what is a inverse relationship

1 year ago 44
Nature

Inverse Relationship

An inverse relationship is a situation where if one variable increases, the other tends to decrease. In other words, when one parameter in a relationship increases, the value of the other parameter tends to decrease. This type of relationship is also known as a negative correlation. In statistics, an inverse relationship is often denoted by the correlation coefficient "r" having a value between -1 and 0, with r = -1 indicating perfect inverse correlation. For example, the relationship between bond prices and interest rates is an example of an inverse relationship.

In summary, an inverse relationship is a type of correlation that exists between two variables wherein an increase in one variable is associated with a decrease in another variable.