Correlation analysis is a statistical technique that can show how sets of variables are related. A scatter diagram is often used in correlation analysis; this allows an individual to see the relationship between two data sets visually. Two take things a step further, there is a test that will show the strength in the relationship between two variables, called the correlation coefficient. When there is absolutely no relationship between two variables, this test will yield a zero.
According to authors Lind, Marchal, and Wathen regression analysis is “an equation that will allow us to estimate the value of one variable based on the value of another” (2017, pg. 437). In other words, regression analysis is used to find trends in data. A good example of this would be the relationship between how much you eat compared to how much you weigh. If you tracked all the calories you consumed by eating and burned through exercise and plotted that data compared to your weight over a period of time; you may see a trend. This trend will allow you to make predictions about your weight in the future.
“Those who ignore statistics are condemned to reinvent it. Statistics is the science of learning from experience.”—Bradley Efron (2006). I really like the second part to that quote; it is a great way, to sum up statistics in a few words.
Lind, D. A., Marchal, W. G., & Wathen, S. A. (2017). Statistical techniques in business and economics (17th ed.). Retrieved from http://connect.mheducatio
Aug 15 at 5:24amManage Discussion Entry
There are strengths and weaknesses associated with correlation and regression. For this discussion, begin by reading about correlation and regression in your textbook. Then, keeping these techniques in mind, read the following quotes: Based on the above quotes, along with this week’s assigned readings and Instructor Guidance, discuss the importance of analyzing correlation and regression in research?
There are strengths and weaknesses associated with correlation and regression “Correlation analysis is a group of techniques to measure the relationship between two variables. Regression analysis is developing an equation that will allow us to estimate the value of one variable based on the value of the other (Lind, Marchal, & Wathen, 2017).” An example of correlation analysis is a scatter diagram. I used to work telecommunications years ago as a coder. I have used a scatter diagram with the Human Resources Division during the Voice of the Customer. The scatter diagram was used to plot the reports the customers use or would like to have and base it on an interval scale of what the customers thought the report was strategic and available. Analyzing this information in a scatter diagram provided us the information on what consumers wanted that human resources had available. The results were immediate successes. It’s also enabled human resources the option to provide consumer reports. The customer rankings were eye opening to say the least an unveiled to human resources what the customers would like as far as option that we didn’t have currently. This helped human resources evaluate a new tool to use for data analytics to help with increasing the data availability and to be able to provide reports to customers that we didn’t have access to before. The least square regression line could have been used when the customers had repeated the same report but were placed in different locations on the scatter diagram. When using the least square regression line, it would provide a mean number for the data. “Those who ignore statistics are condemned to reinvent it. Statistics is the science of learning from experience.”—Bradley Efron (2006). I enjoyed this quote as it applies to the reason why human resources used a scatter diagram for the voice of the customer. We need to learn from experience and sometimes it is not our experience but through the experience of others.
Lind, D. A., Marchal, W. G., & Wathen, S. A. (2017). Statistical techniques in business and economics. (17th ed.). Retrieved from http://connect.mheducation.com/class (Links to an external site.)