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Video: Explanation of Correlation

RippleSoft Statistics Tool: Interactive Explanation of Correlation

Correlation tells how much I can reduce prediction error

The user selects the sample size and population correlation value. The software generates a data set from that population and plots the values. The red bar represents the mean value of Y ± 1 standard deviation. The purple bar represents the predicted value of Y ± 1 standard error of estimate. By dragging the arrow (just below the X-axis) to sweep across the display the user can see two-thirds of the observations (approximately) should be within both the red and purple bars. The degree of correlation is shown by the degree to which the purple bar is shorter than the red bar.


© 2005 - 2008 by Burrton Woodruff. All Rights Reserved. Modified Fri, Dec 21, 2007