Ch4 - Correlation Flashcards
Bivariate Data
Data which has pairs of values for two variables
Correlation
Describes nature of the linear relationship between two variables.
When two variables are correlated:
- Consider the context of the question
- Use common sense to determine whether they have a casual relationship.
Regression line of y on x
y = a + bx
Coefficient b tells you the change in y for each unit change in x.
- Data positively correlated, b will be positive
- Data negatively correlated, b will be negative.
When should you use the regression line?
To make predictions for values of the dependent variable that are within the range of the given data.
What does X-axis show?
Explanatory variable
What does Y-axis show?
Response variable
When do two variables have a casual relationship?
If a change in one variable causes a change in the other. Just because two variables show correlation does not necessarily mean casual relationship.
Least Squares Regression line
Straight line that minimises the sum of the squares of the distances of each point from the line
Positive Correlation
One increases, other also increases.
Negative Correlation
One increases, another decreases.