(Chapter 8, STAT 1040) # Correlation ## Scatter Diagrams A scatter diagram or scatter plot shows the relationship between two variables. One variable is on the X axis, the other on the Y axis. ### Association - Positive association is demonstrated when the dots are trend upward as $x$ increases. - Negative association is demonstrated when the the dots trend downward as $x$ increases. - Strong association is demonstrated when dots are clustered tightly together along a line. - Weak association is demonstrated when dots are not clustered tightly. ## Correlation Correlation is between `-1` and `1`. Correlation near 1 means tight clustering, and correlation near 0 means loose clustering. $r$ is -1 if the points are on a line with negative slope, $r$ is positive 1 if the points are on a line with a positive slope. As $|r|$ gets closer to 1, the line points cluster more tightly around a line. # Terminology | Term | Definition | | -- | -- | | $r$ | Correlation Coefficient | | Linear Correlation | Measures the strength of a line |