Correlation and regression Flashcards
(24 cards)
A statistical measure of
the strength of the
relationship between
the relative movements
of two variables.
Correlation Coefficient
is a statistical measure of the
strength of a linear relationship between two variables.
correlation coefficient
A correlation coefficient of __
describes a perfect negative,
-1
A coefficient of 1 shows a perfect positive
correlation, or a _______________ .
direct relationship
A correlation coefficient
of 0 means there is _________
no linear relationship.
are used in science and finance
to assess the degree of association between two
variables, factors, or data sets.
Correlation coefficients
measures the strength and direction of a linear
relationship between two variables.
PEARSON COEFFICIENT, OR PEARSON’S R
This was introduced by Karl Pearson (1867-
1936)
Pearson’s product-moment
correlation coefficient
Pearson’s product-moment correlation coefficient was introduced by (who)(year)
Karl Pearson (1867-
1936)
__________ between two
variables is defined as the covariance of the
two variables divided by the product of
their standard deviations
Pearson’s correlation coefficient
Pearson coefficient uses a mathematical
statistics formula to measure how closely the
data points combining the two variables (with
the values of one data series plotted on the xaxis and the corresponding values of the other
series on the y-axis) approximate the line of
best fit.
Pearson coefficient
Pearson coefficient uses a mathematical statistics formula to measure how closely the data points combining the two variables (with the values of one data series plotted on the xaxis and the corresponding values of the other series on the y-axis) approximate the _________
line of best fit.
A correlation coefficient greater than zero indicates a ___________ while a value less than zero signifies a ___________.
- positive relationship
- negative relationship
A value close to zero indicates a _________ between the
two variables being compared.
weak relationship
A _____ or _____, is a key concept in the creation of diversified portfolios that can better withstand portfolio volatility
negative correlation, or inverse correlation
__________ examines the relationship between two variables.
Spearman’s rank correlation
A Spearman rank correlation describes the monotonic relationship between 2 variables. It is (1) useful for nonnormally distributed _________, (2) can be used for __________, and (3) is relatively robust to outliers.
continuous data
ordinal data
___________ coefficient is a statistical measure to show the strength of a relationship between two variables. Ten is the minimum number needed in a sample for the spearman’s rank test to be valid.
Spearman’s rank correlation
___________ is a set of statistical methods used for the estimation of relationships between a dependent variable and one or more independent variables.
Regression analysis
Regression analysis is a set of statistical methods used for the estimation of relationships between a dependent variable and one or more ______
independent variables.
Way of estimating the value of dependent variable from the known value or values of the independent variable or variables
REGRESSION ANALYSIS
Three Regressional analyiss
Linear Rgression
Multiple Linear Regression
Nonlinear Regression
is a statistical method used to model the relationship between a dependent variable and one or more independent (explanatory) variables.
Simple linear regression analysis
