Forecasting Using Relationships Between Variables

Abstract

When you have finished working through this chapter you should be able to

• Draw a SCATTER DIAGRAM

• Understand what is meant by a linear relationship

• Distinguish between and identify explanatory and DEPENDENT VARIABLES

• Define the term correlation

• Distinguish between positive correlation and NEGATIVE CORRELATION

• Measure the strength of a linear relationship using a CORRELATION COEFFICIENT

• Understand that strong correlation does not necessarily imply a causal relationship