Statistic Discussion Questions WEEK 6 Essay Example | Topics and Well Written Essays - 500 words

Statistic Discussion Questions calendar week 6 - Essay Example(Investopedia, 2009)Correlation is a method which helps in measuring the relationship mingled with two variable quantitys. It tells us about how one variable will affect the other. Correlation lies between -1 to +1. If it is validatory then both the variables are directly related and if it is negative then both the variables are inversely related. It helps in making strategies because it helps in forecasting how the business will be and what decisions need to be taken. (Investopedia, 2009) well-nigh people think that when two events occur together, then they have cause-and-effect relationship according to which, one variable causes the change in the other. This might cause damage to a company and might lead to vast loss. For example, if a company invests somewhere thinking that the correlation was the cause-and-effect relation, then the company might have to experience huge losses. (Experiment-Resources, 2008)The de pendant and independent variables are related to one another. It is assumed that for a certain join of independent variable, there is a normally distributed amount of mean that shows the dependant variable. The equation these terms wee are best approximates and shows the functional relationship between the data