Introduction to Correlation and Linear Regression Analysis

Manoranjan Pal () and Premananda Bharati ()
Additional contact information
Manoranjan Pal: Indian Statistical Institute, Economic Research Unit
Premananda Bharati: Indian Statistical Institute, Biological Anthropology Unit

Chapter Chapter 1 in Applications of Regression Techniques, 2019, pp 1-18 from Springer

Abstract: Abstract This chapter gives some concepts of correlation and regression analysis. Correlation comes prior to regression analysis. It starts with the concept of simple correlation coefficient; which gives the degree of linear relationship between two variables. One should draw scatter diagram in order to judge whether there exists any linear relation between the two variables. The correlation coefficient is not only invariant under changes of unit of measurements but also unaffected by changes of origin for both variables. The value of the correlation coefficient always lies in-between –1 and +1. As the scatter points move closer to the straight line, it moves to –1 or +1 depending on whether the relation is negative or positive. The straight-line relation between the two variables can be found by Least Squares (LS) method. The goodness of fit of the linear regression can be measured by the square of the simple correlation coefficient. Multiple Linear Regression Model is an extension of Simple Linear Regression Model. In a multiple linear regression model, we have more than two independent variables. The goodness of fit in this case is measured by coefficient of determination which is the square of the multiple correlation coefficient.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-13-9314-3_1

Ordering information: This item can be ordered from
http://www.springer.com/9789811393143

DOI: 10.1007/978-981-13-9314-3_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().