Define: Inverse Relationship

UK Accounting Glossary

Definition: Inverse Relationship


Quick Summary of Inverse Relationship


An Inverse relationship refers to a type of correlation that exists between two different numbers. In the instance of an inverse relationship when one number has a value that rises, then the other will correspondingly fall in the value of the first number.



What is the dictionary definition of Inverse Relationship?

Dictionary Definition


In statistics, there is a negative relationship or inverse relationship between two variables if higher values of one variable tend to be associated with lower values of the other.


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Full Definition of Inverse Relationship


An Inverse relationship refers to a type of correlation that exists between two different numbers. In the instance of an inverse relationship when one number has a value that rises, then the other will correspondingly fall in the value of the first number.

An inverse correlation, also known as negative correlation (or an inverse relationship), is a contrary relationship between two variables such that they move in opposite directions. For example, with variables A and B, as A increases, B decreases, and as A decreases, B increases.

Notes:

  • The relationship between two variables can change over time and may have periods of positive correlation as well.
  • Even though two sets of data may have a strong negative correlation, this does not imply that the behaviour of one has any influence on or causation relationship with the other.

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Synonyms For Inverse Relationship


inverse relation, inversely related, inversely proportional, in inverse proportion, inverse ratio


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Definition Sources


Definitions for Inverse Relationship are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 8th December 2019.