Introduction to Correlation

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By DataScience.com Sponsored Post.Introduction: What Is Correlation and Why Is It Useful?Correlation is one of the most widely used — and widely misunderstood — statistical concepts. In this overview, we provide the definitions and intuition behind several types of correlation and illustrate how to calculate correlation using the Python pandas library.The term "correlation" refers to a mutual relationship or association between quantities. In almost any business, it is useful to express one quantity in terms of its relationship with others. For example, sales might increase when the marketing department spends more on TV advertisements, or a customer's average purchase amount on an e-commerce website might depend on a number of factors related to that customer. Often, correlation is the first step to understanding these relationships and subsequently building better business and statistical models.So, why is correlation a useful metric?Correlation can help in predicting one quantity…