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Research on Correlation

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Miss Roue        

Research on Correlation

What is correlation?

This measures the relationship that exists between two or more variables. A positive (or direct) correlation is said to exist where one variable increases along with the other, and vice versa (e.g. as disposable income per head rises, then so too does expenditure on food products). A negative (or indirect) correlation is said to exist where one variable declines as the other rises, and vice versa (e.g. as the price of new cars falls, demand for new cars will tend to rise).

Why do Businesses use it?

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How useful is it to a business and why is it important?

Trends can be seen if the research has been taken over a period of time. Graphs can be developed in order help predict future highs and lows. The reliability of the data source needs to be taken into consideration because a very bias, distorted or even out-dated piece of information could prove a huge problem in determine the accuracy of the trends.

If the data source is as accurate as possible and enough time and effort has

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n class="c2 c3">Positive/Negative Correlation

A relationship in which the values of two variables increase (Positive) or decrease (Negative) together:


Positive                                                        Negative

Nitesh Patel                Summer Work

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