Define positive and negative correlation with examples?

Answer»

1. Positive correlation:

When two variables move in the same direction that is when one increases the other also increases and when one decreases the other also decreases, such a relationship is called positive correlation for example the relation between price and supply. Increase in the value of both variables:

X: 10	20	30	40
Y: 100	150	200	250

2. Negative correlation:

When two variables change in different direction, it is called negative correlation for example relationship between price and demand when prices rise other things remaining constant, demand falls and when price falls demand rises.

X :1	2	3	4
Y :5	4	2	1

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