Statistics

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Geometric Mean

Geometric mean is one of the methods to estimate mid-value of some data. In geometric mean the midpoint criteria is based on the geometric progression where the difference between the consecutive values increase exponentially. It is calculated as the nth root of the product of the values.

Variance

Variance is another statistical tool which tells how much a data is diverging from the mean. It is the mean of the squared differences. Where the differences refer to the difference between the mean and the individual values. Its scale is in the range of square of the maximum value.

Standard Deviation

Standard deviation is the tendency of the data to differ from the mean. Mean, median and mod estimate the midpoint of the data standard deviation tells how much the data is spread out. Standard deviation is the square root of the variance.

Covariance

Covariance measures the extent to which two variables, say x and y, move together. A positive covariance means that the variables move in tandem and a negative value indicates that the variables have an inverse relationship. While covariance can indicate the direction of relation, the correlation coefficient is a better measure of the strength of relationship.

Correlation Coefficient

Correlation coefficient measures the degree to which two variables move together. Its value ranges between -1 and 1. -1 indicates perfectly negative relationship, 1 shows a perfectly positive relationship and zero means there is no linear relationship between the variables. Correlation doesn’t necessarily mean causation.

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