Definition: It is the existence of some definite relationship between two or more variables. Correlation analysis is a statistical tool used to describe the degree to which one variable is linearly related to another variable.
Types of Correlation
Correlation may be classified in the following ways:-
Positive and negative correlation
Correlation is said to be positive if two series move in the same direction, otherwise it is negative (opposite Direction).
Linear and Non-Linear correlation
Correlation is linear if the amount of change in one variable tends to bear a constant ratio to the amount of change in the other variable otherwise it is non-linear.
Simple, partial and multiple correlation
Simple correlation is where two variables are studied while partial or multiple involves three or more variables.
Methods of calculating simple correlation
1. Scatter diagram
2. Karl Pearson’s coefficient of correlation
3. Spearman’s rank correlation coefficient
4. Method of least squares
Titany answered the question on
October 21, 2021 at 13:58