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
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
___(___, ___)