Correlation

Cards (13)

What values is a correlation between?
-1 and +1
what is the number for a perfect positive and negative correlation? 
-1 is perfect negative
+1 is perfect positive
what is the value is there is no correlation? 
0
what are strong correlations closer to? 
closer to +1 or -1
is -0.5 a strong or weak correlation? 
weak negative correlation
a positive correlation is a …….. relationship between two…..? 
direct, variables
a negative correlation is an ____ relationship between two factors? 
inverse (one goes up, other goes down)
what does it mean if there is no correlation? 
no obvious link between the 2 factors and no pattern is presnt when data plotted on a graph
How will firms try to forecast sales? 
analysing measurable factors such as price, consumer incomes and advertising budgets- these all impact level of sales
correlation- what is a statistical technique used to establish?
whether there is a link between two variables and the strength of the relationship between two sets of variables
e.g is there a link between X factor and sales?
How is a correlation between two sets of data shown graphically? 
scatter diagram or scatter graph
What is another name for a line of best fit?
A regression line
what is used to forcast?
regression line/line of best fit