The Deep Extragalactic Evolutionary Probe 2 (DEEP2) project will obtain redshifts for similar to 60,000 galaxies in the range z similar or equal to 0.7-1.5 in a comoving volume of roughly 7 x 10(6) Mpc(3) h(-3) for a Lambda cold dark matter universe. The survey will map four separate 2 degrees x 0.degrees5 strips of the sky. To study the expected clustering within the survey volume, we have constructed mock galaxy catalogs from the GIF and Hubble Volume simulations developed by the Virgo consortium. We present two- and three-point correlation analyses of these mock galaxy catalogs to test how well we will measure these statistics, particularly in the presence of selection biases, which will limit the surface density of galaxies that we can select for spectroscopy. We find that although the projected angular two-point correlation function w(theta) is strongly affected, neither the two- point nor three-point correlation functions, xi (r) and zeta (r), are significantly compromised. We will be able to make simple corrections to account for the small amount of bias introduced. We quantify the expected redshift distortions due to random orbital velocities of galaxies within groups and clusters ("fingers of God") on small scales of similar to1 Mpc h(-1) using the pairwise velocity dispersion sigma (12) and galaxy-weighted velocity dispersion sigma (1). We are able to measure sigma (1) to a precision of similar to 10%. We also estimate the expected large-scale coherent infall of galaxies due to supercluster formation ("Kaiser effect"), as determined by the quadrupole-to-monopole ratio xi (2)/xi (0) of xi (r(p), pi). From this measure we will be able to constrain beta to within similar to0.1 at z = 1. For the DEEP2 survey we will combine the correlation statistics with galaxy observables such as spectral type, morphology, absolute luminosity, and line width to enable a measure of the relative biases in different galaxy types. Here we use a counts-in-cells analysis to measure sigma (8) as a function of redshift and determine the relative bias between galaxy samples based on absolute luminosity. We expect to measure sigma (8) to within 10% and detect the evolution of relative bias with redshift at the 4-5 sigma level, with more precise measurements for the brighter galaxies in our survey.