Correlation — Economics STD 11 Commerce — Question

A perfect positive correlation is given the value of 1. A perfect negative correlation is given the value of -1. If there is absolutely no correlation present the value given is 0. The closer the number is to 1 or -1, the stronger the correlation, or the stronger the relationship between the variables. The closer the number is to 0, the weaker the correlation. So something that seems to kind of correlate in a positive direction might have a value of 0.67, whereas something with an extremely weak negative correlation might have the value - 21.
An example of a situation where you might find a perfect positive correlation would be when every time that "x" number of people go, "y" amount of money is spent on tickets without variation. An example of a situation where you might find a perfect negative correlation would be if with every increase in X, same amount of y decreases.
On the other hand, a situation where you might find a strong but not perfect positive correlation would be if you examined the number of hours students spent studying for an exam versus the grade received. This won't be a perfect correlation because two people could spend the same amount of time studying and get different grades. But in general the rule will hold true that as the amount of time studying increases so does the grade received.