1512125, 3:22 PM Correlation and Regression | GesksforGeeks Search... Correlation and Regression Last Updated : 26 Aug, 2024 Correlation and regression are essential statistical tools used to analyze the relationship between variables. Correlation measures the strength and direction of a linear relationship between two variables, indicating how one variable changes in response to another. Regression, on the other hand, goes a step further by not only measuring this relationship but also predicting the value of a dependent variable based on one or more independent variables. In this article, will discuss correlation and regression in more details, particularly, the significance, uses, and distinctions between them. We aim to deliver a simple and concise necessitate that may be read by students and professionals with no prior knowledge of mathematics and must not overload them with profuse data and difficult terminologies. Table of Content « What is Correlation? © Types of Correlation Coefficients What is Regression? © Types of Regression Correlation and Regression Formula * Differences Between Correlation and Regression Solved Problems on Correlation and Regression FAQs What is Correlation? tps: geekstorgecks orgicorelaion-and-regression ans225,922 Comeaton and Regression | GaksforGeis Correlation quantifies how strong and in which direction the two variables are related. It is being measured using the correlation coefficient which goes to the extent of negative one and positive one. * Positive Correlation: In this case, if the value of one of them goes up, then the value of the other one also goes up. * Negative Correlation: That is, when one variable is high, the other is low and vice versa. * No Correlation: Not statistically significantly correlated: partners, financial wealth, and life satisfaction. Types of Correlation Coefficients Some of the common correlation coefficients are: * Pearson Correlation Coefficient: Calculates the form of a straight line ‘that describes the direction of the relationship between two variables that are both of the interval or ratio scale. * Spearman's Rank Correlation: Used to establish the level of connection between two variables that have been ranked. * Kendall's Tau: Measures the extent to which one variable is ranked relative to another. What is Regression? Regression analysis can be defined as a statistical tool that is applied in an endeavor to identify the relationship between a dependent variable and one or many independent variables. Of benefit when trying to forecast the position of the dependent variable, given the position of independent variables. Types of Regression Common types of regression are: ntps:www geekstorgecks orgicorelaion-and-regression 231912/25, 2:22 PM Correlation and Reg ion | GeckforGeots + Simple Linear Regression: Looks at two variables and tries to find out if one makes some contribution on the other through putting in place a linear equation. * Multiple Linear Regression: Looks at the effect of more than one independent variable on one dependent variable. * Logistic Regression: Applied where the dependent variable is qualitative. * Polynomial Regression: Plans the connection between the dependent variable and the independent variable by an nth-degree polynomial. Correlation and Regression Formula Formulas related to Correlation and Regression are: Correlation Formula: The Pearson correlation coefficient (r) is calculated using the formula Simple Linear Regression Formula: The regression line is represented as: Y=a+bX Where: Y is the dependent variable, X is the independent variable, ais the intercept, bis the slope. Differences Between Correlation and Regression Some of the common differences between correlation and regression are: ritps www. geeksforgeeks.orglcortelaton-and-egression! 33512125, 3:22 PM Correlation and Regression | GesksforGeeks Feature Correlation Purpose Measures the strength and direction of the linear relationship between two variables. Directionality Does not assume a causal relationship; measures association. Coefficient Correlation coefficient (r) ranges from -1 to 1 Equation No equation involved. Prediction Does not predict values. Types Pearson, Spearman, Kendall. oaritu Number System and Arithmetic Algebra Set Theory re.ationsnips (in rearson correlation). ntps:www geekstorgecks orgicorelaion-and-regression Probability Regression Models the relationship between a dependent variable and one or more independent variables. Implies a directional relationship from independent to dependent variable. Regression coefficients (slope and intercept) describe the relationship. Provides an equation (e.g., Y=a+bX in simple linear regression). Used to predict the value of the dependent variable based on independent variables, Simple linear, multiple linear, logistic, polynomial. Statistics Geome (depending on the type of regression). ans192/25, 2:22PM Correlation and Reg ssion | GesksforGeeks Feature Correlation Regression Data Requires two continuous Requires one dependent and Requirement variables (for Pearson one or more independent correlation). variables. Solved Problems on Correlation and Regression Problem 1: Given two variables, X and Y, calculate the Pearson correlation coefficient. * X:[1, 2,3, 4,5] + Y: (2,4, 6, 8, 10] Solution: Calculating the mean of X and Y: * Mean of X (\bar{X}) = 3 * Mean of Y (\bar{Y}) = 6 Calculating the Pearson correlation coefficient: (1-3)(2-0)42-3)(4-6)+(3-3)(6-6) + (4-99(8-6) 4(5~8)(10-6) VO 2-37+8-9HES OEP Heo SO) HOOP 121041021204 0 2020 VR orale r0raTT8 — Vioea0 Yao ~ 2 So, the Pearson correlation coefficient (r= 1), indicating a perfect positive linear relationship between X and Y. Problem 2: Calculate the Spearman's rank correlation coefficient for the following data: * X:[10, 20, 30, 40, 50) * Y: [30, 40, 10, 20, 50] Solution: ritps www. geeksforgeeks.orglcortelaton-and-egression! 5131512125, 3:22 PM Correlation and Regression | GesksforGeeks 1. Rank the data points in X and Y: * Ranks of X: [1, 2, 3, 4, 5] + Ranks of ¥: (3, 4, 1, 2, 5] 2. Calculate the difference between ranks (d;)): Differences (d): [2, 2, -2, -2, O] 3. Calculate the square of differences (d3)): Squared differences (d*): [4, 4, 4, 4, O] 4. Sum the squared differences: Vidi =444444440=16 5. Use the Spearman's rank correlation formula: r,=1- S54 ey Here, n=5: 615 51) 1-0.8=02 96 Ia0 = So, the Spearman's rank correlation coefficient n = 5 , indicating a weak positive rank correlation between X and Y. Problem 3: Given data points, predict the value of Y for X = 6 using the equation ¥ =a + 5X. * Data points: (1, 2), (2, 4), (3, 6), (4, 8), (5, 10) Solution: Calculate the slope (b) and intercept (a): EVxX-2)(¥-¥) é LIE X=3, ¥=6 =a a fp — PAR +(2-a)(4-0)4(8-2)(6-0)+(4—9)8-0)4(5-9)000-6) _ 20 _ 9 Uae 10 a=Y-bX =6-2-3=0 Equation: Y = 0 + 2X For X = 6: ntps:www geekstorgecks orgicorelaion-and-regression ens1512125, 3:22 PM Correlation and Regression | GesksforGeeks Y=2x6=12 So, the predicted value of Y for X = 6 is 12. Problem 4: Given the following data, predict the value of Y for X; = 3 and X2= 4: Data: + (1, Xp ¥) * (12,3) * (2,3, 4) * (3, 4,5) * (4,5, 6) * (5,6,7) Solution: The multiple linear regression equation is. Using a statistical software or calculation tool (e. determine: Excel, RJ, we can © by=1 © b2=0 *a=l So, the equation becomes: Y=1+1X,+0X> For Xj = 3 and Xz = 4: Y=1+1x3+0x4=1+3=4 So, the predicted value of Y for X; = 3 and X2= 4 is 4. Problem 5: Given the following data, determine the probability of Y being 1 for X = 4: Data: ° (XY) ntps:www geekstorgecks orgicorelaion-and-regression m372725, 3:22 PM Corelaton and Regression | GeeksforGeeks * (1,0) * (2,0) ° (3,1) * (4,1) (5,1) Solution: The logistic regression model is: log (%) =a+6Xx Using a statistical software or calculation tool, we can determine: So, the equation becomes: log (%) 3411X For X = 4: log (385) -3411x4=14 Solving for p: Ba elt Tee 4.055 pe hii, = 0.802 So, the probability of Y being 1 for X = 4 is approximately 0.802, or 80.2%. Conclusion Correlation and regression are powerful tools for understanding and predicting relationships between variables. While correlation helps us understand the direction and strength of a relationship, regression allows us to model and make predictions based on that relationship. By applying these techniques correctly and understanding their assumptions, you can unlock valuable insights from your data. ntps:www geekstorgecks orgicorelaion-and-regression ans1512125, 3:22 PM Correlation and Regression | GesksforGeeks Read More, inear Regression Formula * Correlation Coefficient Formula conent | [sori [srs wthus Next Article Multiplication Worksheets Si ilar Reads Correlation: Meaning, Significance, Types and Degree of Correlation The previous statistical approaches (such as central tendency and dispersion) are limited to analysing a single variable or statistical analysis... 15+ min read Real-Life Applications of Correlation and Regression Correlation and regression analysis represent useful discrimination and classification tools in statistics which find applications in different fields and... 15+ min read Covariance and Correlation Covariance and correlation are the two key concepts in Statistics that help us analyze the relationship between two variables. 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