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Differentiate between correlation and regression. Explain it with suitable example

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Nandu asked over 2 years ago

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Hii --Correlation and regression analysis are related in the sense that both deal with relationships among variables. The correlation coefficient is a measure of linear association between two variables. Values of the correlation coefficient are always between -1 and +1. --Correlation is a statistical technique that can show whether and how strongly pairs of variables are related. For example, height and weight are related; taller people tend to be heavier than shorter people. The relationship isn't perfect. --Correlation quantifies the degree to which two variables are related. Correlation does not fit a line through the data points. You simply are computing a correlation coefficient (r) that tells you how much one variable tends to change when the other one does. When r is 0.0, there is no relationship. When r is positive, there is a trend that one variable goes up as the other one goes up. When r is negative, there is a trend that one variable goes up as the other one goes down. **For example,** a correlation of r = 0.9 suggests a strong, positive association between two variables, whereas a correlation of r = -0.2 suggest a weak, negative association. A correlation close to zero suggests no linear association between two continuous variables. --In statistical modeling, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables (or 'predictors'). --More specifically, regression analysis helps one understand how the typical value of the dependent variable (or 'criterion variable') changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables – that is, the average value of the dependent variable when the independent variables are fixed. Less commonly, the focus is on a quantile, or other location parameter of the conditional distribution of the dependent variable given the independent variables. --In all cases, the estimation target is a function of the independent variables called the regression function. In regression analysis, it is also of interest to characterize the variation of the dependent variable around the regression function which can be described by a probability distribution.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 chandana.G answered over 2 years ago

Correlation and linear regression are not the same. Correlation quantifies the degree to which two variables are related. Correlation does not fit a line through the data points. You simply are computing a correlation coefficient (r) that tells you how much one variable tends to change when the other one does.

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Open uri20170510 32134 ivjxpn?1494421728 Shreedhar Sutar answered over 2 years ago

Hi Nandlal, 1.Correlation examines the relationship between two variables using a standardized unit. However, most applications use raw units as an input whereas Regression examines the relationship between one dependent variables and one or more independent variables. Calculations may us either raw unit values, or standardized units as input. 2.Correlation coefficients indicate the strength of a relationship whereas Regression shows the effect of one unit change in an independent variable on the dependent variable.

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