In this exercise you will learn to visualize the pairwise relationships between a set of quantitative variables. To this end, you will make your own note of 8.1 Correlation plots from Data Visualization with R.
Living area has a strong positive correlation to home price.
Yes, if two variables have a strong correlation, they directly affect each other. If Living Area goes down, it’s likely that home price also goes down. If Living Area goes up, it’s likely that home price will also go up.
bathrooms could be a confounding variable in this case. Bathroom sq. footage contributes to living area. The more living area in a home, the more bathrooms there will be most likely, which will cause the home price to increase.
The only factor that has a strong negative correlation to home price is age. This is because the age of buyer/seller does not matter in the sale of a home.
Factors that have little correlation to home price include pctCollege and lot size. I will not include age as it has a strong negative correlation to home price.
Just looking at the correlation coefficient, you can be sure that there is a relationship between two factors. Of the correlation coefficient is exactly 0, you can be sure that there is no relation at all. Even if the coefficient is .01 or -.01, it still indicates that there is a very small correlation between two factors.
Done.