Question
Give the defination of correlation. Give the meaning of following :
r = 0, r= +1, r = –1
Solution
According to Croxtion and Cowden, when the relationsip is of a quantitative nature, the appropriate statistical tool for discoverinng and the measuring the relationship and expressing it in a brief formula is knwon as statistics.
(i) When r = 0, it implies that there exists no relationship between two variables X and Y. On other ways, r = 0 shows the absence of relationship.
(ii) r = 1 shows that there is perfect correlation between two variables X and Y.
(iii) r = –1 shows that there is perfect negative relationship between two variables X and Y.
