Workshop 3 - Correlation and Causation Flashcards
Correlation
Mr Pearson invented a standardized number to assess the strength of a linear relationship called correlation coefficient.
Strong correlation between variables
Value of 1 - maximum strength
No correlation between variables
0 indicates no linear relation
Scatterplot
To see the relation between two variables on interval/ratio level
Creating a scatter plot
- Create a graph with 2 axes
- Place the variables on either the x-axis or the y-axis.
- Place a dot where the value crosses
- Repeat this for all values
Cross tabulations
You put the frequency of each combination where the row and column cross. Only for variables at nominal or ordinal level
Correlation vs. Causation
If two variables are correlated this means that a change in one variable will lead to a change in the other variable.
Whether the one variable is the cause of the change in the other variable cannot be concluded based on a correlation.