CBSE Notes for Statistics for Economics Chapter 7
There are many situations in our daily life where we know from experience, the direct association between certain variables but we can’t put a certain measure to it. For example, you know that the chances of you going out to watch a newly released movie is directly associated with the number of friends who go with you because the more the merrier!
But there are many other factors too, like your interest in that movie, your budget etc. Thus to analyze the situation in detail, you need to note down your similar past experiences and form a sort of distribution from that data. It is at this point that you require a Correlation Coefficient, which will now provide you with a value, based on which you can calculate the possibility of you not going for the movie this time if your friends don’t turn up! Karl Pearson’s Coefficient of Correlation is one such type of parameter which we’ll be studying in this section. Please refer Statistics for Economics Class 11 Notes Chapter 7 for more information.
CBSE Revision Notes 