The Hong Kong Polytechnic University · FACULTY OF STATISTICS

BB2025 Chap.7 Correlation, Regression and Categorical Data

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Chapter 7 of 10 · BB2025

Correlation, Regression and Categorical Data

Let the outcome scale set the language

Correlation treats two continuous variables symmetrically and summarises their pattern. Regression distinguishes an outcome from explanatory variables and estimates expected change or prediction. Contingency-table methods compare counts and proportions.

The same dataset can support different questions, so state whether the goal is association, prediction, explanation or categorical independence before interpreting coefficients.

Read coefficients conditionally

A linear regression slope gives expected outcome change for one predictor unit while other included predictors are held constant. That condition is mathematical rather than automatically causal.

Predictor selection should follow the conceptual model because unnecessary adjustment can reduce precision or introduce bias. Residual plots test the functional form, spread and influence that the fitted equation assumes.

Preserve categorical denominators

Pearson chi-square addresses independent categorical observations. McNemar's test uses discordant pairs from linked binary measurements.

A p value should be accompanied by cell proportions and an effect measure such as a risk difference, risk ratio or odds ratio where the design supports it. Name the denominator in words so direction and conditioning remain visible.

In this chapter

What this chapter covers

  • 01

    Pearson and Spearman correlation

  • 02

    Scatterplots and nonlinear patterns

  • 03

    Simple and multiple linear regression

  • 04

    Conditional coefficient interpretation

  • 05

    Residuals and influential observations

  • 06

    Collinearity and predictor roles

  • 07

    Pearson chi-square association

  • 08

    McNemar paired binary comparison

Worked example · free

Use a regression equation without causal overreach

Q [8 marks]. AskSia-authored practice. Predicted function = 18 + 2.4 × sessions - 0.6 × severity. Calculate the prediction for eight sessions and severity ten, then interpret the session coefficient. The marks are an AskSia study weighting, not a university marking scheme.
The top row follows the outcome.The top row follows the outcome. The lower boxes are special pairings, reminding you that correlation and chi-square do not define a directional prediction model. The outcome scale determines the association language Continuousregression slope Binaryodds or risk Time to eventhazard contrast two continuous: r two categorical: χ²
The top row follows the outcome. The lower boxes are special pairings, reminding you that correlation and chi-square do not define a directional prediction model.
  • 3Substitute the printed predictor values.
  • 2Compute the predicted score.
  • 3Interpret the slope with its condition and limit.
The prediction is 18 + 2.4 × 8 - 0.6 × 10 = 18 + 19.2 - 6 = 31.2. Holding recorded baseline severity constant, one additional session is associated with an expected 2.4-point higher function score. The coefficient is not automatically the causal effect of assigning another session because attendance may reflect health, access or motivation not adequately controlled by the model.
Sia tip — Say 'holding the included predictors constant' before deciding whether a coefficient has any causal interpretation.
Glossary

Key terms

Pearson Correlation
A bounded coefficient summarising the direction and strength of linear association between two continuous variables.
Spearman Correlation
A rank-based coefficient summarising the direction and strength of a monotonic relationship.
Regression Slope
The expected outcome change for one predictor unit under the conditions represented by the fitted model.
Residual
The difference between an observed outcome and the value predicted by a fitted model.
Collinearity
Overlap among predictors that makes their separate coefficient estimates unstable or imprecise.
McNemar Test
A test comparing discordant paired binary outcomes across two linked conditions or times.
FAQ

Correlation, Regression and Categorical Data FAQ

Does a high correlation mean one variable predicts another well?

Not necessarily. Correlation summarises a sample's linear or monotonic association and does not evaluate calibration, prediction error or performance in new data. Outliers, subgroup mixing and restricted ranges can change it substantially. A prediction model needs explicit direction, validation and error assessment beyond a single pairwise coefficient.

What does holding other predictors constant mean?

It means the coefficient compares fitted outcomes for observations differing by one predictor unit while the model values of the other included predictors are fixed. This conditional comparison may be scientifically useful, but it becomes causal only under design and adjustment assumptions that rule out relevant confounding and inappropriate control variables.

When should I use McNemar instead of chi-square?

Use McNemar when binary results are linked within the same participants or matched pairs across two conditions. It analyses the discordant pairs that changed category. Pearson chi-square independence fits unrelated observations. The tables may look identical, but the reference variability changes because pairing must be preserved.

Study strategy

Exam move

For regression questions, write the equation, units and outcome direction before substitution. Interpret every slope with its predictor unit and conditioning phrase, then return to the design before using causal language. For correlation, draw the possible scatterplot shapes that produce a misleading summary.

For categorical data, label rows and columns with denominators and decide independence or pairing before choosing Pearson chi-square or McNemar. Finish with an effect measure, not a p value alone. Build a residual checklist from four visual patterns: curvature, widening spread, isolated influence and subgroup structure.

For every categorical table, calculate one row proportion and one column proportion and explain why they answer different questions. That exercise makes conditioning visible and reduces odds, risk and prevalence reversals under time pressure. Write one example in which adjustment reduces a coefficient and another in which it increases it.

Explain both through the direction of confounding instead of treating change as proof that one model is correct. Re-express one coefficient after changing the predictor unit, such as years to decades, and verify that fitted values stay unchanged. This separates numerical scaling from substantive effect. Do the same for a reference category and track which comparisons reverse sign.

Working through Correlation, Regression and Categorical Data in BB2025? Sia is AskSia’s AI Statistics tutor — ask any BB2025 Correlation, Regression and Categorical Data question and get a clear, step-by-step explanation grounded in how BB2025 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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