Correlation Flashcards
Mention types of correlation
- Positive correlation
- Negative correlation
What is negative correlation? Give example.
The correlation is negative when the variables move in opposite directions. For example the price of apples fall when its demands increase. And when the price rises its demands decrease.
What is positive correlation? Give example.
The correlation is said to be positive when it moves together in the Sam’s direction For example when the income increases, consumption also increases. When the income decreases also decrease consumption decreases
Mention which type of correlation is associated with
(9)production of vegetable
(b) temperatures sales of Ice creams
(A) negative correlation
Cb) positive correlation
Interpret the values on as 1,-1, and 0
When r is 1, then there is perfect positive relationship
When r is -1, the there is a perfect negative relationship
When r is 0then there is no relationship
Mention any four properties of correlation co-efficient
The properties of correlation co-efficient are,
(9)a negative value of r indicates an inverse a change in on variable is associated with change in other variable in the opposite direction.
(D) 16 r is positive then the two variables move in the same direction when the price of offfee a substitute of tea rises the demand of tea also rises
(C) the value of the correlation co efficient lies b/w -1 and 1
(B) if r=0 the two variables are uncorrelated. There is no linear relations/w them