Question

Correlation and regression are two sides of the same coin. Explain.

Answer 1

The appearance of the term regression at this point (literally, backward movement) is something of an historical accident. It could just as easily have been called progression. The basic concept is the same we found for correlation, though now it has added into it the visual imagery of movement— essentially, of two things, two variables, moving together. As indicated earlier, correlation and regression are two sides of the same statistical coin. When you measure the linear correlation of two variables, what you are in effect doing is laying out a straight line that best fits the average "together-movement" of these two variables. That line is spoken of as the line of regression, and its utility is not only as a device for helping us to visualize the relationship between the two variables. It can also serve very usefully as a basis for making rational predictions.

Answer 2

Answer:

Correlation and regression are two different aspects of the same statistical coin. When we measure the linear correlation of two variables, what we're in impact doing is laying out an instant line that high-quality suits the average "together-movement" of these two variables.

Step-by-step explanation:

The term correlation is an aggregate of two words 'Co' (together) and the 'relation' among two quantities. Correlation is while it's far located that an alternate in a unit in a single variable is retaliated via way of means of an equivalent alternate in any other variable, i.e., direct or indirect, at the time of examine of two variables. Or else the variables are stated to be uncorrelated while the movement in a single variable does now no longer quantity to any motion in a selected course in any other variable. It is a statistical method that represents the power of the linkage among variable pairs.

Correlation may be both negative or positive. If the 2 variables circulate withinside the equal course, i.e. a growth in a single variable consequences withinside the corresponding growth in any other variable, and vice versa, then the variables are taken into consideration to be definitely correlated. For example, Investment and profit.