Correlation, causation and interpreting R and R-squared

What this note covers

1. Direction first: positive and negative relationships
2. Identifying dependent and independent variables
3. Correlation is not causation
4. Interpreting R without calculating it
5. Interpreting R-squared as strength of relationship
6. Worked example: rainfall and crop revenue in a fictional region
7. How this topic is examined and what earns full marks

7 sections · 11 key terms & formulas · 6 common mistakes