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  • Correlation analysis studies the association between two variables.
  • Scatter diagrams give a visual presentation of the nature of relationship between two variables.
  • Karl Pearson's coefficient of correlation r measures numerically only linear relationship between two variables. r lies between -1 and 1.
  • When the variables cannot be measured precisely Spearman's rank correlation can be used to measure the linear relationship numerically.
  • Repeated ranks need correction factors.
  • Correlation does not mean causation. It only means covariation

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