Correlation
Chapter 12
What is correlation?
Correlation is a statistical term describing the degree to which two
variables move in coordination with one another. If the two variables
move in the same direction, then those variables are said to have a
positive correlation. If they move in opposite directions, then they have
a negative correlation.
Positive and negative correlation
• A positive correlation is a relationship between two variables in
which both variables move in the same direction. A basic example of
positive correlation is height and weight—taller people tend to be
heavier, and vice versa.
• A negative correlation is a relationship between two variables in
which an increase in one variable is associated with a decrease in the
other. A student who has many absences has a decrease in grades.
The more one works, the less free time one has. As one increases in
age, often one's agility decreases. If a car decreases speed, travel time
to a destination increases.
Linear and non-linear correlation
Simple and multiple correlation
Degree of correlation
Methods of estimating correlation
Scattered Diagram
Karl Pearson’s coefficient of correlation
Spearman’s rank correlation coefficient
Learning by doing
Quick recap
Merits and demerits of rank correlation
Importance
of correlation