Topic 5 DQ 1
PLease Respond to the following post with a paragraph, add citations and references.
The problem with this statement is that we are only presented with the “Given” which describes a linear correclation between number of cigarettes smoked and pulse rate. Linear correlation shows a relationship between the two variables – cigarettes and pulse rate- but never shows a causation. To show or prove a causation, a regression analysis needs to be performed.
Correlation is used to indicate relation, while a linear regression is a technique designed both to quantify a positive relationship between random variables, and prove that one variable is dependent on another variable
https://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/correlation-regression.asp
Brase, C.,
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