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Correlation

The document discusses correlation as a statistical technique to measure the relationship between two variables, highlighting the use of scatter diagrams and the calculation of the simple correlation coefficient (r). It explains the interpretation of r values, ranging from perfect negative to perfect positive correlation, and provides examples of calculating correlation coefficients using both quantitative and qualitative data. Additionally, it introduces the Spearman Rank Correlation Coefficient as a non-parametric measure for assessing relationships between ranked data.

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Shani Warraich
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16 views32 pages

Correlation

The document discusses correlation as a statistical technique to measure the relationship between two variables, highlighting the use of scatter diagrams and the calculation of the simple correlation coefficient (r). It explains the interpretation of r values, ranging from perfect negative to perfect positive correlation, and provides examples of calculating correlation coefficients using both quantitative and qualitative data. Additionally, it introduces the Spearman Rank Correlation Coefficient as a non-parametric measure for assessing relationships between ranked data.

Uploaded by

Shani Warraich
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1

MATH – 361
Introduction to Probability and Statistics

Lecture No. 40

Correlation
Correlation

Correlation is a statistical technique used to determine the


degree to which two variables are related
Scatter diagram

• Rectangular coordinate
• Two quantitative variables
• One variable is called independent (X) and the second is called
dependent (Y)
• Points are not joined Y
* *
• No frequency table *
X
Example

Wt.
67 69 85 83 74 81 97 92 114 85
(kg)
SBP
120 125 140 160 130 180 150 140 200 130
(mmHg)

Plot Scatter diagram of weight and systolic blood pressure


Scatter diagram

Wt.
67 69 85 83 74 81 97 92 114 85
(kg)
SBP
120 125 140 160 130 180 150 140 200 130
(mmHg)

Scatter diagram of weight and systolic blood pressure


Scatter diagram

Scatter diagram of weight and systolic blood pressure


Scatter Plots

The pattern of data is indicative of the type of relationship between


your two variables:

➢positive relationship
➢negative relationship
➢no relationship
Positive and Negative Relationship
No Relation
Simple Correlation coefficient (r)

➢Statistic showing the degree of relation between two variables

➢It is also called Pearson's correlation or product moment correlation


coefficient

➢It measures the nature and strength between two variables of


the quantitative type.
➢The sign of r denotes the nature of association

➢while the value of r denotes the strength of association


➢If the sign is +ve this means the relation is direct (an increase in one
variable is associated with an increase in the
other variable and a decrease in one variable is associated with a
decrease in the other variable)

➢While if the sign is -ve this means an inverse or indirect relationship


(which means an increase in one variable is associated with a
decrease in the other)
➢The value of r ranges between ( -1) and ( +1)
➢The value of r denotes the strength of the association as illustrated
by the following diagram

strong intermediate weak weak intermediate strong

-1 -0.75 -0.25 0 0.25 0.75 1


indirect Direct
perfect correlation no relation perfect correlation
➢If r = 0 this means no association or correlation between the two
variables

➢If 0 < r < 0.25 = weak correlation

➢If 0.25 ≤ r < 0.75 = intermediate correlation

➢If 0.75 ≤ r < 1 = strong correlation

➢If r = l = perfect correlation


How to compute the simple correlation
coefficient (r)
16
Alternative Formula to compute the simple
correlation coefficient (r)
Example

A sample of 6 children was selected, data about their age in years and
weight in kilograms was recorded as shown in the following table . It is
required to find the correlation between age and weight

serial No Age (years) Weight (Kg)


1 7 12
2 6 8
3 8 12
4 5 10
5 6 11
6 9 13
These 2 variables are of the quantitative type, one variable (Age) is called the
independent and denoted as (X) variable and the other (weight)
is called the dependent and denoted as (Y) variables to find the relation
between age and weight compute the simple correlation coefficient using the
following formula:
Age (years) Weight (Kg)
S No. xy X2 Y2
(x) (y)
1 7 12 84 49 144
2 6 8 48 36 64
3 8 12 96 64 144
4 5 10 50 25 100
5 6 11 66 36 121
6 9 13 117 81 169
∑x= ∑y= ∑x2= ∑y2=
Total ∑xy= 461
41 66 291 742
r = 0.759
strong direct correlation
Example: Relationship between Anxiety
and Test Scores
Anxiety Test score
X2 Y2 XY
(X) (Y)
10 2 100 4 20

8 3 64 9 24

2 9 4 81 18

1 7 1 49 7

5 6 25 36 30

6 5 36 25 30

∑X = 32 ∑Y = 32 ∑X2 = 230 ∑Y2 = 204 ∑XY=129


Calculating Correlation Coefficient
Spearman Rank Correlation Coefficient (rs)

➢It is a non-parametric measure of correlation


➢This procedure makes use of the two sets of ranks that may be
assigned to the sample values of x and Y
➢Spearman Rank correlation coefficient could be computed in the
following cases:
➢Both variables are quantitative
➢Both variables are qualitative ordinal
➢One variable is quantitative and the other is qualitative ordinal
Procedure:

➢Rank the values of X from 1 to n where n is the numbers of pairs of values


of X and Y in the sample

➢Rank the values of Y from 1 to n

➢Compute the value of di for each pair of observation by subtracting the rank
of Yi from the rank of Xi

➢Square each di and compute ∑di2 which is the sum of the squared values
Apply the following formula

➢ The value of rs denotes the magnitude and nature of


association giving the same interpretation as simple r.
Example
In a study of the relationship between level education and income the
following data was obtained. Find the relationship between them and
comment
Sample numbers level education (X) Income (Y)
A Preparatory 25
B Primary 10
C University 8
D secondary 15
E illiterate 50
Answer:

Rank Rank
(X) (Y) di di2
X Y

A Preparatory 25 3 4 -1 1
B Primary. 10 4 2 2 4
C University. 8 1 1 0 0
D secondary 15 2 3 -1 1
E illiterate 50 5 5 0 0

∑ di2=6
Comment:
There is a direct intermediate correlation between level of education
and income
29

Practice Problem - 1
In a study of the relationship between level education and income the
following data was obtained. Find the relationship between them and
comment
Sample numbers level education (X) Income (Y)
A Preparatory 25
B Primary 10
C University 8
D secondary 10
E secondary 15
F illiterate 50
G University 60
30

Practice Problem - 2
31

Practice Problem - 3

In a study of the relationship between marks scored in English and Math


following data was obtained. Find the relationship between them and
comment
32

Study Links

https://www.youtube.com/watch?v=zhTtjBvvOcM

https://www.questionpro.com/blog/spearmans-rank-coefficient-of-
correlation/

https://statistics.laerd.com/statistical-guides/spearmans-rank-order-
correlation-statistical-guide.php

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