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Quantitative Techniques-II

Notes
Figure 10.3: Perfect Positive Correlation (R = 1)

Very High Positive Correlation

If the variables X and Y are related to each other with a very high degree of positive relationship
then we can notice a graph as in Figure 10.4.

Figure 10.4: Very High Positive Correlation (R = Nearly +1)

Very Low Positive Correlation

If the variables X and Y are related to each other with a very low degree of positive relationship
then we can notice a graph as in Figure 10.5.

Figure 10.5: Very Low Positive Correlation (R = near to +0 )

10.2.2 Negative Correlation

Correlation is said to be negative or inverse if the variables deviate in the opposite direction i.e.,
if the increase (decrease) in the values of one variable results, on the average, in a corresponding
decrease (increase) in the values of the other variable.

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