Merits:

(i) Scatter Diagrams are easy to draw.

(ii) It can be easily understood and interpreted.

(iii) Values of extreme items do not affect this method. Such points are always isolated in diagram.

ADVERTISEMENTS:

Demerits:

(i) These diagrams are unable to measure the precise extent of correlation.

(ii) It is not a quantitative measure of the relationship between the variables. It is only a quantitative expression of the quantitative change.