Descriptive Statistics: Two Variables with Largest Correlation

Descriptive Statistics: Two Variables with Largest Correlation
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Descriptive Statistics: Two Variables with Largest Correlation
In statistics, correlation will refer to a technique used in measuring as well as describing the connection that exists between two variables (Schober, Boer, & Schwarte, 2018). The relationship thereof is governed by the metric of observation rather than manipulation. A positive correlation indicates that the variables elicit parallel responses while in the case of a negative correlation, the variables thereof have opposing patterns in the sense that when one increases the other decreases. Correlation conveys the direction, form and degree of the correlation that exists between the two variables. In the quest to ascertain the correlation factor among variables, supply and demand appear to have the largest correlation. An apparent example of this assertion is the fact that supply can remain constant amidst price fluctuations as a result of rising demand.
On the other hand, there are circumstances that can result in parallel association of demand and supply meaning that they move in one direction. An example of this predisposition can be found in the transport industry. In circumstances that fuel prices increase because of inadequate resources, then a position in the marketplace is created where airline tickets rise too. Eventually, the consumer experiences the impact of the cost leading to a positive correlation between the two economic concepts. There are several dynamics that are in the marketplace, which can result in the ensuing association between demand and supply. In other terms, the law of demand and supply can help explain this relationship that exists between these two concepts.
The law of demand and supply endears to explain the interests that exist between the ...