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Steps for calculating variance in a sample
calculate the mean for each variable (X,Y)
for each variable, subtract the mean from each observation, then square the result. add all of those values together, then divide by N-1
∑((X-meanX)²) / N-1
Calculating standard deviation with variance
Standard deviation = √Variance
Steps to calculate covariance of two variables (x,y)
calculate mean and variance
for each observation, subtract the mean from each value of x and y, then multiple
(x1-meanX) x (y1-meanY), (x2-meanX) x (y2-meanY)…
sum all of the products for each observation
∑(x1-meanX) x (y1-meanY) + (x2-meanX) x (y2-meanY)…
divide that sum by N-1 (same N as mean/variance, number of observations x=y)
How to calculate correlation (x,y)
covariance of (x,y) divided by (SDX times SDY)
What is a nominal value?
distinctive value (e.g., gender, race, etc.)
What is an ordinal value?
monotonically increasing value (e.g., 1st, 2nd, 3rd, education level, etc.)
What is an interval value?
value with equal spacing (and zero doesn't usually mean zero, e.g., celsius, IQ)
What is a ratio value?
value with an absolute zero (that really means zero, e.g., kelvin, money, etc.)