What I Have Learnt From The Previous Lessons Course Work Examples

Correlation analysis and linear regression are important to me in terms of their simplicity and application to reality. I have discovered in statistics that when you are meant to understand the relationship of some independent variables, there is always a need for a model that helps analyse the relationships existing between the data. Having an opportunity to understand how the models work, is a plus because of the various applications I discovered it could be used for different purposes in my study researches.
I can apply both models to my researches and economic or financial analysis at my workplace in the nearest future. I discovered that if I’m to analyse some set of data that will be important for projections I will definitely need linear regression for such analysis. I now understand that i can use linear regression to fit a predictive model such as using it to predict what will likely happen when there are sets of variables.
The correlation analysis provides the opportunity to learn the strength in the relationship between the values I’m analysing. This shows if the association are actually strong or not. The importance of this is that it affects the calculation of the data being analysed and the certainty in the result of the analysis.
One major challenge with the use of the two models is the understanding and use of ‘null hypotheses’ and calculating the T-value. I was able to overcome the challenge by learning the formula and what each of the represent when I want to analyse my data. I was then able to use the result of my T-Value to calculate the null hypothesis.