Unformatted text preview: In case of correlation, we do not have to think about cause and effect relationship whereas for regression, we do have to think about cause and effect relationship as it predicts Y from X. In correlation, any variable can be Y and X whereas in regression the line predicts Y from X is not same as X from Y. Correlation is rarely appropriate when one variable is something which you experimentally manipulate. And for regression X variable is usually something you experimentally manipulate and Y variable is something you measure. Reference: Lind, Marchal, Wathen. Basic Statistics for Business & Economics, 7 th Ed. McGraw-Hill Irwin. 2011: CH13, Pg 385....
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- Fall '10
- Correlation, Causality, Correlation does not imply causation, Business & Economics, Wathen