High Quality Content by WIKIPEDIA articles! High Quality Content by WIKIPEDIA articles! In statistics, correlation and dependence are any of a broad class of statistical relationships between two or more random variables or observed data values. Familiar examples of dependent phenomena include the correlation between the physical statures of parents and their offspring, and the correlation between the demand for a product and its price. Correlations are useful because they can indicate a predictive relationship that can be exploited in practice. For example, an electrical utility may produce less power on a mild day based on the correlation between electricity demand and weather. Correlations can also suggest possible causal, or mechanistic relationships; however, statistical dependence is not sufficient to demonstrate the presence of such a relationship.

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