Question

The concept of statistics where we look at the amount and type of relationship that exists between two variables is the correlation. We can consider whether or how two variables are related to each other and how that relationship functions. For example, if you think that the more you study, the higher your grades will be, you are using correlation and prediction. You may have observed that as the number of hours you spend studying increases, so do your overall grades. When two variables, such as “time studying” and “grades” both increase at a similar rate, they are related or “correlated.” In your initial post, please provide an example of correlation between two variables and state whether the variables are positively or negatively correlated. Be sure your initial post is at least 150 words.

Answer 1

one of the most common being the relationship between demand and price.

The relationship between demand and price is an example of causation as well as positive correlation. An increase in demand causes the corresponding increase in price; the price of a good or service increases precisely because more consumers want it and therefore are willing to pay more for it. When demand decreases, that means fewer people want a product and sellers must lower its price to entice people to buy it.

here as the demand increases the price is also increases means there is positive correlation between the two variables.

When the two variable increases at similar rate then they are positively correlated.