Sunday, 10 July 2016


}  Degree and type of relationship between two or more quantities (variables) in which they wary together over a period.
}  Example: Variation in the level of expenditure or saving with variation in the level of income.
}  A+ve correlation exists where the high values of one variables associated with the high values of other variable.
}  A-ve correlation means association of high values of one with low values of the other.
}  Correlation can vary from +1 to  -1
}  Values close to +1 indicate a high degree of positive correlation.
}  Values close to -1 indicates a high degree of negative correlation.
}  Values close to 0 indicates poor correlation of either kind and 0.
}  0 indicates no correlation at all.   

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