Lesson 2: Scatterplots and Correlation

January 15, 2020

Review:

Presentation:

  • Exploratory Data Analysis
    • Identify significant relationships
    • Calculate correlation coefficients for all combinations
    • Visualize relationships (check for non-linear patterns)
  • Scatterplots
    • Visual Correlation
      • Positive and Negative
      • Strong, moderate, weak
      • Curvilinear patterns
  • Pearson Correlation Coefficient
    • -1 < r < 1
  • Demonstrate using NY Vehicle Data
    • Scatterplots
    • Correlation Matrix
      • XL Miner for Sheets

Activity:

  • Download and install the XL Miner for Sheets Add-On
  • Correlation analysis
    • Use this data set: Pueblo RE 2014 – 100 rows
    • Find correlations for Beds, Baths, Total SqFt and Selling Price
    • Create Scatterplots
      • Beds (x) vs Selling Price (y)
      • Baths (independent) vs Selling Price (dependent)
      • Total SqFt (explanatory) vs Selling Price (response)
    • Identify the independent variable (x) with the strongest correlation to Selling Price (y)

Assignment:

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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