Linear Correlation - 2 - Types - Positive and Negative

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Linear Correlation

(Correlation Analysis - Association between two variables)

Types of Correlation:

1) Positive & Negative Correlation
i. Positive Correlation
If the values of the two variables deviate in the same direction i.e., if the increase in the values of one variable results, on an average, in a corresponding increase in the values of the other variable or if a decrease in the values of one variable results, on an average, in a corresponding decrease in the values of the other variable, correlation is said to be positive or direct.
Some examples of positive correlation:
 The family income and expenditure on luxurious items.
 Amount of rainfall and yield of crop (up to a point).
 Price and supply of a commodity.

ii. Negative Correlation
Correlation is said to be negative or inverse if the variables deviate in the opposite direction, i.e., if the increase (decrease) in the values of one variable results, on an average, in a corresponding decrease (increase) in the values of the other variable.
Some examples of negative correlation:
 Price and demand of a commodity

[padmakamalapuri]

what do you mean by change in origin and change in scale?

[sharmilarai]

Sir thanku! U really clarify this topic...beautifully