Question

Review the following article on correlation. What one new piece of information did you learn from this article? Explain it in everyday language – in the same way that you might explain it to a client. Create an example to help in your explanation.

Answer 1

correlation; if we want to check relation between two varibale then we use correlation coefficient:

its denoted by r,correlation lies between -1 < r <  1.

positive correlation: if one variable increases (decreases) then other variable also increases (decreases) then we called positive correlation between two variable. coerrelation range lies between r > 0.

if 0.70> r > 0.40 then we said week correaltion,if 1> r > 0.70 then we said strong correlation between them, if r = 1 we said perfect positive correlation between them.(approx values 0.40, 0.70)

exaple : age vs Height (age 0- 22)

if age increases then height also increases ,this is positive correlation .

negative correlation:

if one variable increases (decreases) then other variable also decreases(increases ) then we called negative correlation between two variable. coerrelation range lies between r < 0.

if 0.70 > r > -0.40 then we said week correaltion,if 1 > r > - 0.70 then we said strong correlation between them, if r = -1we said perfect negative correlation between them.((approx values -0.40, -0.70))

example: product vs bank balance.

if you purchess number of product but your bank balance is decreases.this is negative correaltion.

no correlation :if correlation value near by zero then we cunclude NO relation between two variable.

heigh vs GDP of india, here no relation between both variable, does not depend variable to each other.