The scatter diagram plots the log values of the staffing costs on the y axis, while the log values of the active members in the organization are plotted on the x axis. The resultant diagram shows that there is a highly increasing trend between the staffing costs and the number of active employee in the organization.
This scatter diagram is somewhat different form the one depicted for the values of the active members and the staffing costs. In the previous diagram the trend was increasing with concentration of the plots near the beginning of the two axes. This diagram however focuses ion a relative small range of values and depicts that the plots are highly concentrated in one along a particular flow similar to a line. This makes regression for the plots much more feasible and accurate.
The scatter diagram depicts that the trend of the graph is increasing initially but then becomes steady as the log value of the active members increases. This depicts that the staffing costs increase initially with the growth in the active members but then becomes stable, growing at a steady rate of growth with the increase in the active members indicating the presence of economies of scale.
The correlation coefficient for the two arrays, i.e., the log values of staffing costs and the log values of active members in the organization, is 0.849477 which depicts that the relationship between the two variables is very cohesive which steadies out after the initial commencement of the graph.
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