SOAN 2120 Lecture Notes - Lecture 3: Scatter Plot, Statistical Process Control, Spurious Relationship

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The visual tool of this graph is a scatter plot. Allows us to visualize the correlation between the quantitative variables (because it is numerical such as how many years of education and how much is your income) The positive slope implies a positive correlation: graph #2. Negative slope= negative relationship: graph #3. If part of the data but unusual. If you have outliers you have to nd out if they"re real (real person but just an extreme value) If a coding error then you have to gure out if you can keep it or get rid of it. Outliers can change our correlation coef cients dramatically. Size of big toes and income are the quantitative variables. The issue of causality (which variable causes the other variable) How do we know if the relationship is signi cant. There are tools that help us know if the relationship is true. The higher correlation the stronger the relationship (steep and tightly compact slopes)

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