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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) and vice-versa. 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 and sam magnitude.
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, that is, if X moves higher then Y moves higher and if X moves to a lower value, then so does Y.
- 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.
Cc = 0 indicates no significant relationship.
Thus, a positive correlation indicates that X and Y change in the same direction.