What is a Dot Plot?

A dot plot is a simple chart where each data point is represented by a dot, making it easy to spot clusters, gaps, and frequency patterns. It’s especially useful for small datasets, as larger ones can become too crowded.

Types of Dot Plots

• Cleveland Dot Plot: Compares categories by positioning dots instead of using bar lengths.

• Wilkinson Dot Plot: Shows every individual value like a histogram but without grouping.

The Fed’s Dot Plot

The Federal Reserve’s dot plot is a tool used by the FOMC to show members’ forecasts for future interest rates. Each dot represents one member’s projection, and clusters suggest likely rate paths. Traders, investors, and policymakers follow it closely as it offers insights into the Fed’s economic outlook.