💖 WELCOME TO YOU INTRODUCTION Correlation is very useful for economists and mainly for psychologists to study relationship between TWO variables. we not only measure the existing relationship but also we can measure the importance of relationship between them.  Concept of correlation OR Meaning of correlation Correlation refers to the relationship between two variables is known as correlation. or in other words (It refers to the relation between an independent variable and a dependent variable). So, It helps to analyse the relationship between two or more variables.    It is a statistical technique which measures the quantitative relationship between different variables.  for example, relationship between : Price and demand Price and supply Demand and other determinants or determinant variables..... Correlation compulsorily lies between +1 and -1 only. that means, if the correlation value (Coefficient value) is more than +1 or -1, it is invalid or wrong.  Definitions of correlation A.

WELCOME TO YOU I heartily welcome you to read this post on few important concepts related to "Statistics" in economics.  ------------------------------ Introduction to the reader Namaste, before understanding the concepts in statistics (stats) let us understand the Meaning, need, requirement and importance of statistics in Economics.  Statistics The word statistics has been derived from the Latin word "Status" and Italian word "Statista" which means a Political State.  The word "statistics" is used in two ways: Singular plural. Singular Singular means collection, classification and presentation of the data.  Plural Plural sense statistics means the data. It refers to all the statistics as a single data. Importance of statistics in economics Statistical data is useful to understand the economic problems.  With the help of statistics we can analyse the nature of many economic problems like poverty, unemployment, etc.  The increasing importance of s