Regression and Correlation
Correlation and regression are the two most widely used statistical methods for determining the strength between two variables and how they vary with one another.
Correlation is very useful in hypothesis testing where its necessary to establish cause-effect relationship.
Correlation and regression plays a crucial role in medical as well as scientific experiments. For example if one wants to observe the effect of a drug on the blood pressure of a patient, correlation and regression analysis can be used to determine the level of blood pressure compared amount of drug given.
Recently the very method of regression and correlation analysis was used to determine the lentic water quality of the important religious Brahmasarovar water tank at kurukshetra, Haryana. A positive correlation was found between the dissolved oxygen and the population of plankton and phytoplankton (the good bacteria that reduced carbon dioxide and increases the amount of oxygen that helps sustain the aquatic web of life)
Correlation and regression analysis has also been extensively used by business analysts in order to project the future stock prices and financial condition of the company.
Correlation and regression is also used by researchers of NASA and other space agencies to calculate the solar maximum that will occur (which is a 11 year period when number of sun spots appear on the sun when the irradiance of sun increase thus altering earths climate and increasing the temperature)
CONCLUSION
In the assignment we tried to test the theory whether gold price really affect the forex rates. In some case we found that yes theres a direct correlation between the price of gold and forex rates and in other questions we found inverse of it. Thus we can say that this variation is due to plethora of various other factors that play a role in determining