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Correlation

The document discusses correlation and different methods for studying correlation, including scatter diagrams, graphic methods, Karl Pearson's coefficient of correlation, and Spearman rank correlation. Examples are provided to demonstrate calculating correlation coefficients.

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Mary Noelyn Degoma
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23 views19 pages

Correlation

The document discusses correlation and different methods for studying correlation, including scatter diagrams, graphic methods, Karl Pearson's coefficient of correlation, and Spearman rank correlation. Examples are provided to demonstrate calculating correlation coefficients.

Uploaded by

Mary Noelyn Degoma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Correlation

What is correlation

▪ finding the relationship between two


quantitative variables without being able to
infer causal relationships
▪ is a statistical technique used to determine
the degree to which two variables are related
Title and Content Layout with Chart
Methods of Studying Correlation

▪ Scatter diagram Method


▪ Graphic Method
▪ Karl Pearson’s Co - efficient of correlation and
▪ Method of Least Squares.
Scatter Diagram Method

▪ Scatter diagram is a graph


of observed plotted points
where each point
represents the values of X
and Y as a coordinate.
▪ It portrays the relationship
between these two
variables graphically.
Graphic method

▪ In this method, the individual values of


two variables are plotted on the graph
sheet and draw the curves of both the
variables say x and y.
▪ If both X and Y are moving in the
same direction either upward or
downward, then the correlation is said
to be positive. If the curves of X and Y
move in the opposite direction; then
the correlation is said to be negative.
Karl Pearson’s Coefficient of
Correlation

▪ Measures the strength of the linear relationship


between one dependent and one independent
variable
– curvilinear relationships need other techniques

▪ Values lie between +1 and -1


– perfect positive correlation r = +1
– perfect negative correlation r = -1
– no linear relationship r = 0 4
Karl Pearson’s Coefficient of
Correlation
Karl Pearson’s Coefficient of
Correlation

Formula:

rxy = Pearson r correlation coefficient between x and y


n = number of observations
xi = value of x (for ith observation)
yi = value of y (for ith observation)
Spearman rank correlation

▪ A non-parametric test that is used to measure the degree


of association between two variables.
▪ The Spearman rank correlation test does not carry any
assumptions about the distribution of the data and is the
appropriate correlation analysis when the variables are
measured on a scale that is at least ordinal.
Spearman rank correlation formula:

ρ= Spearman rank correlation


di= the difference between the ranks of corresponding variables
n= number of observations
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.

NO. Age(years) Weight (kg)


1 7 12
2 6 8
3 8 12
4 5 10
5 6 11
6 9 13
Example

Formula:
Example

Formula:

r = 0.759
Strong direct correlation
Calculating Correlation Coefficient

r = -0.94
Indirect Strong relation
Strengths of Correlations

▪ Correlation allows the researcher to investigate naturally


occurring variables that maybe unethical or impractical to
test experimentally. For example, it would be unethical to
conduct an experiment on whether smoking causes lung
cancer.
▪ Correlation allows the researcher to clearly and easily see if
there is a relationship between variables. This can then be
displayed in a graphical form.
Limitations of Correlations

▪ Correlation allows the researcher to clearly and easily see if


there is a relationship between variables. This can then be
displayed in a graphical form.
▪ For example:
– Suppose we found a positive correlation between watching
violence on T.V. and violent behavior in adolescence. It could be
that the cause of both these is a third (extraneous) variable - say for
example, growing up in a violent home - and that both the
watching of T.V. and the violent behavior are the outcome of this.
Limitations of Correlations

▪ Correlation does not allow us to go beyond the data that is


given
▪ For example:
– Suppose it was found that there was an association between time
spent on homework (1/2 hour to 3 hours) and number of G.C.S.E.
passes (1 to 6). It would not be legitimate to infer from this that
spending 6 hours on homework would be likely to generate 12
G.C.S.E. passes.

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