Tag: Data Analysis

Data Visualization
Rick Wicklin 0
The 80-20 rule for blogs

You've probably heard about the "80-20 Rule," which describes many natural and manmade phenomena. This rule is sometimes called the "Pareto Principle" because it was discovered by Vilfredo Pareto (1848–1923) who used it to describe the unequal distribution of wealth. Specifically, in his study, 80% of the wealth was held

Programming Tips
Rick Wicklin 0
Distance correlation

Correlation is a statistic that measures how closely two variables are related to each other. The most popular definition of correlation is the Pearson product-moment correlation, which is a measurement of the linear relationship between two variables. Many textbooks stress the linear nature of the Pearson correlation and emphasize that

Analytics
Rick Wicklin 0
3 problems with mean imputation

In a previous article, I showed how to use SAS to perform mean imputation. However, there are three problems with using mean-imputed variables in statistical analyses: Mean imputation reduces the variance of the imputed variables. Mean imputation shrinks standard errors, which invalidates most hypothesis tests and the calculation of confidence

Analytics
Rick Wicklin 0
Should you use principal component regression?

This article describes the advantages and disadvantages of principal component regression (PCR). This article also presents alternative techniques to PCR. In a previous article, I showed how to compute a principal component regression in SAS. Recall that principal component regression is a technique for handling near collinearities among the regression

Programming Tips
Rick Wicklin 0
Order correlations by magnitude

Correlations between variables are typically displayed in a matrix. Because the correlation matrix is determined by the order of the variables, it is difficult to find the largest and smallest correlations, which is why analysts sometimes use colors to visualize the correlation matrix. Another visualization option is the pairwise correlation

Analytics
Rick Wicklin 0
7 ways to view correlation

Correlation is a fundamental statistical concept that measures the linear association between two variables. There are multiple ways to think about correlation: geometrically, algebraically, with matrices, with vectors, with regression, and more. To paraphrase the great songwriter Paul Simon, there must be 50 ways to view your correlation! But don't

Analytics | Learn SAS
Rick Wicklin 0
What is rank correlation?

When someone refers to the correlation between two variables, they are probably referring to the Pearson correlation, which is the standard statistic that is taught in elementary statistics courses. Elementary courses do not usually mention that there are other measures of correlation. Why would anyone want a different estimate of

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