Scribd
Upload
131 views

Correlation

This document discusses correlation analysis and its various aspects. It defines correlation as a statistical tool that measures the relationship between two or more variables. There are different types of correlation including positive and negative, simple and multiple. Methods for studying correlation include scatter plots, Karl Pearson's coefficient, and Spearman's Rank Correlation Coefficient. Scatter plots are used to visualize the strength and direction of correlation between two variables.

Uploaded by

Sravanti Jarajapu
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
131 views

Correlation

This document discusses correlation analysis and its various aspects. It defines correlation as a statistical tool that measures the relationship between two or more variables. There are different types of correlation including positive and negative, simple and multiple. Methods for studying correlation include scatter plots, Karl Pearson's coefficient, and Spearman's Rank Correlation Coefficient. Scatter plots are used to visualize the strength and direction of correlation between two variables.

Uploaded by

Sravanti Jarajapu
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

CORRELATION

ANALYSIS
Learning Objectives

 What is correlation?

 Types of Correlation
 Positive and Negative
 Simple and Multiple
 Partial and Total
 Linear and Non-linear
 Methods of studying correlation
 Scatter diagram
 Karl Pearson’s coefficient of correlation
 Spearman’s Rank Correlation Coefficient
 Method of least Squares
 Correlation is a statistical tool that

helps to measure and analyze the

degree or extent to which two or

more variables fluctuate with

reference to one another.


 Correlation analysis is based on the

relationship or association between

two variables.
Nature of Correlation
Change in Change in Nature of
one variable another correlation
variable
Increase Increase Positive

Increase Decrease Negative

Decrease Increase Negative

Decrease Decrease Positive


Types of Correlation
Positive and Negative

Simple and Multiple

Partial and Total

Linear and Non-linear


Methods of studying Correlation
 Scatter Plot or diagram

 Karl Pearson’s coefficient of correlation

 Spearman’s Rank Correlation Coefficient

 Method of least Squares


Scatter Plots and Correlation
 A scatter plot (or scatter diagram) is used to
show the relationship between two variables
 Correlation analysis is used to measure
strength of the association (linear
relationship) between two variables
 Only concerned with strength of the
relationship
 No causal effect is implied
Scatter Diagram Examples
Linear relationships Curvilinear relationships

y y

x x

y y

x x
Scatter Plot Examples
Strong relationships Weak relationships

y y

x x

y y

x x
Scatter Plot Examples
No relationship

x
Features of ρand r
 Range between -1 and 1
 The closer to -1,

the stronger the negative linear relationship


 The closer to 1,

the stronger the positive linear relationship


 The closer to 0,

the weaker the linear relationship


Examples of Approximate r Values

y y y

x x x
r = -1 r = -.6 r=0
y y

x x
r = +.3 r = +1
Calculating the
Correlation Coefficient
Sample correlation coefficient:

r
 ( x  x)( y  y)
[ ( x  x ) ][  ( y  y ) ]
2 2

or the algebraic equivalent:


n xy   x  y
r
[n( x 2 )  ( x) 2 ][n( y 2 )  ( y ) 2 ]
where:
r = Sample correlation coefficient
n = Sample size
x = Value of the independent variable
y = Value of the dependent variable

You might also like