6. Correlation
The chapter discusses the concept of correlation, emphasizing its importance in understanding relationships between two variables. It covers various types of relationships, measurement techniques including Pearson’s and Spearman’s correlation, and tools like scatter diagrams. Additionally, it touches on the interpretation and implications of correlation coefficients, highlighting that correlation does not imply causation.
Enroll to start learning
You've not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Sections
Navigate through the learning materials and practice exercises.
What we have learnt
- Correlation analysis studies the relation between two variables.
- Scatter diagrams give a visual presentation of the nature of the relationship between two variables.
- Karl Pearson’s coefficient of correlation r measures numerically only linear relationships between two variables, lying between –1 and 1.
- When the variables cannot be measured precisely, Spearman’s rank correlation can be used to measure the relationship numerically.
- Repeated ranks need correction factors.
- Correlation does not mean causation; it only indicates covariation.
Key Concepts
- -- Correlation
- A statistical measure that describes the degree and direction of relationship between two variables.
- -- Pearson’s Correlation Coefficient
- A measure that calculates the linear correlation between two variables, ranging from -1 to +1.
- -- Spearman’s Rank Correlation
- A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.
- -- Scatter Diagram
- A graphical representation that displays values for two variables for a set of data, allowing the visualization of any correlation.
- -- Measures of Central Tendency
- Statistics that describe the center of a dataset, including the mean, median, and mode.
Additional Learning Materials
Supplementary resources to enhance your learning experience.