Probability, Statistics and Random Processes

11

Correlation

Prerequisites

Before you start reading this unit, you should:

• Know calculating mean and standard deviation for a given data
• Know some basic ideas of plotting graph and draw inference from a graph

Learning Objectives

After going through this unit, you would be able to:

• Understand the importance and limitations of correlation analysis
• Know the difference between linear and nonlinear correlation, positive and negative and simple, partial, and multiple correlation
• Know how and whether variables are correlated through shatter display
• Calculate correlation coefficient for univariate and bivariate distributions

INTRODUCTION

In the earlier chapters, we have seen variables that are dependent on one another. Now in this chapter let us ...