Difference between correlation and regression analysis, Applied Statistics

Difference between Correlation and Regression Analysis

1.Degree and Nature  of Relationship: Coefficient of correlation measures   the degree  of covariance  between two variables  whereas  the regression  analysis  tells  about  the nature  of relationship between the variable  so that one may be  able to estimate or predict the value of one variable  on the basis of another.

2. Cause and Effect Relationship: Correlation mearly  acertains the degree of relationship between two variables  and therefore one cannot  say that one variable  is the cause and other is the effect. In regression analysis one variable is taken as dependent variable while the other variable is taken as independent variable .Thus making it possible to study the cause and effect relationship.

3. The value of rx  in the calculation of coefficient of correlation measured the direction and degree of relationship between two variable say x and y. The values of   Ryx   Symmetric , it shows that it is immaterial which  of X   and Y  is dependent variable and which is independent variable. However in the case of regression analysis coefficients i.e.  by xy   are not symmetric i.e.   b xy * byx   and therefore it certainly  makes a difference as to which variable  is dependent and which  one is independent.

4. In case of correlation, there may be nonsense correlation between two variables X and Y which  is due to merely chance and may not have any practical relevance, such as increase in income  and increase of environmental temperature. However there cannot be a nonsense regression. 

5. The value of coefficient of correlation is independent of changes of scale and point of origin. However regression coefficients are independent of changes of origin but not of scale.

6. While pointing out the difference between regression and correlation Werner z .Hirsch rightly stated that. While correlation analysis tests the closeness with which two phenomena co vary, regression analysis measured the nature and extent of the relation, that enabling us to make prediction.

Posted Date: 9/27/2012 6:24:40 AM | Location : United States







Related Discussions:- Difference between correlation and regression analysis, Assignment Help, Ask Question on Difference between correlation and regression analysis, Get Answer, Expert's Help, Difference between correlation and regression analysis Discussions

Write discussion on Difference between correlation and regression analysis
Your posts are moderated
Related Questions
Collect data about the chosen business problem or opportunity at the company. Explain how you obtained a suitable sample of either qualitative or quantitative data. Review data f


Harmonic Mean  The harmonic mean  also called harmonic  average, in the total numbers of items of variable divided by the sum of r reciprocals of the values of the variable. In

Sampling Error  It is the difference between the value of the actual population parameter and the sample statistic. Samples are used to arrive at conclusions regarding the p

For each of the following situations choose the statistical model that you find to be the most appropriate. Justify your choice. a) We are interested in assessing the effects of

Multivariate analysis of variance (MANOVA) is a technique to assess group differences across multiple metric dependent variables simultaneously, based on a set of categorical (non-

DISCUSS THE METHODS OF MEASURING TREND

Melissa Bakery is preparing for the coming thanksgiving festival. The bakery plans to bake and sell its favourite cookies; butter cookies, chocolate cookies and almond cookies. A k


Now, let's look at a different linear combination. Suppose we are interested n comparing the average mean log income for no college education ( 16). 1. Write out the linear com