Concept of correlation Essay Example | Topics and Well Written Essays - 500 words

Concept of correlation - Essay ExampleAn poser of a perfectly positive correlation can be supply of good with respect to the expense of good. As the price increase, the suppliers tend to supply more of the product.This graph above shows that the versatiles are perfectly negatively correlated as an increase in the value of the independent variable causes the value of dependent variable to decrease by the slope of the equation. An example of a perfectly negative correlation can be the demand of good with respect to the price of good. As the price increase, the consumers tend to less of the product.The correlation surrounded by two variables is weak if they are secretive to zero whether they are negative or positive. GDP and recreate rates of the economy are correlated but the magnitude of correlation is very low. On the opposite side, there might be a strong correlation between smoking and lung cancer.1) As per the authorities policy, the federal government subsidizes or gives free enlighten lunches to students whose family income is below a certain level, usually close to the poverty level. So higher the number of eligible students for lunch, higher will be the amount of sustenance received by the schoolWidgeCorp can use this correlation analysis to effectively market its cold-blooded drinks in public schools. Since we know that there is a positive correlation between free school lunches and poverty level hence WidgeCorp can approach the government to offer quality foods at inexpensive rates. There will be a stiff competition on the basis of price therefore as a case of bulk discounting WidgeCorp should offer quality foods to Government on competitive