In: Statistics and Probability
Please provide a few "real-world" explanations of positive or negative correlations?
Such as, the "monthly electric bill will increase as the outside temperature increases."
Positive Correlation:
A positive correlation is a relationship between two variables where if one variable increases, the other one also increases. A positive correlation also exists in one decreases and the other also decreases.
Examples:
Negative Correlation:
A negative correlation means that there exists an inverse relationship between two variables - when one variable decreases, the other increases. The vice versa is also a negative correlation too, in which one variable increases and the other decreases.
Example:
Please let me know for any doubts.