Linear Correlation & Regression

Linear Correlation Calculator
Statistics » Linear Regression » Binomial Distribution » Sampling » Statistics and Probability

Understanding Correlation

Linear correlation measures the strength and direction of a linear relationship between two variables. It's quantified by Pearson's correlation coefficient ($r$), which ranges from -1 to +1.

  • $r = +1$: Perfect positive linear relationship.
  • $r = -1$: Perfect negative linear relationship.
  • $r \approx 0$: No significant linear relationship.

The line of best fit (or regression line) is a straight line that best represents the data on a scatter plot. Its equation is typically written as $y = mx + b$.

Important: Correlation does not imply causation! A strong relationship doesn't mean one variable *causes* the other.

Core Formulas

Pearson's Correlation Coefficient ($r$)

$$ r = \frac{n(\sum xy) - (\sum x)(\sum y)}{\sqrt{[n(\sum x^2) - (\sum x)^2][n(\sum y^2) - (\sum y)^2]}} $$

Regression Line ($y = mx + b$)

Slope ($m$):

$$ m = \frac{n(\sum xy) - (\sum x)(\sum y)}{n(\sum x^2) - (\sum x)^2} $$

Y-Intercept ($b$):

$$ b = \bar{y} - m\bar{x} = \frac{\sum y - m(\sum x)}{n} $$

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