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Chapter 2

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**preview**shows page 1. to view the full**4 pages of the document.**MGCR 271 – Business Statistics

Chapter 2: Examining Relationships

Data Analysis for Two or More Variables

The proper analysis depends on whether the variables are categorical or quantitative and on

whether one is an explanatory variable and the other a response variable.

When you have a categorical explanatory variable and a quantitative response variable, tools

can compare distributions of the response for the different categories of explanatory variable.

These tools include:

1. Side-by-side boxplots;

2. Stemplots;

3. Histograms (compare medians or means).

If both variables are categorical, there is no satisfactory graph (though bar graphs can help).

Data

Recognize whether each variable is quantitative or categorical.

Identify the explanatory and response variables in situations where one variable explains or

inﬂuences another.

Scatterplots

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