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

Concept of correlation - Essay ExampleAn example of a perfectly unequivocal correlation can be supply of good with respect to the price of good. As the price increase, the suppliers tend to supply more of the product.This graph above shows that the variables atomic number 18 perfectly negatively correlated as an increase in the value of the independent variable causes the value of dependent variable to decrease by the lean 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(prenominal) of the product.The correlation between two variables is weak if they atomic number 18 close to zero whether they are negative or positive. GDP and interest rates of the economy are correlated but the magnitude of correlation is very low. On the other side, there might be a strong correlation between fastball and lung cancer.1) As per the government policy, the federal governme nt subsidizes or gives free school lunches to students whose family income is below a certain level, usually close to the poverty level. So high the number of eligible students for lunch, higher will be the amount of funding received by the schoolWidgeCorp can use this correlation analysis to in effect market its cold drinks in public schools. Since we know that there is a positive correlation between free school lunches and poverty level because WidgeCorp can approach the government to offer quality foods at affordable rates. There will be a stiff competition on the buttocks of price therefore as a case of bulk discounting WidgeCorp should offer quality foods to Government on competitive