Defining the meaning of the term correlation - Essay Example

In addition, the established concepts are often applied in a controlled environment or measured through modeling. Basically, such process is composed of the determination of the different relationships of the involved variables to be able to achieve guiding parameters for future application. The study of the interrelationship of the different variables within a system can be considered as the process of correlation (Marcoulides 1998). Correlation is based on the interaction between variables.

This can be attributed to determination of the possible strategies needed to be undertaken to improve a particular field of knowledge, which for the objectives of the study undertaken is based on the concepts of business. Correlation studies can be considered as a form of statistical analysis of data to determine the type of relationships the variables under study have. There are different types of correlation namely positive, negative and non-correlation (Ezekiel and Fox, 1959). The positive correlation, which has +1 coefficient of correlation, can be translated as the parallel movement or behavior of 2 variables.

This means that when 1 variable increase in value, 1 or more variables with positive correlation also increases on a corresponding value. The negative correlation on the other hand has the coefficient of -1 and expresses a decrease in one variable for every increase in another based on a predetermined proportion of change. The third type of correlation is the zero or non-correlation. This can be attributed to cases wherein the variables under study have no effect in the changes occurring to another.

These principles are applied in terms of the data gathered specifically in empirical studies and modeling specifically in the business management (Ezekiel and Fox, 1959). Based on the presentation of the different concepts that are related to correlation, it can be considered as