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Nonlinear relationship

Covariance and correlation measure the strength of a linear relationship.

If these metrics are low, it doesn't mean that the variables are not related at all!

In some cases, you can achieve linearity using a transformation of one or more of the variables. If your data is heavily skewed, a log-transformation usually helps.

In your environment, you can find the houses data frame with two variables: area and price.

This exercise is part of the course

Practicing Statistics Interview Questions in R

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Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Draw a scatterplot of price vs. area
___(___ ~ ___, data = ___)

# Calculate the correlation coefficient of price and area
___(___, ___)
Edit and Run Code