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What is Correlation? Do we have to learn it with high calculations? Do we have to go for a complicated formula to understand it?

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Presentation on theme: "What is Correlation? Do we have to learn it with high calculations? Do we have to go for a complicated formula to understand it?"— Presentation transcript:

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2 What is Correlation? Do we have to learn it with high calculations? Do we have to go for a complicated formula to understand it?

3 So, how can we understand Correlation? Correlation is easy to understand if you think about it logically. Correlation deals much more with common sense than numbers.

4 Correlation can be easily understood as co relation. Correlation is an average relationship between two or more variables.

5 Negative correlation

6 Negative correlation will be:  When the two variables move in the opposite direction.  When an increase in the value of one variable causes decrease in the value of another variable and vice- versa.  When the two variables move in the opposite direction.  When an increase in the value of one variable causes decrease in the value of another variable and vice- versa.

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9 XY 24 47 611 917 1225 Y+ Positive Correlation Negative Correlation XY 30-2 21 113 77 -312 Y- Both inputs and outputs are increasing Inputs and outputs are going in opposite directions

10 1. Perfect Positive Correlation 2. Perfect Negative Correlation Perfect correlations When the two variables change in equal proportion and move in the same direction. When the two variables change in equal proportion and move in opposite directions.

11 No pattern = No correlation There is no relation between income and height of a person.

12 Positive Correlation Negative Correlation Perfect positive Correlation Perfect Negative Correlation Zero or No Correlation

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