ABM: Concepts and Practice · Part A: Statistics

Chapter 3: Correlation and regression

Whether two figures move together, how closely, and how to use one to forecast the other: the start of every credit score and deposit model.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 3.1Correlation and the scatter diagramp. 31
• 3.2Karl Pearson’s coefficientp. 32
• 3.3Rank correlationp. 33
• 3.4The regression linesp. 34
• 3.5Forecasting and its errorp. 35
• Exam traps and quick checksp. 36
• Practice: 16 questions in three roundsp. 37
• Answers, with every wrong option explainedp. 39
• Make it stickp. 41
• Chapter 3 on one pagep. 42

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.