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| | '''Correlation''' refers to how a characteristic is common to a group, as in the '''correlation''' between hard work and success. The correlation is usually not 100%, as a few people may succeed without hard work, and a few people may fail with hard work. But there is a correlation if typically hard work does result in success, and without hard work there is often a lack of success. | | '''Correlation''' refers to how a characteristic is common to a group, as in the '''correlation''' between hard work and success. The correlation is usually not 100%, as a few people may succeed without hard work, and a few people may fail with hard work. But there is a correlation if typically hard work does result in success, and without hard work there is often a lack of success. |
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| − | == Mathematical definition == | + | == Formal definition == |
| | + | ''This section goes beyond high school math and can be skipped by most readers.'' |
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| | The '''correlation coefficient''', also known as '''Pearson's r''', is a statistical measure of association between two ratio variables. It is defined as: | | The '''correlation coefficient''', also known as '''Pearson's r''', is a statistical measure of association between two ratio variables. It is defined as: |
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| | It is important to note that the correlation coefficient should not be calculated when either of the variables are non-ratio. That is, when they do not vary continuously and have a meaningful zero. As such, correlating a dichotomous variable (e.g. sex) with a ratio variable (e.g. IQ) is inappropriate and will return uninterpretable results. | | It is important to note that the correlation coefficient should not be calculated when either of the variables are non-ratio. That is, when they do not vary continuously and have a meaningful zero. As such, correlating a dichotomous variable (e.g. sex) with a ratio variable (e.g. IQ) is inappropriate and will return uninterpretable results. |
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| − | Additionally, correlation estimates a linear relationship between X and Y. Thus, an increase in variable X is assumed to exert the same influence on Y across all values of X and Y. | + | Additionally, correlation estimates a linear relationship between X and Y. Thus, an increase in variable X is assumed to exert the same influence on Y across all values of X and Y. |
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| | ==Correlation and Causation== | | ==Correlation and Causation== |