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  Concept of Correlation & Regression

Basic Definitions of Correlation & Regression:

Coefficient of Determination: It is the percent of variation which can be described by the regression equation.

Correlation: It is a method which is used to find out if a relationship exists between the variables.

Correlation Coefficient: It is a statistic or parameter that measures the strength and direction of a relationship among two variables.

Dependent Variable: It is a variable in regression or correlation that can’t be controlled, that is, it mainly depends on independent variable.

Independent Variable: It is a variable in regression or correlation that can be controlled, which is, it is independent of other variable.

Pearson Product Moment Correlation Coefficient: It is a measure of strength and direction of the linear relationship among two variables.

Regression: It is a method employed to explain the relationship among two variables.

Regression Line: This can be defined as the best fit line.

Scatter Plot: It is a plot of the data values on coordinate system. The independent variable is graphed all along the x-axis and a dependent variable all along the y-axis.

Standard Error of the Estimate: It is the standard deviation of observed values regarding the predicted values.

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