Hi suraj,
Before using any kind of relationship wheather Lookup / Master-Detail you need to pay attention towards the relation of child with Parent i.e wheather child should exist or not if parent gets deleted.Let me explain it to you with the help of a some scenarios.
SCENARIO 1:
Under a School , there are large no of Students.If school was shut , then all its students will have to leave that place.So for the student , school is must.So Master-Detail relationship best suits this scenario.
SCENARIO 2:
Shopkeeper and its Customers.If customer want something from the market then he/she can choose any shopkeeper.If one shopkeeper has closed his/her shop then customer can go to another shopkeeper to buy his/her commodity.So there’s no direct dependency.Hence Lookup relationship best suits this scenario.
I hope this will clear your confusion.
Thanks.