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Understanding Correlation Analysis

Correlation analysis measures the degree of linear association between two or more variables. A scatter plot graphs pairs of values from the independent and dependent variables to determine the nature of their relationship. The Pearson correlation coefficient r quantifies the strength and direction of linear correlation between two variables, ranging from -1 to 1. A value of 0 indicates no linear correlation, 1 indicates perfect positive correlation, and -1 indicates perfect negative correlation.

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Dominique Pahayahay
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33 views

Understanding Correlation Analysis

Correlation analysis measures the degree of linear association between two or more variables. A scatter plot graphs pairs of values from the independent and dependent variables to determine the nature of their relationship. The Pearson correlation coefficient r quantifies the strength and direction of linear correlation between two variables, ranging from -1 to 1. A value of 0 indicates no linear correlation, 1 indicates perfect positive correlation, and -1 indicates perfect negative correlation.

Uploaded by

Dominique Pahayahay
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Understanding Correlation Analysis

Correlation is the degree to which two or more quantities are linearly associated.

Scatter Plot
 Scatter plot is a graph of order pair (x, y) of numbers consisting of the independent variables x,
and dependent variable y.
 The independent variable is the variable that can be controlled or manipulated.
 The dependent variable is the variable that cannot be controlled or manipulated.
 The independent variable is plotted in the horizontal axis, while the dependent variable is
plotted in the vertical axis in the coordinate plane.
 The purpose of third graph is to determine the nature of the relationship between the variables.
The relationship maybe positive linear, negative linear, curvilinear, or no discernible
relationship.

Example 1 Construct a scatter plot for the given data.

Age, x Pressure, y
43 128
48 120
56 135
61 143
67 141
70 152

Example 2

A B
50 30
45 27
40 24
35 21
30 18
25 15
20 12
15 9
10 6
5 3 This illustrates a perfect positive
relationship. When computed the coefficient of
correlation is 1
Example 3

A B
50 3
45 6
40 9
35 12
30 15
25 18
20 21
15 24
10 27
5 30
This illustrates the perfect negative relationship.
When computed, the coefficient of correlation
is -1.

Example 4

A B
50 24
45 21
40 18
35 23
30 18
25 11
20 10
15 7
10 4
5 2

This illustrates a very high positive correlation


between the two sets of points.
Example 5

A B
50 8
45 20
40 6
35 15
30 5
25 20
20 9
15 8
10 16
5 8
This illustrates a low negative relationship.
When the points are evenly distributed all over
the scatter diagram, that will indicate that there
is no relationship.

CORRELATION

Correlation is a statistical method used to determine if there is a relationship between variables and the
strength of the relationship.

Pearson Correlation Coefficient


 The degree of linear association or relationship between two variables (at least of interval scale)
is measured by a correlation coefficient, denoted by r.
 It is sometimes called Pearson correlation coefficient (Pearson product moment correlation
coefficient) in honor of its developer.

FORMULA
INTERPRETATION

Example: A statistics professor at a state university wants to see how strong the relationship is between
eh student’s score on a test and his or her grade point average. The data obtained from the sample
follow.

SOLUTION

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