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Statistics

Key Terms

StatisticsKey Terms

coefficient of correlation
a measure developed by Karl Pearson during the early 1900s that gives the strength of association between the independent variable and the dependent variable;
r= n xy[ x][ y] (n x 2 [ x] 2 )(n y 2 [ y] 2 ) r= n xy[ x][ y] (n x 2 [ x] 2 )(n y 2 [ y] 2 )
where n is the number of data points
The coefficient cannot be more than 1 and less than –1. The closer the coefficient is to ±1, the stronger the evidence of a significant linear relationship between x and y.
outlier
an observation that does not fit the rest of the data
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