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Understanding Correlation

What are correlations and what are they good for? The question is not facetious, just practical.

Correlation is one of the most basic and common statistical procedures. A correlation is a single number that describes the degree of relationship between two variables. Correlations are statistical measures that determine if two characteristics are associated across the members of a specific group or class. They are meant to ascertain certain regular similarities in the data and to provide the background for asking larger, causal questions. The logic of correlation helps you figure out in what context the analysis is applicable and to what effect.

For example, in marketing a specific product, it might be useful to know if there is a predictable relationship between sales and factors such as age, income, or geographic location.

For a walkthrough of this type of analysis, read Correlation.

  • How will you use the correlation function in your social media analysis? Let us know what you will compare and what results you anticipate.
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Digital Media Analytics: Introduction

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