What are the three categories of correlation? Illustrate with real lif

What are the three categories of correlation? Illustrate with real life examples.

What will be an ideal response?

ANSWER

Correlation can be divided into three categories. These are:
a) Positive correlation that implies that two variables tend to move in the same direction. For example, when income increases, consumption increases.
b) Negative correlation that implies that two variables tend to move in the opposite direction. For example, when people have more professional training they are less likely to be unemployed.
c) Zero correlation which implies that there is no relationship between two variables. For example, the amount of air pollution in India is likely to have no relationship with the pollution control measures adopted in the U.S.