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!

Photo by iMattSmart on Unsplash

#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...

Set of data

A relationship between two data sets

A family relative

Chart of information

#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.

Byte Author Uploaded Image

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:

When there is no relation between data

When data sets move apart

When data sets move together

When someone is kind to you

#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.

Byte Author Uploaded Image

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:

When there is no relation between data

When data values move together

When data values move apart

When someone is cruel to you

Summary

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 :)

Photo by Syed Ahmad on Unsplash

License:

Your feedback matters to us.

This Byte helped me better understand the topic.

I feel confident that I can apply what I learned.

I would recommend this Byte.

Join Our Community

Connect with other motivated learners that are switching their social media time to Rumie.

This Byte has been authored by

LB

Latoya Buckham

Success if the Key

KL
FQ

Fatima Qizilbash

Associate Director of Talent Acquisition & Attraction

MT

Morgan Toane

Certified Coach, Facilitator and EQ Practitioner