PPT 12.1 - Correlation CA Foundation Notes | EduRev

CA Foundation: PPT 12.1 - Correlation CA Foundation Notes | EduRev

The document PPT 12.1 - Correlation CA Foundation Notes | EduRev is a part of the CA Foundation Course Business Mathematics and Logical Reasoning & Statistics.
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 Page 1


CPT Section D, Quantitative Aptitude, Chapter 12 
CA. Dharmendra Gupta 
Page 2


CPT Section D, Quantitative Aptitude, Chapter 12 
CA. Dharmendra Gupta 
Correlation is the 
relationship that exists 
between two or more 
variables. 
If two variables are 
related to each other in 
such a way that change 
increases a 
corresponding change in 
other, then variables are 
said to be correlated.  
Page 3


CPT Section D, Quantitative Aptitude, Chapter 12 
CA. Dharmendra Gupta 
Correlation is the 
relationship that exists 
between two or more 
variables. 
If two variables are 
related to each other in 
such a way that change 
increases a 
corresponding change in 
other, then variables are 
said to be correlated.  
Relationship between the heights and weights.  
Relationship between the quantum of rainfall and the yield 
of wheat. 
Relationship between the Price and demand of 
commodity. 
Relationship between the dose of insulin and blood sugar. 
Page 4


CPT Section D, Quantitative Aptitude, Chapter 12 
CA. Dharmendra Gupta 
Correlation is the 
relationship that exists 
between two or more 
variables. 
If two variables are 
related to each other in 
such a way that change 
increases a 
corresponding change in 
other, then variables are 
said to be correlated.  
Relationship between the heights and weights.  
Relationship between the quantum of rainfall and the yield 
of wheat. 
Relationship between the Price and demand of 
commodity. 
Relationship between the dose of insulin and blood sugar. 
Economic theory and business 
studies relationship between 
variables like price and quantity 
demand. 
Correlation analysis helps in 
deriving precisely the degree and 
the direction of such 
relationships. 
Page 5


CPT Section D, Quantitative Aptitude, Chapter 12 
CA. Dharmendra Gupta 
Correlation is the 
relationship that exists 
between two or more 
variables. 
If two variables are 
related to each other in 
such a way that change 
increases a 
corresponding change in 
other, then variables are 
said to be correlated.  
Relationship between the heights and weights.  
Relationship between the quantum of rainfall and the yield 
of wheat. 
Relationship between the Price and demand of 
commodity. 
Relationship between the dose of insulin and blood sugar. 
Economic theory and business 
studies relationship between 
variables like price and quantity 
demand. 
Correlation analysis helps in 
deriving precisely the degree and 
the direction of such 
relationships. 
The effect of 
correlation is to 
reduce the range of 
uncertainty of our 
prediction . 
The prediction based 
on correlation 
analysis will more 
reliable and near to 
reality. 
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