# Determining Correlation of Datasets

Can you provide an example using your own data set (two related and unrelated variables) of at least twenty numbers each and apply the formula of correlation. Determine the correlation of each of the two sets of data.

Is the correlation positive or negative? Can you explain what this means? Can you explain the difference between a positive and a negative correlation and how the results compare the two types of data?

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#### Solution Preview

Suppose that I observe the number of holidays I have in a month and note them as the independent variable x. The amount of savings in money in that month is the dependent variable y. It is intuitive that if I have more holidays, I will save lesser money and vice-versa. In this case, the two variables are related to each other.

The coefficient of correlation comes out ...

#### Solution Summary

This solution discusses correlations of datasets.