# Scatter Diagram and Covariance

## Simple correlation is defined as the amount of similarity in direction and degree of variations in corresponding pairs of observations of two variables. The relation between two series or correlation has following aspects: Determining whether a relation exists, and measuring it (strength or magnitude). Determining the direction of the relation. Testing whether it is significant. Establishing the cause and effect relation, if any. Representation of joint observations of two variables on a graph for a given sample is called a scatter plot. Keywords: Independent variables, Moderate positive relation, Strong positive relation, Perfect positive relation, Moderate negative relation, Strong negative relation, Perfect negative relation

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