Quantile Dot Plot

A quantile dot plot represents a probability distribution by taking a uniform sample of quantile values and plotting them in a dot plot. These charts visualize the set of possible outcomes of a random process. Finding probability intervals reduces to counting dots in the display.

Basic features of chart:-

1. Dots or Markers: Represent individual data points
2. Quantiles: Horizontal lines dividing the dataset into equal-sized portions.
3. Density/Count Information: Dots may convey density or count in each quantile.
4. Median Line: Optionally included to indicate the dataset's median.
5. Outliers: Highlighted as individual dot lines beyond a certain quantile range.

Advanced features of chart:-

1. Probability-based Positioning: Data points are placed on the plot according to their probability of occurrence.
2. Left Side: Represents events with lower probabilities.
3. Right Side: Represents events with higher probabilities.
4. Visualizing Likelihood: Provides a visual representation of the likelihood distribution of events in the dataset.
5. Intuitive Interpretation: Users can easily identify and compare the probabilities associated with different data points.
6. User-Friendly and Customizable: The quantile dot plot is designed to be highly user-friendly and customizable, offering an intuitive visual representation of your data.

In which business scenarios this chart should be used, for which business process it's helpfull please write in detail

Scenario: A manufacturing company aims to optimize its supply chain to mitigate potential disruptions. The team wants to assess the probability of disruptions and their impact on product availability.

Application:

The quantile dot plot can visually represent the probability distribution of disruptions, such as delays in raw material shipments, transportation issues, or supplier challenges.
their positions along the horizontal axis represent different quantiles of disruption probability with measure.
Example:

Dots positioned toward the left side of the plot may represent a 10% probability of a minor delay in raw material shipments.
Dots toward the right side may indicate a 90% probability of a major disruption should happen smoothly
Benefit:

The team gains a clear overview of potential disruptions, allowing them to focus on developing contingency plans and strengthening the supply chain in areas with higher probabilities of impact.

Scenario: An investment firm is managing a diverse portfolio of assets and wants to analyze the probability distribution of returns on different investment options.

Application:

The quantile dot plot can illustrate the likelihood of various returns, with dot sizes remaining constant but their positions representing different quantiles of return probabilities.

Customization allows the firm to focus on the probability distribution of returns without emphasizing a particular investment's impact.

Example:

Dots positioned towards the left might represent a 20% or whatever probability of a modest return on a low-risk investment.

Dots on the right could signify a probability of a higher return on a high-risk, high-reward investment.

Benefit:

The investment firm gains insights into the probability distribution of returns across the portfolio, enabling strategic decision-making in asset allocation and risk management.

While dot sizes remain constant, their positions convey the diverse range of potential outcomes, allowing the firm to balance risk and reward effectively.