Statistics › Section L · Linear regression and correlation › Topic L.2

Scatterplots and the correlation coefficient

Does studying raise scores? Does price track quality? Two quantitative variables meet in a scatterplot, and the correlation coefficient r compresses their relationship into one number - direction, strength, and one strict limit: straightness only.

In this topic

  • Two variables meet
  • The correlation coefficient r
  • Reading r's magnitude
  • r is unitless and scale-proof
  • Worked example: computing r by hand
  • Worked example: scale-proof in action
  • Outliers and influential points
  • Correlation is not causation
  • Simpson's paradox: aggregation can flip a pattern
  • Common mistakes to avoid
  • Key takeaways

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