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Student query: Correlation and regression analysis

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QUESTIONS:
(a) How does correlation analysis differ from regression analysis?
(b) What does a correlation coefficient reveal?
(c) State the quick rule for a significant correlation and explain its limitations.
(d) What sums are needed to calculate a correlation coefficient?
(e) What are the two ways of testing a correlation coefficient for significance?

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Solution Summary

A neat and step-by-step working is provided with regards to correlation and regression analysis.

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Correlation Analysis Regression Analysis
(a) In correlation analysis, we calculate the correlation coefficient which is a measure of the degree of covariablity between X and Y
(b) Correlation is merely a tool to ascertain the degree of relationship between X and Y. We can not assign cause and effect relationship between X and Y (a) Regression analysis is done to study the ...

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