Aims of econometric analysis:
1. Testing economic hypotheses
2. Quantifying economic parameters
3. Forecasting
4. Establishing new facts from statistical evidence (e.g. empirical relationships among variables).

S.No Correlation Regression 1 Correlation is the relationship between two or more variables, which vary with the other in the same or the opposite direction Regression means going back and it is a mathematical measure showing the average relationship between two variables 2 Both the variables X and Y are random
variables Both the variables may be random variables 3 It finds out the degree of relationship
between two variables and not the cause and effect relationship It indicates the cause and effect relationship between the variables and establishes the functional relationship. 4 It is used for testing and verifying the
relation between two variables and gives limited information Besides verification, it is used for the prediction of one value, in relation to the other given value.

Correlation is classified into two types as Positive correlation and Negative Correlation based on the direction of change of the variables.
Positive Correlation:
The correlation is said to be positive if the values of two variables move in the same direction.
Ex: If income and Expenditure of a Household may be increasing or decreasing simultaneously. If so, there is positive correlation. Ex. Y = a + bx
Negative Correlation:
The Correlation is said to be negative when the values of variables move in the opposite
directions. Ex. Y = a – bx
Ex: Price and demand for a commodity move in the opposite direction.

NSSO has four divisions:
1. Survey Design and Research Division (SDRD)
2. Field Operations Division (FOD)
3. Data Processing Division (DPD)
4. Co-ordination and Publication Division (CPD)

Central Statistical Office (CSO)
1. The Central Statistical Office is one of the two wings of the National Statistical Organisation (NSO).
2. It is responsible for co-ordination of statistical activities in the country and for evolving and maintaining statistical standards.
3. Its activities include compilation of National Accounts; conduct of Annual Survey of Industries and Economic Censuses, compilation of Index of Industrial Production as well as Consumer Price Indices.
4. It also deals with various social statistics, training, international cooperation, Industrial Classification, etc.