Académique Documents
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Example:
The local ice cream shop keeps track of how much ice cream they sell versus the noon
temperature on that day. Here are their figures for the last 12 days:
Ice Cream Sales vs Temperature
Temperature C Ice Cream Sales
14.2
$215
16.4
$325
11.9
$185
15.2
$332
18.5
$406
22.1
$522
19.4
$412
25.1
$614
23.4
$544
18.1
$421
22.6
$445
17.2
$408
And here is the same data as a Scatter Plot:
It is now easy to see that warmer weather leads to more sales, but the relationship is not
perfect.
Try to have the line as close as possible to all points, and as many points above the line
as below.
Example:
We can estimate a straight line equation from two points from the graph above
Let's estimate two points on the line near actual values: (12, $180) and (25, $610)
First, find the slope:
y y1 = m(x x1)
y 180 = 33(x 12)
y = 33x 216
Now we can use that equation to interpolate a sales value at 21:
Correlation
When the two sets of data are strongly linked together we say they have a High
Correlation.
The word Correlation is made of Co- (meaning "together"), and Relation
Like this:
Negative Correlation
Correlations can be negative, which means there is a correlation but one value goes down
as the other value increases.
Yearly Birth
Production Rate
per Person
The birth rate tends to be lower in richer countries.
Madagascar
$800 5.70
India
$3,100 2.85
Mexico
$9,600 2.49
Taiwan
$25,300 1.57
Below is a scatter plot for about 100 different countries.
Norway
$40,000 1.78
Country