Answer

Difference between a Positive Linear Relationship and Negative Linear Relationship

According to Liao (2018), linear relationship is a relationship of direct proportionality whereby an increase or decrease on one variable will result to a corresponding increase or decrease on the other variable. For example, if the cost of an item is usually linear, like if a pen costs one dollar, then ten pens will cost ten dollars. Hence, a positive linear relationship is used to describe variables that change together while negative linear relationship describes variables that change in opposing sides.

Positive linear relationships occur more frequently as compared to negative linear relationships. Robertson (2018) posits that positive linear relationships correspond to various instances that take place in our daily lives. For instance, in business, the more money that is spent to market or advertise a product, the more a customer will buy the product. Additionally, in the working industry, the more hours an employee spends while working, the more money or salary they are likely to earn. In housing, the larger the house, the more the rent. Meanwhile, negative linear relationships, also inverse correlations, involve two variables taking different turns which is a common factor in investments. For example, in the world of investment, an increase in the stock exchange prices leads to a relative decrease in the bond market. For instance, in the airline industry, an increase in the price of crude oil yields a negative effect on the airline stocks due to the decrease in earnings. Therefore, linear relationship describes variables that change together while negative linear relationship describes variables that change in opposing sides.