What does correlation in a scatterplot refer to?

Correlation in a scatterplot specifically refers to a linear association between two variables. When examining a scatterplot, the correlation is observed by the way the data points cluster around a line or a trend. If the points trend upwards as you move from left to right, it indicates a positive correlation; if they trend downwards, it indicates a negative correlation. This relationship illustrates how one variable may change in relation to another, providing insight into their association.

Understanding correlation is essential in statistics, as it helps to identify potential relationships between variables, which can guide further analysis or predictions. A strong correlation implies a consistent relationship, while a weak correlation suggests less reliability in predicting one variable based on the other.