Correlation — Syllabus
ICSE · Class 11 · Economics
What Correlation covers in ICSE Class 11 Economics: 4 topics, for the 2026-27 session. Part of the ICSE Class 11 Economics syllabus.
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Topics in Correlation
1. Meaning, Nature, and Importance of Correlation
- Correlation is the study of how variables move together.
- When a change in one variable is accompanied by a change in another, the variables are correlated.
- Correlation analysis of two variables is called bivariate analysis.
2. Types and Degrees of Correlation
- Correlation is classified in three ways: by direction, by number of variables, and by linearity.
- By direction, correlation may be positive or negative.
- Positive correlation is also called direct correlation.
3. Methods of Measuring Correlation
- The main methods are scatter diagram, Karl Pearson's coefficient of correlation, and rank correlation.
- Scatter diagram is a non-mathematical method.
- Karl Pearson's coefficient of correlation is a mathematical method.
4. Karl Pearson's Coefficient of Correlation
- Karl Pearson gave the Product Moment Correlation method in 1890.
- The coefficient is denoted by r.
- Its value always lies between -1 and +1.
Key Concepts
Central concept: Correlation as the statistical study of relationship between variables
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