The sum of squares of differences of rank
observation (x, y) is 192 and the coeff
of rank correlation is -0.6. Find the number
of observations.
Answers
Answer:
Correlation is one of the widely used statistical concepts. This blog post tries to answer what correlation is, why it is so helpful, what relationship correlation and covariance share and some of ways to calculate correlation.
What is Correlation?
Correlation, statistical technique which determines how one variables moves/changes in relation with the other variable. It gives us the idea about the degree of the relationship of the two variables. It’s a bi-variate analysis measure which describes the association between different variables. In most of the business it’s useful to express one subject in terms of its relationship with others.
For example: Sales might increase if lot of money is spent on product marketing.
Why it is useful?
1. If two variables are closely correlated, then we can predict one variable from the other.
2. Correlation plays a vital role in locating the important variables on which other variables depend.
3. It’s used as the foundation for various modeling techniques.
4. Proper correlation analysis leads to better understanding of data.
5. Correlation contribute towards the understanding of causal relationship(if any).
Explanation: