Correlation and Regression
CORRELATION is an important statistical concept which refers to association or interrelationship among variables.
The reasons of studying correlation is for one to be capable to establish a relationship, plan and control the inputs as independent variables and the output as dependent variables
In business one may be interested to establish whether there exists a relationship among the
i. Amount of fertilizer applied on a described farm and the resulting harvest
ii. Amount of experience one has and the corresponding performance/presentation
iii. Amount of money spent on advertisement and the expected incomes after sale of the goods or service
There are two methods which measure the degree of correlation among two variables these are denoted by R and r.