Karl Pearson’s Correlation:
To deduce the degree of correlation between two variables, Karl Pearson deduced a formula in 1896.
To break this up, it means ” Pearson’s Correlation co-efficient” is :-
- useful to measure how strong a relationship is between two variables,
- commonly used in linear regression.
..basically it concerns with collection, manipulation, management, organization and analysis of numeric data.
What is it used for ?
Much used for data fitting in all sciences, to tell how related two or more variables under consideration are:-
Ok, alright !! When you,
- Want to see relation between your diet and weight? ….Use Karl Pearson’s correlation
This is a positive relationship as variables change in same direction. So is, the relationship between your height and weight (yes !!…I just judged you.) and also between your diet and weight
- Want to see relation between Price and quantity in demand ? ….Use Karl Pearson’s correlation
This is a negative relationship as variables change in opposite direction. So is, alcohol consumption and driving ability.