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    				| 1. | Explain the concept of correlation .what is the basic difference between :(i) Linear and non- linear correlation, and (ii) positive and negative correlation . | 
| Answer» The statistical technique that studies the degree of relationships is called technique of correlation. For example, increase in level of employment results in increase in output. I) When two variable changes in a constant proportion, it is called a linear correlation, whereas, When the two variables do not change in any constant proportion, the relationship is said to be non-linear. II) Correlation is perfectly positive when proportional change in two variables is in the same direction. Whereas, correlation is perfectly negative when proportional change in two variables is in the opposite direction. | |