Correlation and regression, Mathematics

Correlation and Regression

Correlation

CORRELATION is an important statistical concept which refers to association or interrelationship among variables.

The reasons of studying correlation is for one to be capable to establish a relationship, plan and control the inputs as independent variables and the output as dependent variables

In business one may be interested to establish whether there exists a relationship among the

i. Amount of fertilizer applied on a described farm and the resulting harvest

ii. Amount of experience one has and the corresponding performance/presentation

iii. Amount of money spent on advertisement and the expected incomes after sale of the goods or service

There are two methods which measure the degree of correlation among two variables these are denoted by R and r.

(a) Coefficient of correlation denoted by r, this gives a measure of the strength of association among two variables one the dependent variable the other the independent variable r can range between -1 and +1 for perfect positive correlation and perfect negative correlation respectively along with zero indicating no relation that is for perfect positive correlation y increase linearly along with x increment.

(b) Rank correlation coefficient denoted by R is utilized to measure association among two sets of ranked or ordered data.  R can also vary from +1, perfect positive rank correlation and -1 perfect negative rank correlation whereas O or any type of number near zero representing no correlation.

Posted Date: 2/15/2013 7:33:47 AM | Location : United States







Related Discussions:- Correlation and regression, Assignment Help, Ask Question on Correlation and regression, Get Answer, Expert's Help, Correlation and regression Discussions

Write discussion on Correlation and regression
Your posts are moderated
Related Questions


a data set has a mean of 3, a median of4, and a mode of 5, which number must be in the data set 3,4,or5

Unit Vector and Zero Vectors Unit Vector Any vector along with magnitude of 1, that is || u → || = 1, is called a unit vector. Zero Vectors The vector w → = (

HOW DO YOU DO BAR DIAGRAMS ANDESTIMATE IT WITH PERCENTS


It is totally possible that a or b could be zero and thus in 16 i the real part is zero.  While the real part is zero we frequently will call the complex numbers a purely imaginar


A local pizza shop sells large pies for $7 each. If the cost of the order is proportional to the number of pizzas would they charge a delivery charge per pizza or per order ?