Correlation and line chart

CFA Level I Quant
#1

image
image1920×1200 112 KB

Question: Why can’t we see the above line chart to give conclusion to CORRELATION between 2 variables?
I read somewhere which states that :" we use the line chart which can give wrong conclusion to correlation between 2 variables, and we should use scatter plot"

#2

Where is this exhibit?

#3

Here is location where this exhibit comes from.
Source: CFA prerequesite curriculum - Quantitative - Module: Organizing, visualizing, and describing data.

#4

Thanks.

I’ll take a look at it when I have a moment.

1 Like
#5

I’ll take a look at it when I have a moment.
blueBriX

#6

My answer is a guess, and hopefully one of the experts like S2000magician or Mikey can weigh in.

In the image you posted, it looks like the solid line is missing a couple of data points (Days 8 and 9) and they’ve drawn a straight line between Days 7 and 10. The dotted line does have data points at Days 8 and 9.
My suspicion would that it’s something to do with that.