Scatter diagrams, correlation and causal relationship Flashcards
Scatter diagrams
A good choice to represent bivariate data, they show whether two sets of data are related. Two variables are associated when they have a relationship between them.
X and Y axis
The independent (explanatory) variable should be plotted on the x axis whereas the dependent (response) variable should be plotted on the y axis.
Correlation
An association between two variables that shows an increasing or decreasing trend
Positive and negative correlation
Positive correlation is when one variable increases, the other also increases
Negative correlation is when one variable increases, the other decreases
When the points lie on a near straight line, the correlation is linear
Causal relationship
When a change in one variable relates to the change in another variable, there is a causal relationship between them. Correlation does not mean a causal relationship