Regression & Correlation Vocabulary

a measure of the strength and direction of relationship between variables

“Height and weight show a positive correlation.”

a method for modeling the relationship between variables

“Linear regression predicts salary based on years of experience.”

the proportion of variance explained by a model (R²)

“An R² of 0.85 means the model explains 85% of variance.”

the difference between observed and predicted values

“Analyzing residuals reveals patterns the model missed.”

non-constant variance in the error terms of a regression

“Heteroscedasticity violates key regression assumptions.”

high correlation among predictor variables

“Multicollinearity inflates standard errors of coefficients.”

estimating values within the range of known data

“We used interpolation to estimate the value at x = 5.”

estimating values beyond the range of known data

“Extrapolating too far from the data is risky.”

an apparent relationship caused by a third variable or chance

“The correlation between ice cream sales and drowning is spurious.”

a relationship where one event directly produces another

“Correlation does not imply causation.”