Applications of Correlation and Regression
Before delving into their practical applications, it’s important to understand the significance of correlation and regression analysis. These statistical methods allow us to quantify relationships between variables and make predictions based on observed data. Correlation measures the strength and direction of association between two variables, while regression analysis helps in understanding and predicting the relationship between a dependent variable and one or more independent variables.
Here are some real-life applications of correlation and regression analysis:
- Economics and Finance
- Healthcare and Medicine
- Social Sciences
- Engineering and Technology
- Environmental Science
Real-Life Applications of Correlation and Regression
Correlation and regression analysis represent useful discrimination and classification tools in statistics which find applications in different fields and disciplines. Correlation serves to detect interrelationships among the different variables and unravels the unseen patterns which might be otherwise hidden. From economics, to psychology, and public health, knowing correlation ensures that decisions are based on evidence and predictions are informed as well.
In this article , we’ll look into Real-life applications of correlation and regression.