What is the ideal way for a business analyst to represent the correlation between purchases and spending in a customer loyalty dashboard?

The ideal way for a business analyst to represent the correlation between purchases and spending in a customer loyalty dashboard is through the use of a scatter plot that tracks this correlation. Scatter plots are specifically designed to show the relationship between two continuous variables by plotting them along two axes. In this case, one axis would represent the number of purchases made by customers, while the other axis would represent the spending amounts.

This visualization allows the analyst to easily identify patterns, trends, or clusters in the data, which helps in understanding how changes in purchase frequency might affect spending levels. If there is a positive correlation, it will be evident through a trend where points cluster in the upper right direction, while a lack of correlation can be visualized through a more random distribution of points.

Other options, like line charts, pie charts, and bar charts, serve different purposes. Line charts are effective for tracking trends over time but do not specifically depict the correlation between two separate variables in the way that a scatter plot does. Pie charts represent parts of a whole, which is not suitable for analyzing relationships between two different metrics. Bar charts provide a way to compare data categories but again don't effectively show the correlation between simultaneous variables. Therefore, the scatter plot stands out as the best