The correlation may be defined as the degree of association between two or more variables. Degree of relationship or association may be stated as a single number which is representative of the closeness of two variables. For example the amount of rainfall and the increase in agricultural production or agricultural output has some sort of relationship and that relationship is defined as the correlation between the two variables. There are basically five different degrees of correlation between two variables they are as follows: a positive high degree of correlation, a positive low degree of correlation, a negative high degree of correlation, a negative low degree of correlation and no correlation. The value of correlation coefficient varies between +1 and -1 that is the correlation coefficient takes the value between +1 and -1. +1 indicates perfect positive correlation and -1 indicates the perfect negative correlation.   

Formula for calculating correlation coefficient is as follows:

 

 

 

N    = number of pairs of scores

Σxy= sum of the products of paired scores

Σx= sum of X scores

Σy= sum of Y scores

Σx2   = sum of squared x scores

Σy2   = sum of squared y scores

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