What can a scatter graph help identify?

A scatter graph is a valuable tool used in business and data analysis primarily for identifying relationships between two variables. When plotted on a scatter graph, each point represents a pair of values corresponding to the two variables being analyzed. By observing the pattern of these points, one can determine if there is a correlation between the variables — that is, whether a change in one variable is associated with a change in the other.

If the points on the graph form a general upward trend from left to right, this indicates a positive correlation, while a downward trend indicates a negative correlation. If the points are dispersed without any discernible pattern, it suggests there may be little or no correlation. This capability to visualize and interpret relationships between different variables is what makes scatter graphs particularly useful for data-driven decision-making in various business contexts.

The other options do not accurately describe the primary purpose of a scatter graph. It does not calculate the average of a dataset, which is a statistical measure of central tendency. It also does not demonstrate trends in a single variable, as scatter graphs are inherently designed to compare two variables. Lastly, while a scatter graph may hint at potential growth opportunities through identified correlations, it is not its primary function or focus.