Unformatted text preview: even remain stable based on the past data of a particular stock. In this way R square coefficient will help in the process of analysis and future predictions. Essentially, a correlation exists between two variables when the value of one variable are somehow associated with the values of the other variable. Correlation does not prove causation; causation is a causing or producing an effect. Yet correlation is entirely important if it is a known fact that the variables are related and then an R square coefficient of determination can be used....
View Full Document
- Spring '11
- Regression Analysis, Correlation does not imply causation