One and Two Variable Statistics
Two Variable Analysis - Linear Correlation
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Correlation Between Two Variables
Definition: Correlation is the extent to which two variables are related to each other. We will measure correlation in this activity. One of the dangers of finding variables that are highly correlated, is that we assume that the one variable causes the other variable. This is referred to as causation. You will focus more on this discussion in Activity 5, but for now, it is important to be aware: high correlation does not necessarily imply causation.
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Creating a Linear Model for Correlation
To analyse the relationship between two variables, we create a linear model through a process called linear regression. In a linear regression, technology is used to create a line of best fit so that the sum of the squares that are made by all the individual distances each point is from the line of best fit is as small as possible. Consider the demonstration in the following video:
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