Statistics

Study of data collection, analysis, interpretation, and presentation.

Advanced Topics

Correlation and Regression

Finding Relationships

Sometimes, we want to know if two things are connected. Correlation and regression help us measure and describe these relationships.

Correlation

  • Measures how strongly two variables are related.
  • Values range from -1 (perfect negative) to 1 (perfect positive).

Regression

  • Shows how one variable can predict another.
  • The most common is linear regression, which finds the best line through the data.

Formula for Correlation Coefficient

\[ r = \frac{\sum (x_i - \bar{x})(y_i - \bar{y})}{\sqrt{\sum (x_i - \bar{x})^2 \sum (y_i - \bar{y})^2}} \]

Why It Matters

These tools help us understand connections and predict outcomes in the real world.

Examples

  • Checking if hours of study are related to test scores.

  • Predicting house prices based on the number of bedrooms.

In a Nutshell

Correlation and regression show how variables are connected and help make predictions.