0i. Scatter plot: Graphical representation of relation between two or more variables.
ii. Covariance: between two random variables is statistical measure of the degree to which two variables move together. Covariance captures how one variable is different form its mean as other variable is different from its mean.
- Positive Covariance indicates that variable tend to move together.
- Negative Covariance indicates that variables tend to move in opposite directions.
iii. Corelation simply tells us strength of relationship between independent & dependent variable. It measures the degree of extent of relation between two variables:
a. Corelation Coefficient: Measure of Strength of relationship between or among variable:
- r=1: Perfect positive relationship.
- 0<r
- r=0: No relationship.
- -1<r
- r=-1: Perfect negative relationship.
Degree of Corelation can be determined by looking at scatter plots:
- If relation is upward: Positive relation
- If relation is Downward: Negative Relation
iv. Outlier: is an extreme value of variable, may be, quite large or small.
v. Regression is analysis of relation between one variable & some other variables assuming a linear relation also referred as least square regression.
