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