What is indicated by a positive value for a correlation?
We use correlation to measure how closely our input (x) increases and decreases with output (y). The value of correlation is positive, if they are in sync, or increase together and fall together.
Answer: A positive correlation indicates that the two variables X and Y change in the same direction.
A negative correlation is just the opposite of the normal correlation coefficient.
A positive value for a correlation indicates:
- Correlation has a positive value.
- There is an association or relation between the 2 variables, supposedly X and Y.
- A little unit of change in variable X causes (may) impact in the Y variable.
- If the correlation coefficient is positive indicating a relationship between X and Y variables and the value lies between 0 to +1.
Cc value > 0.5 is considered a significant relationship between X and Y variables.
The negative value of the correlation is noticed due to other impact variables on X and Y variables. A scatter diagram is drawn shows linear line points scattered around the line.
Cc = 0 indicates no significant relationship.