CORRELATION
ANALYSIS
Is a statistical method used to
determine whether a
relationship between two
variables exists.
Correlation Coefficient
Correlation coefficient may be positive or negative. A
positive correlation is present when high values in one
variable are associated with high values of another
variable or vice versa. On the other hand, when high
values in one variable are associated with low values of
another variable or vice versa, a negative correlation is
present. A perfect positive correlation is represented by a
+1.00 value while a perfect negative correlation is
represented by a -1.00 value.
The Pearson r
Correlation coefficients are computed,
and the most widely used measure of
correlation is the Pearson Product
Moment Correlation Coefficient or
simply Pearson r.
Computational Formula for Pearson r
Interpretation for the Pearson r Values
Pearson r Qualitative
Perfect
Very High
Moderately high
Moderately low
Very low
0 No correlation
Interpretation for the Pearson r Values
Pearson r Qualitative
Perfect
Very High
Moderately high
Moderately low
Very low
0 No correlation
Example
A study was made to determine the relationship
existing between the grade in English and the grade
in Math. A random sample of ten Grade 10 students
in the DMCVNHS were taken and the following
are the results of the sampling:
Student
1 2 3 4 5 6 7 8 9 10
English (x)
75 83 80 77 89 78 92 86 93 84
Math (y)
78 87 78 76 92 81 89 89 91 84
Solution
Student x y xy x2 y2
1 75 78 5850 5625 6084
2 83 87 7221 6889 7569
3 80 78 6240 6400 6084
4 77 76 5852 5929 5776
5 89 92 8188 7921 8464
6 78 81 6318 6084 6561
7 92 89 8188 8464 7921
8 86 89 7654 7396 7921
9 93 91 8463 8649 8281
10 84 84 7056 7056 7056
Σ
Solution
Student x y xy x2 y2
1 75 78 5850
2 83 87 7221
3 80 78 6240
4 77 76 5852
5 89 92 8188
6 78 81 6318
7 92 89 8188
8 86 89 7654
9 93 91 8463
10 84 84 7056
Σ
Solution
Student x y xy x2 y2
1 75 78 5850 5625
2 83 87 7221 6889
3 80 78 6240 6400
4 77 76 5852 5929
5 89 92 8188 7921
6 78 81 6318 6084
7 92 89 8188 8464
8 86 89 7654 7396
9 93 91 8463 8649
10 84 84 7056 7056
Σ
Solution
Student x y xy x2 y2
1 75 78 5850 5625 6084
2 83 87 7221 6889 7569
3 80 78 6240 6400 6084
4 77 76 5852 5929 5776
5 89 92 8188 7921 8464
6 78 81 6318 6084 6561
7 92 89 8188 8464 7921
8 86 89 7654 7396 7921
9 93 91 8463 8649 8281
10 84 84 7056 7056 7056
Σ
Solution
Student x y xy x2 y2
1 75 78 5850 5625 6084
2 83 87 7221 6889 7569
3 80 78 6240 6400 6084
4 77 76 5852 5929 5776
5 89 92 8188 7921 8464
6 78 81 6318 6084 6561
7 92 89 8188 8464 7921
8 86 89 7654 7396 7921
9 93 91 8463 8649 8281
10 84 84 7056 7056 7056
Σ 837 845 71030 70413 71717
Solution
Very high positive correlation
Exercise
The data below shows the number of bullying cases X and the number of drop outs
cases Y incurred in their school for one school year. Calculate the Pearson product-
moment correlation coefficient and interpret the result.
Month Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Number of
bullying 6 15 30 12 20 9 2 10 11 28
cases (X)
Number of
drop out 3 6 15 5 7 0 0 9 4 12
cases (Y)
TEST OF SIGNIFICANCE
A test of significance for the correlation may be used to
find out if the computed Pearson’s R could have occurred
in a population in which the two variables are related or
not. The test statistic follows the t distribution with n-
degrees of freedom.The significance is composed using the
formula of t test as shown in Formula
Where t= test for correlation coefficient
r= correlation coefficient
N=number of paired samples
Procedure for Pearson Product-Moment Correlation Test
1.Set up the hypotheses
2.Set the level of significance
3.Calculate the degrees of freedom (df= N-2) and determine the
critical value of t.
4.Calculate the value of Pearson’s r
5.Calculate the value of t.
6.Determine the statistical decision for hypothesis testing
7.State the conclusion
The owner of a chain of fruit shake stores would like to study the correlation
between atmospheric temperature and sales during the summer season. A
random sample of 12 days is selected with the results given as follows.
Day 1 2 3 4 5 6 7 8 9 10 11 12
Temperature (°F) 79 76 78 84 90 83 93 94 97 85 88 82
Total Sales 147 143 147 168 206 155 192 211 209 187 200 150
(units)
Is there a significant relationship between atmospheric temperature and sales? Compute
the coefficient of correlation and determine at 0.05 level of significance.
4.Calculate the value of Pearson’s r
x y xy x^2 y^2
1 79 147 11613 6241 21609
2 76 143 10868 5776 20449
3 78 147 11466 6084 21609
4 84 168 14112 7056 28224
5 90 206 18540 8100 42436
6 83 155 12865 6889 24025
7 93 192 17856 8649 36864
8 94 211 19834 8836 44521
9 97 209 20273 9409 43681
10 85 187 15895 7225 34969
11 88 200 17600 7744 40000
12 82 150 12300 6724 22500
Sum 1029 2115 183222 88733 380887
