This document discusses the basic concepts of correlation including:
1. Correlation measures the strength and direction of association between two continuous variables. A positive correlation means both variables increase together, while a negative correlation means one increases as the other decreases.
2. The coefficient of correlation, r, indicates the strength of correlation, ranging from -1 to 1. Zero correlation means there is no linear relationship between the variables.
3. Correlation does not imply causation - it only shows association. Changes in one variable may not cause changes in the other.
4. Examples are provided to illustrate different correlation strengths and directions between variables like government spending/infrastructure development, police action/crime rates, and study