statistics correlation and regression. warm-up suppose that the average salary for a k-12 teacher in...
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![Page 1: Statistics Correlation and Regression. Warm-up Suppose that the average salary for a K-12 teacher in South Carolina is $40,000. Which of the following](https://reader035.vdocuments.us/reader035/viewer/2022062321/56649e1a5503460f94b07e4d/html5/thumbnails/1.jpg)
Statistics
Correlation and Regression
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Warm-up Suppose that the average salary for a K-12 teacher
in South Carolina is $40,000. Which of the following values would be a reasonable value for the standard deviation?
a) -1,000 b) 0 c) 1,000 d) 5,000 e) 23,000
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Warm-up A personal trainer was interested in studying the effects of different types of diets (liquid diet, prepared meals, and low carb) on total weight loss in two months. Which boxplot has the biggest IQR?
a) Liquid Diet
b) Prepared Meals
c) Low Carb
d) They are the same
e) Cannot be determined
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Objectives
Introduce linear correlation, independent and dependent variables, and the types of correlation
Find a correlation coefficient Distinguish between correlation and causation
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Correlation
Correlation A relationship between two variables. The data can be represented by ordered
pairs (x, y) x is the independent (or explanatory) variable y is the dependent (or response) variable
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Correlation
x 1 2 3 4 5
y – 4 – 2 – 1 0 2
A scatter plot can be used to determine whether a linear (straight line) correlation exists between two variables.
x
2 4
–2
– 4
y
2
6
Example:
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Types of Correlation
x
y
Negative Linear Correlation
x
y
No Correlation
x
y
Positive Linear Correlation
x
y
Nonlinear Correlation
As x increases, y tends to decrease.
As x increases, y tends to increase.
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Example: Constructing a Scatter Plot
A marketing manager conducted a study to determine whether there is a linear relationship between money spent on advertising and company sales. The data are shown in the table. Display the data in a scatter plot and determine whether there appears to be a positive or negative linear correlation or no linear correlation.
Advertisingexpenses,($1000), x
Companysales
($1000), y
2.4 2251.6 1842.0 2202.6 2401.4 1801.6 1842.0 1862.2 215
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Solution: Constructing a Scatter Plot
x
y
Advertising expenses(in thousands of
dollars)
Co
mp
any
sa
les
(in
thou
san
ds
of
dol
lars
)
Appears to be a positive linear correlation. As the advertising expenses increase, the sales tend to increase.
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Example: Constructing a Scatter Plot Using Technology
Old Faithful, located in Yellowstone National Park, is the world’s most famous geyser. The duration (in minutes) of several of Old Faithful’s eruptions and the times (in minutes) until the next eruption are shown in the table. Using a TI-83/84, display the data in a scatter plot. Determine the type of correlation.
Durationx
Time,y
Durationx
Time,y
1.8 56 3.78 79
1.82 58 3.83 85
1.9 62 3.88 80
1.93 56 4.1 89
1.98 57 4.27 90
2.05 57 4.3 89
2.13 60 4.43 89
2.3 57 4.47 86
2.37 61 4.53 89
2.82 73 4.55 86
3.13 76 4.6 92
3.27 77 4.63 91
3.65 77
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Solution: Constructing a Scatter Plot Using Technology
Enter the x-values into list L1 and the y-values into list L2.
Use Stat Plot to construct the scatter plot.STAT > Edit…
STATPLOT
From the scatter plot, it appears that the variables have a positive linear correlation.
1 550
100
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Correlation Coefficient
Correlation coefficient A measure of the strength and the direction of a linear
relationship between two variables. The symbol r represents the sample correlation coefficient. A formula for r is
The population correlation coefficient is represented by ρ (rho). 2 22 2
n xy x yr
n x x n y y
n is the number of data pairs
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Correlation Coefficient
The range of the correlation coefficient is -1 to 1.
-1 0 1
If r = -1 there is a perfect negative
correlation
If r = 1 there is a perfect positive
correlation
If r is close to 0 there is no linear
correlation
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Linear Correlation
Strong negative correlation
Weak positive correlation
Strong positive correlation
Nonlinear Correlation
x
y
x
y
x
y
x
y
r = 0.91 r = 0.88
r = 0.42 r = 0.07
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Calculating a Correlation Coefficient
1. Find the sum of the x-values.
2. Find the sum of the y-values.
3. Multiply each x-value by its corresponding y-value and find the sum.
x
y
xy
In Words In Symbols
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Calculating a Correlation Coefficient
4. Square each x-value and find the sum.
5. Square each y-value and find the sum.
6. Use these five sums to calculate the correlation coefficient.
2x
2y
2 22 2
n xy x yr
n x x n y y
In Words In Symbols
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Example: Finding the Correlation Coefficient
Calculate the correlation coefficient for the advertising expenditures and company sales data. What can you conclude?
Advertisingexpenses,($1000), x
Companysales
($1000), y
2.4 2251.6 1842.0 2202.6 2401.4 1801.6 1842.0 1862.2 215
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Solution: Finding the Correlation Coefficient
x y xy x2 y2
2.4 2251.6 1842.0 2202.6 2401.4 1801.6 1842.0 1862.2 215
540294.4440624252
294.4372473
5.762.56
46.761.962.56
44.84
50,62533,85648,40057,60032,40033,85634,59646,225
Σx = 15.8 Σy = 1634 Σxy = 3289.8 Σx2 = 32.44 Σy2 = 337,558
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Solution: Finding the Correlation Coefficient
2 22 2
n xy x yr
n x x n y y
2 2
8(3289.8) 15.8 1634
8(32.44) 15.8 8(337,558) 1634
501.2 0.91299.88 30,508
Σx = 15.8 Σy = 1634 Σxy = 3289.8 Σx2 = 32.44 Σy2 = 337,558
r ≈ 0.913 suggests a strong positive linear correlation. As the amount spent on advertising increases, the company sales also increase.
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Example: Using Technology to Find a Correlation Coefficient
Use a technology tool to calculate the correlation coefficient for the Old Faithful data. What can you conclude?
Durationx
Time,y
Durationx
Time,y
1.8 56 3.78 79
1.82 58 3.83 85
1.9 62 3.88 80
1.93 56 4.1 89
1.98 57 4.27 90
2.05 57 4.3 89
2.13 60 4.43 89
2.3 57 4.47 86
2.37 61 4.53 89
2.82 73 4.55 86
3.13 76 4.6 92
3.27 77 4.63 91
3.65 77
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Solution: Using Technology to Find a Correlation Coefficient
STAT > CalcTo calculate r, you must first enter the DiagnosticOn command found in the Catalog menu
r ≈ 0.979 suggests a strong positive correlation.
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Interpreting r
Statisticians use the following scale to provide a rough estimate of a relationship’s strength:
r value (+/-) Strength
0 -.19 poor
.2 - .39 fair
.4 - .59 moderate
.6 - .79 good
.8 – 1.0 excellent
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Correlation and Causation
The fact that two variables are strongly correlated does not in itself imply a cause-and-effect relationship between the variables.
If there is a significant correlation between two variables, you should consider the following possibilities.1. Is there a direct cause-and-effect relationship
between the variables? Does x cause y?
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Correlation and Causation
2. Is there a reverse cause-and-effect relationship between the variables?• Does y cause x?
3. Is it possible that the relationship between the variables can be caused by a third variable or by a combination of several other variables?
4. Is it possible that the relationship between two variables may be a coincidence?
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Example – McGwire-Sosa Data
Using the McGwire-Sosa Data, compute the correlation coefficient between batting average (x) and homeruns (y) for both players.
Assess the stregth of the relationship. Do you think batting average is a good predictor of homeruns?
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Summary
Introduced linear correlation, independent and dependent variables and the types of correlation
Found a correlation coefficient Distinguished between correlation and
causation
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Homework
Pg. 469-473, #2-28 even