Table of contents |
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Introduction |
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Bivariate Data |
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Scatterplots |
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Shape |
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Trend |
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Strength |
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What is correlation? |
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The following scatterplot examples illustrate these concepts.
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Scatter Graphs, Bivariate Data & Correlation
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Example 1: Does the scatter plot appear linear? Strong or weak? Positive or negative?
The data appear to be linear with a strong, positive correlation.
Example 2: Does the scatter plot appear linear? Strong or weak? Positive or negative?
The data appear to be linear with a weak, negative correlation.
Example 3: Does the scatter plot appear linear? Strong or weak? Positive or negative?
The data appear to have no correlation.
To explain the three main types of correlation of the variables in a bivariate data set we have that:
A positive and negative correlation are types of linear correlations, and the strength of them is measured by a value known as the correlation coefficient (ρ):
When the correlation coefficient is negative, the bivariate variables have a negative correlation (one increases while the other decreases). When the correlation coefficient is positive, the bivariate variables have a positive correlation (one increases as the other increases too).
Example: State whether each of the following bivariate data will most likely be positively correlated, negatively correlated or have no correlation:
a) Amount of gas put into a cars gas tank and the distance that car will travel
(i) Notice the first variable for this case is the amount of gas put into a cars gas tank (not the level of gas in the cars tank) versus the distance that the car will travel. For that matter, since a car needs gasoline to run, the car will cover a certain amount of kilometers per each litre of gasoline spent depending on the efficiency of the cars engine. Therefore, the more gasoline is put into the tank, the more distance the car will be able to cover with it, and so, these two variables are positively correlated.
(ii) On the other hand, if the first variable of this question was the level of gas in the cars tank, the situation would be quite different. A car spends gasoline as it runs; therefore, as the driver accumulates more distance traveled, the car is spending more and more gas until a certain point when its tank is emptied. Since one variable is increasing in value while the other one is decreasing, these two variables would be negatively correlated to each other.
b) Amount of cigarettes smoked and your life expectancy
Just as before, one variable is decreasing one other one is increasing in this case since the life expectancy of a person goes down as more cigarettes have been smoked by the person (due to the accumulation of about 7000 different chemicals in your body, some of them carcinogens).
Therefore, these two variables have a negative correlation with each other.
c) The amount of time you spend watching TV and the price of rice in China
The two variables in this case have no relation to each other whatsoever, they produce no effect on one another in any way; therefore, there is no correlation between the amount of time you watch TV and the price of rice in China.
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