Monday, 29 June 2020

Correlation


Correlation is the magnitude of relationship between two quantitative variables.

It is assumed that correlation follows a linear pattern and ranges from -1 to 1 where -1 means complete opposite relationship between the variables i.e. if one variable goes up then other variable goes down while correlation of 1 means both variables are moving together and in same direction.
Zero correlation means there is no relationship between two variables and movement of these variables is independent of one other.

Generally, a correlation (positive or negative) of 0.7 and above is consider as strong relationship, 0.5 to 0.7 as moderate and below 0.5 as non-significant.

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