Examples on Positive and Inverse Correlation
Example 1: A researcher investigates the relationship between study hours and GPA. Upon analysis, the correlation coefficient is found to be 0.6. Interpret the correlation.
Solution:
A correlation coefficient of 0.6 suggests a strong positive correlation between study hours and GPA.
Hence, students who dedicate more time to studying tend to achieve higher GPAs.
Example 2: An economist examines the relationship between inflation and unemployment rates. The correlation coefficient obtained is -0.4. Explain the correlation.
Solution:
With a correlation coefficient of -0.4, there exists a moderate inverse correlation between inflation and unemployment rates.
This implies that as inflation increases, unemployment tends to decrease, and vice versa.
Positive and Inverse Correlation
Positive Correlation are relation between two variables that move in the same direction, whereas inverse correlation is a relation between two variables that move in opposite directions. In this article we have covered Correlation definition, Positive Correlation, Negative Correlation, Difference Between Positive and Inverse Correlation and others in detail.
Table of Content
- What is Correlation?
- Positive Correlation
- Inverse Correlation
- Difference Between Positive and Inverse Correlation
- Conclusion
- Examples on Positive and Inverse Correlation
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