CHAPTER 23

CORRELATION AND REGRESSION ANALYSIS

23.1  INTRODUCTION

In this chapter, we will study two (bivariate) or more variables (multi-variate) simultaneously and make an attempt to find the relationship among the variables in quantitative/qualitative form. In reality, we have many such related variables like crop per acre and fertilizer, height and weight, income and expenditure, etc.

This methodology of studying the strength of relationship among the variables is due to Sir Francis Galton and Karl Pearson.

23.2  CORRELATION

It is a statistical measure used to evaluate the strength and the degree of the relationship among the two or more variables. Here the term relationship is used to measure the tendency of the variables to move together. ...

Get Business Mathematics now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.