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Understanding Correlation Basics

Correlation measures the strength and direction of a linear relationship between two quantitative variables on a scale of -1 to 1, where -1 is a perfect negative correlation, 0 is no correlation, and 1 is a perfect positive correlation. A correlation of 0 can still exist between variables that are related in a non-linear fashion. The closer the correlation is to -1 or 1, the stronger the linear relationship, and outliers can influence the correlation value.

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Ahmad Amer
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41 views1 page

Understanding Correlation Basics

Correlation measures the strength and direction of a linear relationship between two quantitative variables on a scale of -1 to 1, where -1 is a perfect negative correlation, 0 is no correlation, and 1 is a perfect positive correlation. A correlation of 0 can still exist between variables that are related in a non-linear fashion. The closer the correlation is to -1 or 1, the stronger the linear relationship, and outliers can influence the correlation value.

Uploaded by

Ahmad Amer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd

Correlation Properties (NOTE: the symbol for correlation is r)

1. Correlation is unit free. If we changed the final exam scores from


percents to decimals the correlation would remain the same.
2. Correlation, r, is limited to 1 r 1.
3. For a positive association, r > 0; for a negative association r < 0.
4. Correlation, r, measures the linear association between two
quantitative variables.
5. Correlation measures the strength of a linear relationship only. (See the
following Scatterplot for display where the correlation is 0 but the two
variables are obviously related.)
6. The closer r is to 0 the weaker the relationship; the closer to 1 or 1
the stronger the relationship. The sign of the correlation provides
direction only.
7. Correlation can be affected by outliers

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