LINEAR CORRELATION — Statistics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceStatisticsLINEAR CORRELATION3 Marks
Question
Explain the cause and effect relationship.
✓
Answer
In the begining of the study of correlation between two variables, we make assumption that there is relation of cause and effect between two variables.
In same cases even though there is no relation of cause and effect between two variables, variable values are fluctuated.
For that some other factors are responsible.
Such a correlation is called meaningless correlation.
Thus, for appropriate representation of correlation co-efficient caution about cause and effect between two variables is necessary.
Illustrations :
$(1)$ If age of person is variable $X$ and his weight is variable $Y.$
Here, weight increases because age increases.
It indicates that weight is effect of age, which is cause.
$(2)$ When the income of a person remains more or less or same, if his expenditure increases, saving decreases and if his expenditure decreases, saving increases.
Here, saving is the effect and expenditure is a cause.
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