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Statistic Discussion Questions WEEK 6 - Essay Example

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“Error” is said to have occurred when the points deviate from the line. (Princeton University, 2007)
Since it has one dependant and the other…
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Statistic Discussion Questions WEEK 6
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Correlation is a method which helps in measuring the relationship between two variables. It tells us about how one variable will affect the other. Correlation lies between -1 to +1. If it is positive then both the variables are directly related and if it is negative then both the variables are inversely related. It helps in making strategies because it helps in forecasting how the business will be and what decisions need to be taken. (Investopedia, 2009)
Some people think that when two events occur together, then they have cause-and-effect relationship according to which, one variable causes the change in the other. This might cause damage to a company and might lead to massive loss. For example, if a company invests somewhere thinking that the correlation was the cause-and-effect relation, then the company might have to suffer huge losses. (Experiment-Resources, 2008)
The dependant and independent variables are related to one another. It is assumed that for a certain amount of independent variable, there is a normally distributed amount of mean that shows the dependant variable. The equation these terms produce are best approximates and shows the functional relationship between the data ...Download file to see next pagesRead More
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