ABSTRACT
This chapter investigates the degree of relationship between two continuous variables, such as, fertilizer dosage and output of grain, household income and consumption expenditure, price and supply of commodities, price and demand for commodities, amount of rainfall and yield of crop etc. The tool used to explore this relationship is the correlation analysis. This tool can be used to find out the nature and degree of linear relationship or association between the two or more continuous variables under consideration. The main purpose of correlation analysis is to assess, whether the two variables are associated or not? Perfect linear correlation is of two types such as Perfect positive linear correlation and Perfect negative linear correlation.
