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Correlation & Regression

What is Correlation & Regression...?

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Permalink Reply by Jayshree Dave on December 28, 2010 at 17:48

Correlation is a measure of association between two variables. The variables are not designated as dependent or independent. The two most popular correlation coefficients are: Spearman's correlation coefficient rho and Pearson's product-moment correlation coefficient.

When calculating a correlation coefficient for ordinal data, select Spearman's technique. For interval or ratio-type data, use Pearson's technique.The value of a correlation coefficient can vary from minus one to plus one. A minus one indicates a perfect negative correlation, while a plus one indicates a perfect positive correlation. A correlation of zero means there is no relationship between the two variables.

regression is used to examine the relationship between one dependent and one independent variable. After performing an analysis, the regression statistics can be used to predict the dependent variable when the independent variable is known. Regression goes beyond correlation by adding prediction capabilities.

People use regression on an intuitive level every day. In business, a well-dressed man is thought to be financially successful. A mother knows that more sugar in her children's diet results in higher energy levels. The ease of waking up in the morning often depends on how late you went to bed the night before. Quantitative regression adds precision by developing a mathematical formula that can be used for predictive purposes.

please catch the link CORRELATION AND REGRESSION

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