Correlation — Economics STD 11 Commerce — Question

Positive Correlation: When X and Y are related in such a way that with increase in X, Y also increases and vice versa, it is called positive correlation. In other words, when both variables move in same direction, then variables are said to be positively related. For example, as height increases, weight also increases, so height and weight are positively related variables.

X	Y
1	2
2	4
3	6
4	8
5	10

Negative correlation: When X and Y are related in such a way that with increase in X, Y decreases and vice versa, it is called negative correlation. In other words, when both variables move in opposite direction, then variables are said to be negatively related. For example, as income increases, demand for poor quality goods decreases, so income and poor quality goods are negatively related variables.

X	Y
1	10
2	8
3	6
4	4
5	2