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Correlation

Correlation is a statistical tool that measures the relationship between two variables, indicating whether they move together and the strength of that relationship. It can be positive, negative, or nonexistent, and is often visualized using scatter plots. The Pearson Correlation Coefficient (r) quantifies this relationship, with values ranging from -1 to +1, while emphasizing that correlation does not imply causation.

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0% found this document useful (0 votes)
1 views3 pages

Correlation

Correlation is a statistical tool that measures the relationship between two variables, indicating whether they move together and the strength of that relationship. It can be positive, negative, or nonexistent, and is often visualized using scatter plots. The Pearson Correlation Coefficient (r) quantifies this relationship, with values ranging from -1 to +1, while emphasizing that correlation does not imply causation.

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dextergozo087
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Understanding Correlation in Statistics

What is Correlation?

Correlation is a statistical tool used to measure and describe the relationship between two variables. It tells

us if two things are related and how strongly they are related.

Types of Correlation

1. Positive Correlation - Both variables increase together.

Example: As height increases, weight tends to increase.

2. Negative Correlation - One increases, the other decreases.

Example: As number of absences increases, grades decrease.

3. No Correlation - No visible relationship.

Example: Number of pens owned vs. shoe size.

Visualizing Correlation

Correlations are often shown using scatter plots:

- Positive: Dots go upward.

- Negative: Dots go downward.

- None: Dots are scattered randomly.

The Correlation Coefficient (r)

The Pearson Correlation Coefficient (r) is the most common way to measure correlation.

r value | Interpretation

+1 | Perfect positive correlation

0 | No correlation
Understanding Correlation in Statistics

-1 | Perfect negative correlation

Other interpretations:

0.7 to 0.99 = Strong

0.3 to 0.69 = Moderate

0.01 to 0.29 = Weak

Example

Data on hours studied and test scores from 5 students:

Student | Hours Studied (X) | Test Score (Y)

A |2 | 60

B |4 | 70

C |5 | 75

D |6 | 85

E |8 | 90

Calculated r = 0.96 = Very strong positive correlation.

Meaning: More hours studied leads to higher test scores.

When to Use Correlation

- Research (e.g., Smoking and lung problems)

- Business (e.g., Ad spending and sales)

- Education (e.g., Study time vs performance)


Understanding Correlation in Statistics

- Health (e.g., Exercise frequency vs weight)

Important Notes

- Correlation does NOT mean causation.

- Always visualize your data to check for outliers or patterns.

Summary

- Correlation measures how variables move together.

- Values of r tell us the strength and direction.

- Scatter plots help visualize relationships.

- Always interpret correlation with context and caution.

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