What is correlation in data analysis?

Correlation in data analysis refers to measuring the relationship between two variables. This concept helps analysts understand how one variable may change in relation to another, revealing potential patterns or trends within the data. For instance, in examining the relationship between hours studied and exam scores, a positive correlation might indicate that as study time increases, exam scores tend to rise as well.

This relationship can be quantified using correlation coefficients, which indicate the strength and direction of the relationship. A positive coefficient signifies a direct relationship, while a negative coefficient shows an inverse relationship. Understanding correlation is fundamental in data-driven decision-making as it allows analysts to draw insights and make informed predictions based on the associations found in the data.