UNIT - 12 Correlation
What is correlation ? • Refers to the degree of correspondence or relationship between two variables. • Correlated variables tends to change together • The value of correlation is always lie b/w 1 to -1 • Correlation = 0
Correlation deals with • Measuring the relationship between variables. • Testing the relationship for its significance. • To give confidence interval for population.
TYPES • Simple, partial and multiple correlation • Positive and negative correlation • Linear and nonlinear correlation
METHODS • Scatter diagram • Karl Pearson’s correlation coefficient • Spearman’s Rank correlation coefficient