There are two types of correlations concluded between the variables. Both of them are explained below:
Positive Correlation: The different variables have a direct relationship or linear relationship; this is known as a positive correlation. In simple terms, the direct relationship describes the situation where the increase in one variable results in an increase in the second variable. Also, if the first variable goes down, the second variable goes down as well.
Negative Correlation: When the two different variables have an inverse relationship, it is known as a negative correlation. In other words, the inverse relationship between the variable refers to the situation when the increase in one variable decreases the amount of the other variable, and a decrease in one variable increases the quantity of the other.
Example of Prediction and Correlation
The analyzer gathered information about students studying in college by surveying and asking more than 50,000 students about their drinking habits and grades in the examination. The motive behind the survey was to study the correlation between the drinking behavior of students with their grades or performance in the college; that is, establishing the relationship between drinking behavior and studying behavior.
The above diagram shows the correlation between the consumption of drinks and the grades of the person. The correlation data concludes that the student consuming one drink received 10 GPA (grade-point average), the student consuming two drinks received 7 GPA, the student consuming three drinks received 5 GPA, and the student consuming four drinks received around 1 GPA. The data of the first variable (GPA) goes down as the consumption of the second variable (drink) increases. So, it can be concluded that the variables have a negative correlation, that is, an inverse relationship between them.
Prediction: Based on the correlation data, the analyzer predicts that the students who drink more alcohol get a lower grade-point average. If the student consumes more drinks, he/she gets a lower grade and has lower effectiveness in his/her studies. If the students consume fewer drinks, they get a higher GPA and have higher effectiveness in their studies.
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