## Understanding correlation can help you predict the future!

• Are you looking to motivate people?

• Do you want to be become more effective in sales and marketing?

• Do you want to unlock the secrets of human behaviour?

If you answered yes to any of these questions, understanding correlation is KEY!

## #1: What Are Correlations?

"In the broadest sense, correlation is any statistical association, though it commonly refers to the degree to which a pair of variables are related."

Watch this video to learn more:

#### Quiz

1: A correlation is a...

## #2: Positive Correlations

When there is a positive correlation, when one set of data values increase, so does the other.

Example: As the weather gets hotter, ice cream sales increase.

More examples of positive correlations:

• As your level of education increases, so does the likelihood of earning a higher salary.

• The harder you work, the more progress you'll achieve.

#### Quiz

A positive correlation is:

## #3: Negative Correlations

When there is a negative correlation, when one set of data values increases, the other set decreases.

Example: The more people who ride the bus, the fewer number of empty seats there are.

More examples of negative correlations:

• As the cost of producing something decreases, the number you can produce increases.

• The more payments you make on a loan, the less money you'll owe.

#### Quiz

A negative correlation is:

## Take Action

Great work! Remember, when thinking about correlations:

1. It's about the relationship between two sets of variables.

2. Positive = data moving together. Negative = data moving apart.

Try it yourself: When you're trying to influence or predict people's behaviour, ask yourself "What are the factors that correlate to increase or decrease in that behaviour?"

When in doubt, just think about a sunny day and eating an ice cream :)

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