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Worked Examples · Example 4

Q.Distinguish between correlation and regression.

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Correlation and regression are both concerned with the relationship between two variables, but they serve different purposes:

BasisCorrelationRegression
PurposeMeasures the degree and direction of the linear relationship between two variablesEstablishes a functional equation to estimate/predict one variable from the other
OutputA single number, rr, between −1-1 and +1+1Two full regression equations (lines), each with an intercept and a slope
SymmetrySymmetric — rxy=ryxr_{xy} = r_{yx}, no distinction between dependent/independent variableAsymmetric — a distinct dependent and independent variable, and two different lines depending on which is which
Cause-effectDoes not imply causation, only associationAlso does not by itself imply causation, but is used specifically to predict a dependent variable's value
UseAnswers 'how strongly are XX and YY related, and in which direction?'Answers 'given a value of XX (or YY), what value should we expect for YY (or XX)?'

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