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Business Statistics- Correlation Analysis

The correlation analysis refer to the techniques used measuring the closeness of the relationship between variables. "Correlation analysis deals with the association between two or more variables." 1. Positive and Negative Correlation: whether correlation is positive or negative would depend upon the direction of change. i.e if as one variable is increasing the other, on an average is also increasing or if one variable is decreasing the other, on an average is also decreasing, correlation said to be positive. If on the other hand one variable is increasing, the other is decreasing or vice versa it is said to be negative correlation. e.g 1. Positive correlation: X : 10   12   15   18 20                                                      X:  80   70    60   40   30 Y : 15    20   22  25 37                                                      Y:  50   44    30   20   10 2. Negative Correlation: X:    20   30    40   60    80