Positive Negative Correlation

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Positive and Negative Correlation.

 Whether correlation is positive (direct) or negative (inverse) would depend upon the direction of change of the variables. If both the variables are varying in the same direction. i.e., if as one variable is increasing the other on an average is also increasing or, if as one variable is decreasing the other on an average is also decreasing, correlation is said to be positive. If, on the other hand, the variables are varying in opposite directions, i.e., as one variable is increasing the other is decreasing or vice versa, correlation is said to be negative. The following examples would illustrate the difference between positive and negative correlation.

I. POSITIVE CORRELATION

X   :    10    12    15    18    20    X:    80    70    60    40    30

Y   :    15    20    22    25    37    Y:    50    45    30    20    10

II. NEGATIVE CORRELATION

X   :    20        30    40    60    80    X:     100    90    60    40    30

Y   :    40        30    22    15    10    Y:       10    20    30    40    50

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