Question

Define correlation. explain various types of correlation with suitable

e.g

Answer 1

correlation is the average relationship between two or more variables. When the change in one variable makes or causes a change in other variable then there is a correlation between these two variables.

Types of Correlation



In Research Methodology of the Management, Correlation is broadly classified into six types as follows :

(1) Positive Correlation
(2) Negative Correlation
(3) Perfectly Positive Correlation
(4) Perfectly Negative Correlation
(5) Zero Correlation
(6) Linear Correlation

Positive Correlation
For examplethe training and performance of employees in a company.
Negative Correlation
For example, the relationship betwwen price and demand
Perfect Positive Correlation
When there is a change in one variable, and if there is equal proportion of change in the other variable say Y in the same direction, 
then these two variables are said to have a Perfect Positive Correlation.
Perfectly Negative Correlation
Between two variables X and Y, if the change in X causes the same amount of change in Y in equal proportion but in opposite direction, 
then this correlation is called as Perfectly Negative Correlation.
Zero Correlation
When the two variables are independent and the change in one variable has no effect in other variable,
then the correlation between these two variable is known as Zero Correlation.
Linear Correlation
If the quantum of change in one variable has a ratio of change in the quantum of change in the other variable then it is known as Linear correlation.