What Is Correlation?

What Is Correlation? Video Lecture | Economics Class 11 - Commerce

Economics Class 11

75 videos|274 docs|46 tests

FAQs on What Is Correlation? Video Lecture - Economics Class 11 - Commerce

 1. What is correlation in statistics?
Ans. Correlation in statistics refers to the degree to which two or more variables are related or move together. It measures the strength and direction of a linear relationship between variables.
 2. How is correlation coefficient calculated?
Ans. The correlation coefficient is calculated by dividing the covariance of the two variables by the product of their standard deviations. It ranges from -1 to 1, where -1 indicates a perfect negative correlation, 0 indicates no correlation, and 1 indicates a perfect positive correlation.
 3. What is the difference between positive and negative correlation?
Ans. In positive correlation, as one variable increases, the other variable also increases. In negative correlation, as one variable increases, the other variable decreases. A correlation coefficient close to 1 indicates a strong positive correlation, while a coefficient close to -1 indicates a strong negative correlation.
 4. How is correlation used in data analysis?
Ans. Correlation is used in data analysis to determine if there is a relationship between variables. It helps in understanding how changes in one variable are associated with changes in another variable, and can be used to make predictions or decisions based on the strength of the relationship.
 5. Can correlation imply causation?
Ans. No, correlation does not imply causation. Just because two variables are correlated does not mean that one variable causes the other to change. It is important to consider other factors and conduct further research to establish a causal relationship between variables.

Economics Class 11

75 videos|274 docs|46 tests

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