BMGT 230 Lecture Notes - Categorical Variable, Scatter Plot, Dependent And Independent Variables

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 230
• Professor: Kazim Ruhi

Document Summary

The sign of the correlation tells us the direction of the association. (cid:1) The magnitude of the correlation tells us of the strength of a linear association. x: explanatory variable y: response variable. Scatterplot, plots one quantitative variable against another ideal way to picture associations between two quantitative variables. Form a. b. c. linear, i. e. straight non-linear. Strength: how much scatter? a. can be seen by how much variation, or scatter, there is around the main form. The idea is we need to use explanatory variable to predict the response variable. if [y] can be predicted accurately, the relationship is strong, if not, the relationship is weak. The ratio of the sum of the product zxzy for every point in the scatterplot to n 1is called the correlation coef cient. Correlation measures the strength of the linear association between two quantitative variables.