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We measure correlation with the correlation coeffi cient. Th e correlation coeffi cient is an index number between -1 and +1; +1 means perfect positive correlation and -1 means perfect negative correlation. Other values between -1 and +1 represent the diff erent degrees of imperfect correlation. Positive correlation (between 0 and +1) means that two variables tend to move with each other, or, more accurately, when one variable is drawn randomly from (say) the upper end of its probability distribution, the other variable also will tend to be drawn from the upper end of its distribution. Negative correlation (between -1 and 0) is when the variables tend to move in opposite directions, so that when one is high, the other tends to be low.

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