🎲
Correlation
★★★☆☆High School
📖Definition
Measures the strength and direction of a linear relationship between two variables. Ranges from -1 to 1.
📐Formulas
r = \frac∑ (xᵢ - \barx)(yᵢ - \bary){√∑(xᵢ - \barx)² ∑(yᵢ - \bary)²}
Pearson correlation coefficient
-1 ≤ r ≤ 1
Correlation coefficient range
✏️Examples
예제 1★★☆☆☆
Interpret r = 0.8.
⚡Applications
Finance
Asset correlations
Social Science
Variable relationship analysis
Medicine
Risk factor analysis
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