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Are All Variables the Same?

Ernest Rutherford The aim of analytics is to find answers to problems. How do we find answers to the problems? We do that using data. When we begin to statistically analyse some data gathered through an experiment, we come across different types of data or variables....

Spearman’s Rank Correlation between Rice and Rainfall

Spearman's Coefficient of Rank Correlation (denoted by rho) is named after the British psychologist, Charles Edward Spearman. Rank correlation is a non-parametric variant of Karl Pearson's Coefficient of Correlation. This means, while Pearson's r requires an...

What is Linear Correlation?

The analysis of correlation is an extremely useful technique in business. Naturally, correlations are extremely popular in various analyses. Correlation is measured by a coefficient that is a statistical estimation of the strength of relationship between data. The...

The Assumptions in Linear Correlations

Given how simple Karl Pearson's Coefficient of Correlation is, the assumptions behind it are often forgotten. It is important to ensure that the assumptions hold true for your data, else the Pearson's Coefficient may be inappropriate. The assumptions and requirements...

When Things are Correlated, Do they Cause Each Other?

We've talked about how popular the concept of correlation is in business analytics. Causation, and its variants are also used rather commonly. This makes it easy to mistakenly connect the two popular terms and even use them interchangeably. The Latin phrase, cum hoc...

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