[EMAIL PROTECTED] (Jay Warner) wrote in message news:<[EMAIL PROTECTED]>...
> Hitting only #3:
> 
> albinali wrote:
> 
> > Hi all,
> >   I have 3 questions:
> > [smip]
> > 3- Whats the difference between dependence and correlation? are independent
> > random variables always uncorrelated?
> 
> "correlation" says that when we observe a change in one variable, we see a
> consistent change in the other.  If the correlation is positive, then both go
> up together and down together.  If the correlation is negative, then as one
> goes up, the other goes down, and vice versa.
> 
> "dependence"  indicates that variable B is controlled, or is caused by,
> variable A.  the question of what is 'causality' takes up more space than the
> internet has available.
> 
> In Box, Hunter & Hunter is a plot of the human population of Oldenberg,
> Germany, against the number of nesting storks for a certain time period.  It
> "proves" that storks bring human babies, since more storks means more people.
> Does the human population "depend" on the stork population?  I don't think
> so.  Is the human population correlated with the stork population?  Yup.
> 
> You also asked:
> 
>         are independent random variables always uncorrelated?
> 
> If the variables are "independent" they must be "uncorrelated."  By
> definition.
> 
> BUT, if two variables are correlated, then they are not independent, for the
> purposes of doing the math.
> 
> I would suggest that you spend less time on the exact terms (my personal
> failing) and look at the plots of paired variables, looking for
> correlations.   Between these and a 'factor analysis' you should be able to
> see which variables are worth including, and which simply get in their own
> way.
> 
> Jay
> --
> Jay Warner
> Principal Scientist
> Warner Consulting, Inc.
> 4444 North Green Bay Road
> Racine, WI 53404-1216
> USA
> 
> Ph: (262) 634-9100
> FAX: (262) 681-1133
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> 
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> 
> 
> 
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Jay, 

I liked your summary and thought that you might like to see a 1938
study done by Jerzy Neyman of the Neyman-Pearson Lemma that "proved"
that storks do indeed bring babies ...

Regards

Dave Reilly
Automatic Forecasting Systems
http://www.autobox.com
215-675-0652


http://www.autobox.com/spur9.html
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