Correlation Co-efficient Definition:
A measure of the strength of linear association between two variables. Correlation will always between -1.0 and +1.0. If the correlation is positive, we have a positive relationship. If it is negative, the relationship is negative.

Correlation
Correlation can be easily understood as co relation. To define. correlation is the average relationship between two or more variables. When the change in one variable makes or causes a change in other variable then there is a correlation between these two variables.

These correlated variables can move in the same direction or they can move in opposite direction. Not always there is a cause and effect relationship between the variables when there is a change; that might be due to uncertain change.

Simple Correlation is a correlation between two variables only; meaning the relationship between two variables. Event correlation and simple event correlation are the types of correlations mainly used in the industry point of view.

Types of Correlation

In Research Methodology of the Management, Correlation is broadly classified into six types as follows :

(1) Positive Correlation
(2) Negative Correlation
(3) Perfectly Positive Correlation
(4) Perfectly Negative Correlation
(5) Zero Correlation
(6) Linear Correlation

Positive Correlation

When two variables move in the same direction then the correlation between these two variables is said to be Positive Correlation. When the value of one variable increases, the value of other value also increases at the same rate.

For examplethe training and performance of employees in a company. Negative Correlation

In this type of correlation, the two variables move in the opposite direction. When the value of a variable increases, the value of the other variable decreases.

For example, the relationship betwwen price and demand.

...scatter diagram made by the given data, it is noted that as the disposable income increases the annual sales also increases.
[pic]
➢ Again, We know that the coefficient correlation is,
r = [pic][pic]
Here,
r = [pic]
= [pic]
= 0.70
Therefore, there is a strong positive correlation between the disposable income and the annual sales.
➢ The regression coefficient is 0.193. That means sales will increase by $0.193...

...CORRELATION ANALYSIS (V. Imp)
Meaning: -- If two quantities vary in such a way that movement in one are accompanied by movement in other, these quantities are correlated. For example, there exits some relationship between age of husband and age of wife, price of commodity and amount demanded etc. The degree of relationship between variables under consideration is measured through correlation analysis. The measure of correlation called...

...Correlation
Chapter 10
Covariance and Correlation
What does it mean to say that two variables are associated with one another?
How can we mathematically formalize the concept of association?
Differences between Data Handling in Correlation & Experiment
1. Summarize entire relationship
• We don’t compute a mean Y (e.g., aggressive behavior) score at each X (e.g., violent tv watching). We summarize the entire relationship formed by all...

...CORRELATION REPORT
Abstract
This is a report of a study to assess the reliability and validity of the self-efficacy optimism personality inventory, a subtest of the Questionnaire for the Assessment of Personal Optimism and Social Optimism Extended (POSO-E), as a predictor of achievement in an academic setting. “Self-efficacy optimism” refers to the tendency of expecting positive consequences based on one’s own behaviour. Fifty first year Psychology students completed a...

...14: Correlation
Introduction | Scatter Plot | The Correlational Coefficient | Hypothesis Test | Assumptions | An Additional Example
Introduction
Correlation quantifies the extent to which two quantitative variables, X and Y, “go together.” W hen high values of X are associated with high values of Y, a positive correlation exists. W hen high values of X are associated with low values of Y, a negative correlation exists. Illustrative data...

...What is Correlational Research?
The correlation research method is appropriate when researchers want to study and “assess relationships among naturally occurring variables.” Assessment means making predictions about the nature of the relationships being studied. It also means describing the relations and assigning them a “correlation coefficient” that describes the direction and magnitude of the movement of variables to one another.
There are many types of...

...-------------------------------------------------
Simple regression and correlation
Submitted by Sohaib Roomi
Submitted to:Miss Tahreem
Roll No M12BBA014
Simple Regression
And Correlation
Introduction
The term regression was introduced by the English biometrician, Sir Francis Galton (1822-1911) to describe a phenomenon in which he observed in analyzing the heights of children and their parents. He solved a tendency toward the average height of all...

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