Chapter 6: Understand Relationships Using Correlation Analysis


Correlation and Causation

Correlation Matrix

Example: Explore Child Mortality Rate

Scatter Plot and Fit Line

Example: Child Mortality Rate Scatter Plot


Did you know that the amount of daily ice cream sales is related to the temperature of the day? The hotter the temperature, the more ice cream tends to be sold. This is a classic example of two phenomena that are highly correlated with each other and finding such relationships have tremendous value (such as allowing one to better plan for and sell more ice cream) and can be used in a number of business contexts.

In most data analysis, correlation refers to a linear relationship between two variables, where ...

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