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# PPT - Correlation Commerce Notes | EduRev

## Commerce : PPT - Correlation Commerce Notes | EduRev

``` Page 1

LOGO
CORRELATION
ANALYSIS
Page 2

LOGO
CORRELATION
ANALYSIS
Introduction
?Correlation a LINEAR association between two
random variables
?Correlation analysis show us how to determine
both the nature and strength of relationship
between two variables
?When variables are dependent on time correlation
is applied
?Correlation lies between +1 to -1
Page 3

LOGO
CORRELATION
ANALYSIS
Introduction
?Correlation a LINEAR association between two
random variables
?Correlation analysis show us how to determine
both the nature and strength of relationship
between two variables
?When variables are dependent on time correlation
is applied
?Correlation lies between +1 to -1
?A zero correlation indicates that there is no
relationship between the variables
?A correlation of –1 indicates a perfect negative
correlation
?A correlation of +1 indicates a perfect positive
correlation
Page 4

LOGO
CORRELATION
ANALYSIS
Introduction
?Correlation a LINEAR association between two
random variables
?Correlation analysis show us how to determine
both the nature and strength of relationship
between two variables
?When variables are dependent on time correlation
is applied
?Correlation lies between +1 to -1
?A zero correlation indicates that there is no
relationship between the variables
?A correlation of –1 indicates a perfect negative
correlation
?A correlation of +1 indicates a perfect positive
correlation
Types of Correlation
?There are three types of correlation
Types
Type 1 Type 2 Type 3
Page 5

LOGO
CORRELATION
ANALYSIS
Introduction
?Correlation a LINEAR association between two
random variables
?Correlation analysis show us how to determine
both the nature and strength of relationship
between two variables
?When variables are dependent on time correlation
is applied
?Correlation lies between +1 to -1
?A zero correlation indicates that there is no
relationship between the variables
?A correlation of –1 indicates a perfect negative
correlation
?A correlation of +1 indicates a perfect positive
correlation
Types of Correlation
?There are three types of correlation
Types
Type 1 Type 2 Type 3
Type1
Positive Negative No
Perfect
?If two related variables are such that when
one increases (decreases), the other also
increases (decreases).
?If two variables are such that when one
increases (decreases), the other decreases
(increases)
?If both the variables are independent
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