Correlation
Definition
Measures the relationship between two variables.
Types
Pearson Correlation
Spearman's Rank Correlation
Kendall’s Tau
Calculation
Formula for Pearson
Assumptions
Linearity.
Homoscedasticity.
Normality of residuals.
Regression
Applications
Assumptions
Types
Multiple Linear Regression
Used for binary outcomes
Logistic Regression
Used for binary outcomes
Polynomial Regression
Fits polynomial equation
Fits polynomial equation
Fits polynomial equation
Model Fitting
Definition
Models the relationship between a dependent variable and one or more independent variables.
Diagnostics
Residual analysis.
Multicollinearity (using VIF)
Outliers (using Cook’s distance).
Interpretation
Strength of the correlation.
Positive, negative, or no correlation.