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Degree of Correlation ship
1.Perfect Correlation: When changes in two related variables are exactly proportional there is perfect correlation between them. In case the equal proportional changes are in the same direction there is perfect positive correlation between the two variables. On the other hand if equal proportional changes are in the reverse direction there is perfect negative correlation.
2.Absence of Correlation : In case no interdependence exists between the two variables or no relationship is found between the changes in them there is absence of correlation.
3.Limited Degree of Correlation: If there are unequal changes in the two variable in the same direction correlation is said to be limited positive and if there are unequal changes in the opposite direction the correlation is limited negative. The limited degree of correlation can be high moderate low.
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A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i
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