2. Definition
⢠Tendency of two or more groups or series of
items to vary together directly or inversely.
⢠Analysis of association b/n two variables.
⢠Eg; price & supply
3. Different kinds of correlation
⢠Positive & negative
⢠Linear & non â linear
⢠Simple , multiple & partial
4. Positive & negative
⢠+ve - value of two variables moves in same
direction.
⢠Eg; price& supply
⢠-ve- value of two variables moves in opposite
direction.
⢠Eg; price& demand
7. Linear and non- linear
⢠Linear âconst ratio of change exist b/n two
variables.
⢠Eg ;
X : 20 25 30 35 40
y : 30 37.5 45 52.5 60
ratio 2:3.
Non-linear-no const ratio
8. Simple, partial & multiple
⢠Simple â only two variables
⢠Multiple-degree of association b/n one
variable to others.
⢠Eg ;yield with both rainfall & temperature.
⢠Partial ârelating 2 variables assuming one as
const.
⢠Eg âyield & rain fall (temperature const).