![]() ► When demand increases, price of the product increases (at same supply level). ► With the growth of the company, the market value of company stocks increase. ► If I walk more, I will burn more calories. Examples of Positive Correlation in Real Life ![]() However, there are other variables that cannot be ruled out, such as the level of concentration of the students, which can influence the scores. ![]() The inference that more the hours you study, better the score, might hold true, if it is assumed that the IQ level of all the students is similar, on an average. Though the trend here observed is positive, there are high chances that the IQ level of that student can play an important contributing factor too. This data is based on the statistics of 20 students in a class with different IQ levels. ► However, this survey method has its own limitations. We try to compare the relationship between the number of hours the student has devoted in studying, and his corresponding score. The researcher then records the marks scored by the students in the test. The researcher picks up 20 students from a class, and records the number of hours they studied for the test. Let ‘x’ be the number of hours that a student has studied, and ‘y’ be his score in a test (maximum marks: 120). The example will help you understand what is positive correlation. Let’s take a hypothetical example, where a researcher is trying to study the relationship between two variables, namely ‘x’ and ‘y’. Correlation is used in many fields, such as mathematics, statistics, economics, psychology, etc. Positive correlation implies there is a positive relationship between the two variables, i.e., when the value of one variable increases, the value of other variable also increases, and the opposite happens when the value of one variable decreases. A positively inclining relationship is nothing but positive correlation. Correlation studies the relationship between two variables, and its coefficient can range from -1 to 1.
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