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# PPT - Correlation & Co-Efficient B Com Notes | EduRev

## B Com : PPT - Correlation & Co-Efficient B Com Notes | EduRev

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Coefficient of correlation
Page 2

Coefficient of correlation
A statistic representing how closely two
variables co-vary; it can vary from -1
(perfect negative correlation) through 0
(no correlation) to +1 (perfect positive
correlation).
Page 3

Coefficient of correlation
A statistic representing how closely two
variables co-vary; it can vary from -1
(perfect negative correlation) through 0
(no correlation) to +1 (perfect positive
correlation).
• The correlation coefficient, denoted by r, is a
measure of the strength of the straight-line or
linear relationship between two variables. The
correlation coefficient takes on values ranging
between +1 and -1.
• The quantity r, called the linear correlation
coefficient, measures the strength and the
direction of a linear relationship between two
variables
Page 4

Coefficient of correlation
A statistic representing how closely two
variables co-vary; it can vary from -1
(perfect negative correlation) through 0
(no correlation) to +1 (perfect positive
correlation).
• The correlation coefficient, denoted by r, is a
measure of the strength of the straight-line or
linear relationship between two variables. The
correlation coefficient takes on values ranging
between +1 and -1.
• The quantity r, called the linear correlation
coefficient, measures the strength and the
direction of a linear relationship between two
variables
Type of correlation coefficient
1. Perfect Positive correlation
2. Perfect negative correlation
3. Moderately Positive correlation
4. Moderate negative correlation
5. Absolute no correlation
Page 5

Coefficient of correlation
A statistic representing how closely two
variables co-vary; it can vary from -1
(perfect negative correlation) through 0
(no correlation) to +1 (perfect positive
correlation).
• The correlation coefficient, denoted by r, is a
measure of the strength of the straight-line or
linear relationship between two variables. The
correlation coefficient takes on values ranging
between +1 and -1.
• The quantity r, called the linear correlation
coefficient, measures the strength and the
direction of a linear relationship between two
variables
Type of correlation coefficient
1. Perfect Positive correlation
2. Perfect negative correlation
3. Moderately Positive correlation
4. Moderate negative correlation
5. Absolute no correlation
Perfect Positive correlation
• If x and y have a strong positive linear correlation,
r is close to +1. An r value of exactly +1
indicates a perfect positive fit. Positive values
indicate a relationship between x and y variables
such that as values for x increases, values for y
also increase.
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