Why Correlation (and Other Summary Statistics) Can Be Misleading

...And here's how to avoid drawing misleading conclusions.

Many data scientists solely rely on the correlation matrix to study the association between variables.

But unknown to them, the obtained statistic can be heavily driven by outliers.

This is evident from the image above.

The addition of just two outliers drastically changed:

• the correlation

• the regression fit

Thus, plotting the data is highly important.

This can save you from drawing wrong conclusions, which you may have drawn otherwise by solely looking at the summary statistics.

One thing that I often do when using a correlation matrix is creating a PairPlot as well (shown below).

This lets me infer if the scatter plot of two variables and their corresponding correlation measure resonate with each other or not.

👉 Over to you: What are some other measures you take when using summary statistics?

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