

Best Practices for UsingScatter Chart

• Use trendlines to highlight patterns in the data.
• Avoid overlapping points by enabling jittering (spreading dots slightly).
• Choose the right scale for better readability.
• Use colors & tooltips for better insights.
• Keep your data clean to avoid misleading interpretations.

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