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
John has a choice of using one of two parking garages when he visits downtown: Option1:  $8 an hour for the first two hours, then $2 and hour for each hour more than 2; or Op

prove that cos(a)/1-sin(a)=tan(45+A/2)

By pigeonhole principle, show that if any five numbers from 1 to 8 are chosen, then two of them will add upto 9.    Answer: Let make four groups of two numbers from 1 to 8 like

Q. a(b - c)x^2 + b(c - a)x + c(a - b) = 0 has equal roots then b = ? Ans: Condition that a quadratic equation ax² + bx + c = 0 has equal roots is: Its discriminant, b² - 4ac = 0 A

Infinite Limits : In this section we will see limits whose value is infinity or minus infinity.  The primary thing we have to probably do here is to define just what we mean w

how to determine roman numerals to digits specially when it hundred thousands

Business Applications In this section let's take a look at some applications of derivatives in the business world.  For the most of the part these are actually applications wh

TYPES OF INFINITY : Mostly the students have run across infinity at several points in previous time to a calculus class. Though, when they have dealt along with this, this was jus

A solid is formed by cutting the top off of a cone with a slice parallel to the base, and then cutting a cylindrical hole into the resulting solid. Determine the volume of the holl