Correlation and regression, Mathematics

Assignment Help:

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.


Related Discussions:- Correlation and regression

Properties of triangle, in a rhomus ABCD the circum radii of triangles ABD ...

in a rhomus ABCD the circum radii of triangles ABD and ACD are 12.5 cm and 25cm respetively then find the area of rhombus.

Sequencing model, theory about solving sequencing problem using graphical m...

theory about solving sequencing problem using graphical method

General rule - probability rule, GENERAL RULE A general rule is to sub...

GENERAL RULE A general rule is to subtract the probabilities with an even number of components inside the parentheses and add those with an odd number of components (one or th

Parallel and perpendicular lines, The last topic that we have to discuss in...

The last topic that we have to discuss in this section is that of parallel & perpendicular lines. Following is a sketch of parallel and perpendicular lines. Suppose that th

Application of probability in business, Application of Probability in Busin...

Application of Probability in Business 1. Business games of chance for illustration, Raffles Lotteries. 2. Insurance firms: this is generally done when a new client or prop

The sum of the clock, how many times In a 12 hour period will he numbers ad...

how many times In a 12 hour period will he numbers add up to 6? (hint 3:00 is one answer0

Quadratic equation, If roots of (x-p)(x-q) = c are a and b what will be th...

If roots of (x-p)(x-q) = c are a and b what will be the roots of (x-a)(x-b) = -c please explain. Solution)  (x-p)(x-q)=c x2-(p+q)x-c=0 hence,   a+b=p+q  and    a.b=pq-c

Logarithms, how do they solve log9 = ... 27

how do they solve log9 = ... 27

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd