G

Z
Types of Correlation
Positive Correlation

P os itive correl ation occurs w hen an incre as e in one variabl e

incr eas es the value in anothe r.

The line corres ponding to the s cat ter plo t is an increas ing line.

Negative Correlation

N egat ive corre lat ion occurs w hen an in creas e in one variab le
decr eas es the va lue of anoth er.

The line corres ponding to the s cat ter plo t is a decreas ing line.

No Correlation

N o correl ation occurs w hen there is no linear dependenc y

betw e en the variabl es .

Perfect Correlation

P erfec t correl ation occurs w hen there is a funciona l dependen c y

betw e en the variabl es .

In this cas e all the points are in a s traight line.

Strong Correlation

A corre lat ion is s tronger the clos er the points are locat ed to one
anoth er on the line.

Weak Correlation

A corre lat ion is w eaker th e farther apart the points are loca ted to
one another on the line.

Subject

Functional Relat.

Statistical Relat.

Arithmetic Mean

Variance

Standard Deviation

Covariance

Correlation

Correl. Coefficient

Positive Correlation

Negative Correlation

Strong Correlation

Weak Correlation

Perfect Correlation

No Correlation

Linear Regression

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