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

One tailed test, One Tailed Test It is a test where the alternative hy...

One Tailed Test It is a test where the alternative hypothesis (H 1 :) is only concerned along with one of the tails of the distribution for illustration, to test a business co

Mr F.D, how you divide 100 by 10 and then x by 10

how you divide 100 by 10 and then x by 10

What is the widest piece of sheetrock, A door height is 6 feet and 6 inches...

A door height is 6 feet and 6 inches and 36 inches wide. What is the widest piece of sheetrock that will ?t through the door? Round to the nearest inch. a. 114 in b. 86 in

Complex number, If z=re i ? ,find the value of |e iz | Solution)   z=r(c...

If z=re i ? ,find the value of |e iz | Solution)   z=r(cos1+isin1) |e iz |=|e ir(cos1+isin1) |=|e -rsin1 |=e -rsin1

Ronding off numbers, how to round off numbers to the nearest tens and to th...

how to round off numbers to the nearest tens and to the nearest hundred

Determine the size of the proposed repayments, Five years ago a business bo...

Five years ago a business borrowed $100,000 agreeing to repay the principal and all accumulated interest at 8% pa compounded quarterly, 8 years from the loan date. Two years after

Iit-jee questions, can u tell me a website for iit-jee questions?

can u tell me a website for iit-jee questions?

Precalculus, Find the standard form of the equation of the parabola with a ...

Find the standard form of the equation of the parabola with a vertex at the origin and a focus at (0, -7).

Homomorphism, Let G be a group acting on a set X. The action is called fait...

Let G be a group acting on a set X. The action is called faithful if for any g ≠ 1 ∈ G there exists an x ∈ X such that gx ≠ x. That is, only the identity fi xes everything. Prov

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