Correlation 140708105710 Phpapp01
Correlation 140708105710 Phpapp01
Correlation 140708105710 Phpapp01
ANALYSIS
Correlation
( - ve) or ( + ve)
Interpretation of Correlation
Coefficient (r)
The value of correlation coefficient ‘r’ ranges
from -1 to +1
If r = +1, then the correlation between the two
variables is said to be perfect and positive
If r = -1, then the correlation between the two
variables is said to be perfect and negative
If r = 0, then there exists no correlation between
the variables
Regression Analysis
Regression Analysis is a very powerful
tool in the field of statistical analysis in
predicting the value of one variable, given
the value of another variable, when those
variables are related to each other.
Regression Analysis
Regression Analysis is mathematical measure of
average relationship between two or more
variables.
Regression analysis is a statistical tool used in
prediction of value of unknown variable from
known variable.
Advantages of Regression Analysis
Regression analysis provides estimates of
values of the dependent variables from the
values of independent variables.
Regression analysis also helps to obtain a
measure of the error involved in using the
regression line as a basis for estimations .
Regression analysis helps in obtaining a
measure of the degree of association or
correlation that exists between the two variable.
Regression line
Regression line is the line which gives the best
estimate of one variable from the value of any
other given variable.
The regression line gives the average
relationship between the two variables in
mathematical form.
Regression line
For two variables X and Y, there are always two
lines of regression –
Regression line of X on Y : gives the best
estimate for the value of X for any specific
given values of Y
X=a+bY a = X - intercept
b = Slope of the line
X = Dependent variable
Y = Independent variable
Regression line
For two variables X and Y, there are always two
lines of regression –
Regression line of Y on X : gives the best
estimate for the value of Y for any specific given
values of X
Y = a + bx a = Y - intercept
b = Slope of the line
Y = Dependent variable
x= Independent variable
Why always two lines of
Regression
Properties of the Regression Coefficients
The coefficient of correlation is geometric mean of the two
regression coefficients. r = √ byx * bxy
If byx is positive than bxy should also be positive & vice
versa.
If one regression coefficient is greater than one the other
must be less than one.
The coefficient of correlation will have the same sign as
that our regression coefficient.
Arithmetic mean of byx & bxy is equal to or greater than
coefficient of correlation. byx + bxy / 2 ≥ r
Regression coefficient are independent of origin but not of
scale.
Correlation analysis vs.
Regression analysis.
Regression is the average relationship between two
variables
Correlation need not imply cause & effect
relationship between the variables understudy.- R A
clearly indicate the cause and effect relation ship
between the variables.
There may be non-sense correlation between two
variables.- There is no such thing like non-sense
regression.
Cont…
When the correlation coefficient is zero,
the two lines are perpendicular and when it
is ±1, then the regression lines are parallel
or coincide.