Under what conditions would you use correlation and/or regression analysis? Include comments on the type of data needed and a work-related suggestion for their use.

Answer:

Correlation is used to study relation between two or more variables. It is used in scenarios where there are more number of variables and we need to know if they are related.

Regression is used to fit a particular type of equation to related variables. Here we identify one variable as the dependent variable and the other variable as the inependent variable. We try to fit an equation for the dependent variable using the information of the independent variable. Using this relation, we can predict future values.

In practical situations we use regression to a very large extent where we have many variables and need to understand their relation.