Correlation and its significance.

 Statistics is the science of the collection, organization, analysis, interpretation and presentation of data.It plays an important role in every field of economy. It has an important role in determining in pricing, supplying production etc so a successful manager must be expert of Statistics to perform the function of business by an effective and efficient way. It also plays an important role in decision making. It also help to know the need, want, desire if customers.He also knows well what to produce with the help of Statistics. 

There are many tools, techniques of Statistics.These are Correlation, Regression, Index number Time series, Probability etc. Every technique has its own value and application. Among all Correlation is one of the first techniques that is used to know the relationship of two variances. 

Correlation- The method in which we analyse the relationship between two or more than two variables this process is called Correlation.

In other words we can say that it is used to test relationship between two or more than two quantitative variables.

Significance- There are many significance of Correlation. These significance are as below-

1.It finds a single figure to measure the degree of relationship between two variables.

2.It explains economic behaviour of variance.

3.It helps to perform the function of business by effective efficient way, These function may br Production, demand, Supply, Price etc.

4,It is the base of other technique like Regression.

5.It helps in decision making.