CBSE BoardEnglish MediumSTD 11 CommerceEconomicsCorrelation3 Marks
Question
Discuss importance and utility of correlation.
✓
Answer
The study of correlation is of great significance because of reasons given below:
To understand relationship between two or more variables: Correlation is very helpful when we want to study relationship between two or more variables.
To find dependence: Correlation also helps in finding if one variable is dependent on other or not.
Provides base for Regression Analysis: When two variables are correlated then the value of one variable can be estimated given the value of another variable using regression equations.
Helps in decision making: It helps in taking important decisions to a business man, government and sociologists.
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