Define variation to a beginner

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SUMMARY

The discussion centers on defining "variation" and "variability" for beginners, particularly in the context of statistical analysis. The term "R" is highlighted as a measure of the strength of the linear relationship between two variables, with an example given where R=0.91 indicates that the linear model explains over 91% of the variation in sales. Additionally, Mean Squared Error (MSE) is identified as a key metric for assessing variability in forecast errors. The importance of variation in establishing correlation between sales and effort is also emphasized.

PREREQUISITES
  • Basic understanding of linear regression concepts
  • Familiarity with correlation coefficients, specifically "R"
  • Knowledge of Mean Squared Error (MSE) in statistical analysis
  • Concept of variable relationships in data analysis
NEXT STEPS
  • Research the interpretation of correlation coefficients in depth
  • Learn about linear regression models and their applications
  • Explore the calculation and significance of Mean Squared Error (MSE)
  • Study the relationship between independent and dependent variables in statistics
USEFUL FOR

Beginners in statistics, data analysts, and anyone seeking to understand the concepts of variation and correlation in data relationships.

mkir
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Define "variation" to a beginner

How do you define the word "variation" "variability" to a complete beginner, like myself.
For Example, I understand 'R' explains how strong the linear relationship between the change in X and Y. But sometimes, let's Say R=.91, people will say the linear trend model explains more than 91% of the variation in sales.


Another Case is the Mean squared error (MSE) is a measure of variability in the forecast errors.

Hope someone can use 'SIMPLE' words to explain it to me.


Thanks a lot!
 
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Let's say sales you are looking to explain "sales" with "effort." Suppose effort changes over time, but sales are constant. Then obviously effort cannot "explain" sales, because there is no correlation between the two (sales stay constant as the level of effort changes). There is no correlation unless there is some variation in both sales and effort.
 
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