Business & Data Analytics

Question 1

What is the difference between linear regression and correlation analysis?

Answer 1

Correlation analysis confirms the relationship and connection between two variables.

Linear regression analysis shows how much one variable affects another and how to predict, estimate, or explain its behavior.

Another way to understand it:

If you can swap X and Y and get the same result, use correlation. If changing them affects your outcome, use regression.

If your analysis aims to answer if there is a relationship between X and Y, use correlation. If you aim to answer how X affects Y or have X predict Y, use regression.