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Words: 5,345 | Submitted: Sun Sep 07 2008
... the other variable will move in lockstep, in the same direction. Alternatively, 'perfect' negative correlation means that if one variable moves in either direction the variable that is perfectly negatively correlated will move by an equal amount in the opposite direction, also when all the data points on a scatter diagram accumulate on a straight line we say that they are perfectly positively or negatively correlated. A correlation coefficient is a number between -1 and +1, which measures the degree to which two variables are linearly related. If there is perfect linear relationship with positive slope between the two variables, we have a correlation coefficient of +1; if there is positive correlation, whenever one variable has a high (low) value, so does the other. If there is a perfect linear relationship with negative slope between the two variables, we have a correlation coefficient of -1; if there is negative correlation, whenever ...
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