Correlation: Positive Correlation

Positive Correlation: Consider two variables, Price of a commodity and its demand. It is a familiar scenario we encounter that as the price of the commodity decreases, its demand increases and as the price of the commodity increases, mostly people would not like to buy that commodity in other words the demand decreases. So, we can say that these two variables are correlated or there is a Correlation between the two variables. In a different type of correlation like between the two variables; income earned by a person and expenditure, we can see that the two variables increase or decrease together.

 Like, as the income increases one tends to spend more and vice versa. This means, if the change in one variable is accompanied by the change in the other then we can say there exists a correlation between the two variables.  In simple words, Correlation tells the relationship between the two variables. It helps to understand whether the relationship between the variables is positive or negative and also the strength of the relationship. In the case of income of a person and the amount he spends or his expenditure, the relationship we see is that both rise or fall together in the same direction, that is both either increase or decrease together. This type of correlation is called Positive Correlation. In math statistics, the perfect positive correlation is represented by the value +1.00, which is the correlation coefficient.

Positive Correlation Definition: We can Define Positive Correlation as the direct relationship or association between two variables which is in the same direction. When one increases the other also increases or vice versa.  In statistics, a positive correlation is represented by a correlation coefficient which is between 0 and +1.

What is Positive Correlation
A Positive Correlation is a Correlation in which the greater values of one variable are associated with the greater values of the other and lower values of one variable are associated with the lower values of the other. The correlation coefficient of a positive correlation is between 0 and +1

Positive Correlation Examples
Let us consider some examples of Positive Correlation.
A person with more knowledge and degrees of education earns more income. So, we can say, if years of education and income earned are taken as two variables, then the correlation between them is a Positive correlation as the relationship is in the same direction.

There is a Positive Correlation between the amount of exercise one does and the calories he burn. The more exercise one does the more calories he burns and he is fit and healthy!