February 29, 2012

Coefficient of correlation – An important point

If “r” between two variables is zero, it doesn’t mean that there is no relationship between the variables.

 

Justification:

 

Condition-1-If “r” is near +1, it represents positive correlation b/w two variables. If one will increase other will increase too and vice versa.

 

Condition-2-If “r” is near -1, it represents negative correlation b/w two variables. If one will increase other will decrease and vice versa.

 

Condition-3-If “r” is zero, it has neither positive nor negative correlation; there are relationships b/w two variables which are random, uncertain, weak correlation. We can’t say that there is no relationship if correlation is zero.

Last updated: March 19, 2014