Models with Correlated Uncertain Variables
The correlation between two independent variables is zero or nearly zero. And this is why we say that independent variables are not correlated.
To check if 2 variables are correlated à =correl (data1, data2) à can vary from -1 and 1 à For independent variables, the correlation is near 0. à So, for example, a value of 0.7 indicates a large positive correlation.
Correlations between uncertain variables are important and should be carefully examined. Adding a correlation between two sources of uncertainty will most likely change the results. It is thus recommended that we always include correlation analysis in the process of building a simulation model.
To check if 2 variables are correlated à =correl (data1, data2) à can vary from -1 and 1 à For independent variables, the correlation is near 0. à So, for example, a value of 0.7 indicates a large positive correlation.
Correlations between uncertain variables are important and should be carefully examined. Adding a correlation between two sources of uncertainty will most likely change the results. It is thus recommended that we always include correlation analysis in the process of building a simulation model.