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Correlation and Linear Regression

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38 views17 pages

Correlation and Linear Regression

Uploaded by

eunicekyzahilusorio10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Why do most students who excel in English do not do well in Mathematics?

Have you ever wondered why some of your friends who are good in
mathematics do not have high grades in English? Did it occur to you to find out
if there exist relationship between the academic performance in english and
achievements in mathematics? In the field of mathematics called STATISTICS,
the relationship between these two variables is known as correlation.
Correlation
a group of techniques used to measure the strength of the association /
relationship between variables.
Types of Correlation
The scatter plot explains the correlation between the two attributes or variables. It represents how
closely the two variables are connected. There can be three such situations to see the relation
between the two variables –

● Positive Correlation – when the values of the two variables move in the same direction so that an
increase/decrease in the value of one variable is followed by an increase/decrease in the value of
the other variable.
● Negative Correlation – when the values of the two variables move in the opposite direction so that
an increase/decrease in the value of one variable is followed by decrease/increase in the value of
the other variable.
● No Correlation – when there is no linear dependence or no relation between the two variables.

https://byjus.com/maths/correlation/
Pearson Correlation Coefficient

➢ The degree of linear association / 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. If a curved
line is needed to express the relationship, other and more complicated measures of
the correlation must be used.

The correlation coefficient

➢ is measured on a scale that varies from 1 through 0 to -1. Perfect correlation


between two variable is expressed by either 1 or -1. Positive values indicate a
relationship between x and y variables such that as values for x increases, values for y
also increase. Negative values indicate a relationship between x and y such that as
values for x increase, values for y decrease. If there is no linear correlation or a weak
linear correlation, r is close to 0. https://byjus.com/maths/correlation/
Interpretation of r:
r Interpretation

1.0 Perfect (Positive/Negative) Correlation

0.80 – 0.99 Very Strong (Positive/Negative) Correlation

0.60 – 0.79 Strong ( Positive/Negative) Correlation

0.40 – 0.59 Moderate (Positive/Negative) Correlation

0.20 – 0.39 Weak (Positive/Negative) Correlation

0.01 – 0.19 Very Weak (Positive/Negative) Correlation

0.0 No Correlation
Where n = Quantity of Information

Σx = Total of the First Variable Value

Σy = Total of the Second Variable Value

Σxy = Sum of the Product of first & Second Value

Σx2 = Sum of the Squares of the First Value

Σy2 = Sum of the Squares of the Second Value


Example:

Suppose the following data were collected to determine the relationship between pressure and the
corresponding scale reading for the purpose of calibration. Determine the coefficient of correlation, r, and
interpret.
Example:

Suppose the following data were collected to determine the relationship between pressure and the
corresponding scale reading for the purpose of calibration. Determine the coefficient of correlation, r, and
interpret.

From the data, the following are computed:

∑x = 350 , ∑y = 607 , ∑x2 = 14,500 , ∑y2 = 44, 961 ,∑xy = 25, 490

r = 0.993

Interpretation:

There is a direct, very strong correlation between pressure and scale


reading . In practical terms, as the pressure increases, the
scale reading also increases.
Spearman Rank Correlation

Alternatively, the Spearman rank correlation ( a non-parametric) is


used for variables that may be quantitative discrete or ordered
categorical. Observations are replaced by their ranks in the calculation
of the correlation coefficient. It is used to determine a possible
correlation (consistency) between two ordinal variables

This results in a simple formula for Spearman’s rank correlation, rs ,

Where:
d = difference in the ranks of the two
variables for a given respondent

n = number of pairs of values of x and y


Example:

Ten aspirants for the position of an accountant in an international firm were ranked in their CPA Board
Examination rating. They were also ranked in the actual job performance. The data gathered are tabulated
below where the highest is 1 and the lowest rank is 10. Compute r and interpret.
∑di2 =∑(Rx – Ry)2 = 32

= 0.8061

Interpretation:

There is a very strong, direct correlation


between the applicants’ CPA board exam
rating and their actual job performance.
Thank
you

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