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Bivariate data
Data consisting of pairs of values $(x, y)$ where two quantitative variables are measured for each case.
Correlation
A measure of the association between two variables, describing whether they tend to increase together, decrease together, or show no consistent pattern.
The closer the points lie to a straight line, the stronger the correlation.
Line of best fit
A straight line drawn through the middle of a scatter plot so that points are (roughly) evenly distributed above and below it, used to model and predict relationships.
A common method is:
Outlier
A data value that lies an unusually large distance from the rest of the data set.
Data from 7 students:
A scatter diagram for this data shows a downward trend, meaning negative correlation (students who run more laps tend to watch fewer hours of TV).
The drawn line here is a computed straight-line fit, but the key interpretation is the same as a by-eye line: the overall trend is decreasing, so the correlation is negative.
Covariance
A measure of how two variables vary together, based on the products of their deviations from their means.
A common formula is: $$s_{xy}=\frac{\sum (x-\bar{x})(y-\bar{y})}{n}$$
Interpolation
Estimating a value within the range of the collected data.
Extrapolation
Estimating a value outside the range of the collected data.