Statistical Modelling

Statistical Modelling

1. Correlation

   • Measures the degree which 2 variables are related, do not fit a line
     • Sample Correlation Coefficient: R
       • Carry out hypo testing on the SAMPLE correlation (R) to find out the POPULATION correlation (Rho)
         • R is just an estimate of Rho
       • Rho: The population correlation which measures the correlation of all possible pairs of observations from the 2 variables

2. Regression

   • Tries to create the best fit line
   • Regression Model
     • For a particular explanatory variable, e.g.. x=5 for the age=5, the response variables follows a normal distribution
       • Conditional Mean
         • The conditional mean is just the value when x=5..
       • Conditional Standard Deviation