Analysis: Correlation

  • Saiyidi Mat Roni
  • Margaret Kristin Merga
  • Julia Elizabeth Morris


Correlation indicates how two variables move together, and how strongly one variable moves in relation to other variable. For instance, a store owner observes that sales of soccer balls and sunglasses over a given period tend to increase and decrease together. When a correlation test is run and it is found that the correlation is statistically significant and strong, we can conclude that both items move together. This finding allows the store owner to manage the inventory level of sunglasses based on the trend in the sale of balls, or vice versa.


Spearman’s rho Kendall’s tau Cramer’s V 

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Saiyidi Mat Roni
    • 1
  • Margaret Kristin Merga
    • 2
  • Julia Elizabeth Morris
    • 3
  1. 1.School of Business and LawEdith Cowan UniversityJoondalupAustralia
  2. 2.School of EducationEdith Cowan UniversityPerthAustralia
  3. 3.School of EducationEdith Cowan UniversityMount LawleyAustralia

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