anova correlation

anova correlation - Data Analysis: Correlation & ANOVA...

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© 2011 Robert H. Smith School of Business University of Maryland Data Analysis: Correlation & ANOVA Professor Whitney Professor Whitney
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© 2011 Robert H. Smith School of Business University of Maryland Correlation Analysis Tests the presence, strength, and direction of a relationship between two variables Is there a relationship between a Toyota 4Runner’s price and its sales level? In other words, does price vary with the 4Runner’s sales level? How strongly is the relationship? What direction is the relationship between price and sales (positive or negative)? Often used as preliminary analysis followed by additional statistical tests. Rarely used as the final determination of a relationship.
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© 2011 Robert H. Smith School of Business University of Maryland Key Points of Correlation There is a strong correlation between whether the Redskin’s win or lose on their last home game before a Presidential election and the party elected. If the Redskins win, the incumbent president/party tends to win. Measures of Association: Does not mean there is a causal relationship between the relevant variables; Could simply represent coincidence between the relevant variables; Should be taken in context and with the timeliness of both data sets in mind; Can be used in conjunction with other statistical testing to add another perspective to the results.
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© 2011 Robert H. Smith School of Business University of Maryland
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anova correlation - Data Analysis: Correlation & ANOVA...

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