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correlation 2 (i2tutorials)

What do you mean by correlation?

Correlation means the extent to which the two variables have a linear relationship with each other. It is a statistical technique which can show how strongly variables are related to each other. It is a scaled version of covariance and values ranges from -1 to +1.

It can be calculated as

correlation 1 (i2tutorials)

Ways to detect Correlation between variables:

  1. Graphical Method: The pattern of scatter plot indicates the relationship between variables. The relationship can be linear or non-linear.
  2. Scatter plot shows the relationship between two variables but does not indicates the strength of relationship amongst them.
  3. Non-graphical method: Build the correlation matrix to understand the strength between variables. Correlation varies between -1 and +1.
  4. -1: Perfect negative linear correlation
  5. +1: Perfect positive linear correlation
  6. 0: No correlation

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