What is a dot plot in finance?

In finance, the Federal Reserve uses a dot plot to signal its expectations of future interest rate changes. In a Fed dot plot, each member of the FOMC is represented by a single dot, but each dot is anonymous. A dot plot visually groups the number of data points in a data set based on the value of each point.

What is a dot graph?

Also known as a dot graph, it is used to depict certain data trends in various fields. This graph is plotted by organizing one group of data set on the horizontal axis, and the other on the vertical axis. The corresponding data points for each pair of data is indicated with a set of dots drawn directed towards the x-axis.

How do you find outliers in a dot plot?

Find outliers. When drawing a dot plot, your statistical software divides the values in your dataset into many intervals called bins. The stacked dots represent the number of observations falling within each bin. When possible, these graphs use one dot for each observation. However, that isn’t possible for larger sample sizes.

How does a dot plot differ from a histogram?

Dot plots may be distinguished from histograms in that dots are not spaced uniformly along the horizontal axis. Although the plot appears to be simple, its computation and the statistical theory underlying it are not simple. The algorithm for computing a dot plot is closely related to kernel density estimation.