Question

what does limited degrees of correlation mean? when does it become high, moderate or low?

Answer 1

Through the coefficient of correlation, we can measure the degree or extent of the correlation between two variables. On the basis of the coefficient of correlation we can also determine whether the correlation is positive or negative and also its degree or extent.

Perfect correlation: If two variables changes in the same direction and in the same proportion, the correlation between the two is perfect positive. According to Karl Pearson the coefficient of correlation in this case is +1. On the other hand if the variables change in the opposite direction and in the same proportion, the correlation is perfect negative. its coefficient of correlation is -1. In practice we rarely come across these types of correlations.Absence of correlation: If two series of two variables exhibit no relations between them or change in variable does not lead to a change in the other variable, then we can firmly say that there is no correlation or absurd correlation between the two variables. In such a case the coefficient of correlation is 0. Limited degrees of correlation: If two variables are not perfectly correlated or is there a perfect absence of correlation, then we term the correlation as Limited correlation. It may be positive, negative or zero but lies with the limits ± 1.

High degree, moderate degree or low degree are the three categories of this kind of correlation. The following table reveals the effect ( or degree ) of coefficient or correlation.

DegreesPositiveNegativeAbsence of correlation ®Zero0Perfect correlation ®+ 1-1High degree ®+ 0.75 to + 1- 0.75 to -1Moderate degree ®+ 0.25 to + 0.75- 0.25 to - 0.75Low degree ®0 to 0.250 to - 0.25

Answer 2

Answer:

There are five degrees of correlation:

1. Positive correlation: When all the points are found around straight line it is known as positive correlation.
2. Negative correlation: When all the points are found on downward sloping curve very near, it is called as negative correlation.
3. No correlation: When points are scattered in different-different directions then it is a case of no correlation or zero correlation.
4. Perfect positive correlation: When all the points are falling on upward sloping straight line it is called as perfect positive correlation.
5. Perfect negative correlation: When all the points are falling on downward sloping straight curve it is called as perfect negative correlation.

• High Correlation - 1 - 0.75
• Moderate correlation - 0.75 - 0.25
• Low correlation - 0.25 - 0