Correlation coefficient is a statistic that is used to analyze how strong a relationship is between two or more variables. Different types of correlation exist but the most common type of correlation is the Pearson’s R correlation coefficient. This coefficient that bears the name of its inventor, Karl Pearson, is commonly used in linear regression analysis. Regression in this case expresses the form of relationship that exists between two or more values with one value being the dependent variable or the response value and the others being the independent variable also known as predictor or explanatory. Correlation coefficient is a value that can never be more than one or less that negative one. If the value is positive then there is a linear positive relationship between the two variables, when the value is negative then the inverse is true. The strength of the linear correlation however, is determined by how close the value is to either 1 or -1.
Correlation analysis is applicable in several industries in the real world. These industries include but are not limited to the manufacturing industries, retail and wholesale sectors, the health sector among other industries. In the health sector, for example, correlation coefficient could be used in research to bring perspective into cause and effect. For instance, different studies are being done to analyze the corona virus scourge and find possible treatment or vaccines to it. In a certain study, chloroquine phosphate, an old drug that was used to treat malaria, has been linked to having success in treating COVID-19. Among a group of one hundred patients, 70 were given the drug and 30 where not and used as a placebo. Out of the 70, 45 recovered with the 15 showing strong signs of recovery (Touret & de, 2020). The independent variable in this case, is the use of chloroquine as treatment and the dependent variable is the rate of survival. Therefore, the use of correlation analysis is instrumental in different industries and its importance can not be stressed enough.
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References
Gao, J., Tian, Z., & Yang, X. (2020). Breakthrough: Chloroquine phosphate has shown apparent efficacy in treatment of COVID-19 associated pneumonia in clinical studies. Bioscience trends .
Touret, F., & de Lamballerie, X. (2020). Of chloroquine and COVID-19. Antiviral research , 104762.
